Lenders Loosening Purse Strings?

In what hopefully is a good omen for the beleagured real estate industry, it appears some lenders are becoming more lenient with qualifications for buyers. Last month Wells Fargo announced that FHA loans they originate would be available for buyers with credit scores as low as 500. This does require that the borrower have anywhere from 5-10% for a downpayment and the downpayment must not be gifted or part of an assistance program. A move towards making loans more available will be welcome news for the real estate industry, which saw lenders retract severely from the widespread irresponsible lending of the last decade. This shift is further embodied by many lenders once again originating jumbo loans which had nearly disappeared in the last couple years. The real estate industry specifically and economy in general will benefit from the prudent lending of money by banks to well qualified buyers.

Stephen Woodall

REALTOR, GRI @ Long Realty Company

Stephen has made real estate his full-time career and passion since 2008, primarily specializing in the Foothills & the Northwest Tucson areas of Oro Valley and Marana. He is a multi-million dollar producer, representing both sellers & buyers. Stephen has tremendous experience in new home sales, listing & selling primary residences, listing & selling vacant land, listing & selling luxury homes, investment properties, rentals, and real estate development parcels.