The word on the street two months ago was that Wells Fargo was requiring 25% of the units in a new development be in contract or closed before they would fund the first loan. From a plugged-in tipster yesterday:
Wells Fargo had a guideline change this morning, they are now at 50% pre-sale [required].
Not quite a rumor, but yet to be officially confirmed.
UPDATE: Confirmed (“Wells Fargo has formally raised their new construction pre-sale requirement to 50% from 25% placing them on par with Chase and B of A”) and effective December 15th.
∙ Developers In San Francisco Getting Squeezed From Both Sides [SocketSite]