The Real Deal New York

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%
November 16, 2018 12:00PM

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