In a move that could help jolt the first-time home buyer market, Wells Fargo announced that its offering 3% down mortages to borrowers with a FICO score as low as 620, according to HousingWire's Brena Swanson.
The new low-down payment program, yourFirst Mortgage, which went live on Monday, offers lower out-of-pocket costs, expands credit criteria and pushes home buyer education to help more first-time home buyers and low- to moderate-income families achieve sustainable home ownership.
Wells is touting the simplicity of the mortgages, which builds mortgage insurance into the loan, according to Swanson.
Greg Gwizdz, executive vice president of national retail sales with Wells Fargo, said in an interview, “One of the cornerstones of the product is simplicity. The complexities create barriers for a lot of home buyers because they really have a hard time understanding what they need to do to qualify.”