Wells Fargo to Accept FHA Mortgages with Credit Scores Under 600

Wells Fargo announced that effective January 15, 2011, they now accept Federal Housing Administration (FHA) mortgages for borrowers with credit scores as low as 500. For borrowers with credit scores 500-579 a 10 percent down payment is required and the down payment may not be a gift or be part of a down payment assistance program. For borrowers with credit scores 580-599 a 5 percent down payment is required and the down payment may not be a gift or be part of a down payment assistance program. Borrowers with a credit score of 600 or higher are required to have a 3.5 percent down payment and a gift is acceptable. For all borrowers, seller concessions are limited to 3 percent.