Requirements on Jumbo Loans Just Got Tighter From Wells Fargo
Wells Fargo is tightening the guidelines on a regular basis.
You may not be in a distressed area but the guidelines are much tighter then 6 months ago and far tighter versus a year ago.
Wells Fargo has increased the FICO requirement on jumbo loans from 620 to now a minimum score of 680. The max DTI went from 50% down to 45%. I know Wells Fargo is usually the front runner in jumbo pricing so if you are quoting a rate to your borrower please make sure this announcement does not eliminate your borrower from going to Wells. They also have changes to the Limited Doc/VOA program.
THE NEW GUIDELINES ARE EFFECTIVE DECEMBER 15, 2007.
Wells Fargo appraisal guidelines are as follows:
- At least three sales closed within the previous six months
- Comps should be within one mile/12 blocks of the subject (urban/surban)
- Rural areas comps must be within 10 miles
Wells is also watching the Soft and Distressed Markets.