If the Great Recession has damaged your credit score like so many of us, getting a home mortgage has been nearly impossible. But—Wells Fargo recently changed their policies to allow people with credit scores as low as 500 to get loans or home mortgages.
Although—to minimize risk—they’re requiring a higher down payment for those of us who are credit-challenged.
Will the other three big lenders (US Bank, Chase and Bank of America) follow suit? While it’s too early to tell—my guess is yes.
Loosening credit: 1 down and 3 to go
1 in 4 homeowners with mortgages now owe more than their homes are worth nationwide, said CNN in a recent story. In hard hit states like Nevada, the number climbs to 2 in 3. The number in Oregon isn’t known (at least by me) but it wouldn’t surprise me if we’re similar to the national average.
I speak to homeowners every day, and it’s common for their mortgage amount to play a big factor in their plans. It’s still possible to sell when you’re underwater or upside down through a short sale. It’s a little more work, but it can be a good solution.
It's better to be above water.