Wells Fargo makes homebuyers put up even more cash in some of New York’s toniest suburbs

Homebuyers in Fairfield County need to put up 25% of the home, rather than 20%

New York /
Nov.November 16, 2018 12:00 PM

Greenwich, Connecticut (Credit: Visit CT)

Homebuyers in Connecticut’s Fairfield County will need down payments of 25 percent instead of 20 percent if they want a mortgage from Wells Fargo.

The largest mortgage lender in the U.S. has applied the new standard to the county for loans higher than $601,450 after categorizing the area as distressed, according to Bloomberg. It takes effect for loans made after Sept. 15, and Wells Fargo did not elaborate on why they changed the standard.

Home sales in Fairfield County dropped by 0.7 percent in the third quarter, but the median price jumped 3.7 percent to $425,000, and contracts jumped 28 percent. These were favorable numbers compared to other suburbs in New York.

Miller Samuel president Jonathan Miller told Bloomberg the only reason he could think of for applying different standards to Fairfield would be issues at the state government.

“There’s no rhyme or reason for underwriting standards to be different in Fairfield,” he said. “The only thing I can think of is they’re worried about what’s happening in Hartford more than what’s happening at the specific property level.”

Homebuyers will also have to deal with the reduction in state and local property tax (SALT) deductions attributed to the federal tax code changes made this year. [Bloomberg] – Eddie Small


Related Articles

arrow_forward_ios
422 E. 84th Street (Google)
Uptown chiropractor, diamond dealer battle over $349K in rent on UES
Uptown chiropractor, diamond dealer battle over $349K in rent on UES
The property on 73rd Street formerly owned by Grace Kelly. (Getty, StreetEasy)
UES townhouse rumored to have been owned by Grace Kelly sells for $25M
UES townhouse rumored to have been owned by Grace Kelly sells for $25M
Firefighters battling a 11-alarm fire at a chemical plant in Passaic. (Photo by Tayfun Coskun/Anadolu Agency via Getty Images)
Bergen County residents told to close windows after fire at chlorine plant
Bergen County residents told to close windows after fire at chlorine plant
1428 N Genesee Drive and Freddie Krueger (Realtor, Wikimedia)
‘A Nightmare on Elm Street’ home sells for $3M
‘A Nightmare on Elm Street’ home sells for $3M
Discovery at West Road on 9404 West Road, Houston and Haven at Eldridge on 13115 Whittington Drive and McCann Realty Partners Matt Akin (Pegasus Residential, McCann Realty Partners)
McCann Realty Partners swings two Texas multifamily deals
McCann Realty Partners swings two Texas multifamily deals
(Illustration by The Real Deal)
More than 14K LI residents in mortgage delinquency
More than 14K LI residents in mortgage delinquency
9811 Copper Creek Drive, Austin with Tides Equities’ Sean Kia and Ryan Andrade (Tides Equities, Google Maps)
Tides Equities snags another Texas multifamily property
Tides Equities snags another Texas multifamily property
Liz Nunan, ceo, Houlihan Lawrence (Houlihan Lawrence, iStock)
Lower Hudson Valley notched home sale growth in 2021
Lower Hudson Valley notched home sale growth in 2021
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...