Wells Fargo lowers credit score minimum

The nation’s largest residential lender has loosened its standards on residential mortgages, which is welcome news for many South Floridians.

Wells Fargo began writing Federal Housing Administration-backed loans for borrowers with credit scores as low as 600 last month, the Palm Beach Post reported. Before that, the lender’s limit was 640. Wells Fargo did not publicly announce the change.

Fannie Mae has also made adjustments that should allow more prospective homebuyers to qualify for financing. It upgraded its automatic loan review software to make a better distinction between a foreclosure and short sale.

More lenders are expected to follow Wells Fargo and lower their credit score minimums, Jupiter-based Family Mortgage president Skip McDonough told the Post. [Palm Beach Post] — Eric Kalis