This post originally appear on HousingStorm.com
Wells Fargo releases new guidlines for Buyers who have had a short sale, foreclosure, or bankruptcy.
As of August 17th 2009...
After completion of a short sale
Caused by financial mismanagement:
- 4 Years are required to re-establish credit
- Minimum Credit Score = 680
Caused by extenuating circumstances:
- 2 Years are required to re-establish credit
- Significant written evidence to support the extenuating circumstances will be required
After completion of a foreclosure or bankruptcy
Caused by financial mismanagement:
- 5 Years are required to re-establish credit
- Minimum Credit Score = 680
- Up until 7 years from completion, addition restrictions apply:
- Minimum 10% down payment required
- No second home or investment purchases
- No cash-out refinances
Caused by extenuating circumstances:
- 3 Years to re-establish credit
- Up until 7 years from completion, addition restrictions apply:
- Written proof of extenuating circumstances
- Minimum Credit Score = 620
- No second home or investment purchases
- No cash-out refinances
After completion of a deed-in-lieu of foreclosure
Caused by financial mismanagement:
- 4 Years are required to re-establish credit
- Minimum Credit Score = 680
- Up until 7 years from completion, addition restrictions apply:
- Buyer may purchase an investment property or second home.
- Cash-out refinances allowed
- Evidence borrower has re-established acceptable credit history
Caused by extenuating circumstances:
- 2 Years are required to re-establish credit
- Minimum Credit Score = 620-680 (depending on other circumstances)
- Borrower may purchase a second home or investment property.
- Written proof and documentation of extenuating circumstances.
Comments(1)