CNBC’s Realty Check with Diana Olick is reporting that Wells Fargo, the nation’s largest lender, is offering a new low down-payment loan called “yourFirstMortgage” where the down-payment is only 3% on loans up to $417k. The program is targeted to first-time and low to moderate income buyers with a minimum FICO score of 620. While Wells Fargo will service the loans, Fannie Mae will buy them, which means they must be underwritten to conform with Fannie Mae’s standards, which are high.
“We are fully underwriting the borrowers, we are partnering with Fannie Mae to originate and sell these loans, we are ensuring the borrowers have an ability to repay and that they’re qualified for home ownership, but we’re simplifying things for the homebuyer,” said Brad Blackwell, executive vice president and portfolio business manager at Wells Fargo.
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