Wells Fargo announced that effective January 15, 2011, they will accept Federal Housing Administration (FHA) mortgages for borrowers with credit scores as low as 500. For borrowers with credit scores 500-579 a 10 percent down payment is required and the down payment may not be a gift or be part of a down payment assistance program. For borrowers with credit scores 580-599 a 5 percent down payment is required and the down payment may not be a gift or be part of a down payment assistance program. Borrowers with a credit score of 600 or higher are required to have a 3.5 percent down payment and a gift is acceptable. For all borrowers, seller concessions are limited to 3 percent.
Federal Reserve Releases Publication on Credit Decision Notices
New rules issued by the Federal Reserve Board under the Truth in Lending Act that took effect January 1, 2011, require most creditors to provide consumers with a 'Risk Based Pricing' notice when consumers are offered credit on terms that are less favorable than the terms offered to other consumers due to adverse information in their credit report. A "risk-based pricing notice" or an "account review notice" will not include a credit score, but will include information about how to obtain a free credit report from the credit bureau identified in the notice within 60 days of receiving that notice. Today, most consumers must pay a fee to obtain their credit score but, as an alternative to providing risk-based pricing notices, creditors can choose to provide consumers who apply for credit with a "credit score notice" that includes a free credit score and information about their score. You can check the accuracy of your credit report by obtaining a free annual credit report, which is available to all consumers regardless of whether they have received a notice.
Federal Reserve publication "What You Need To Know: New Rules about Credit Decisions and Notices"
New rules issued by the Federal Reserve Board under the Truth in Lending Act that took effect January 1, 2011, require most creditors to provide consumers with a 'Risk Based Pricing' notice when consumers are offered credit on terms that are less favorable than the terms offered to other consumers due to adverse information in their credit report. A "risk-based pricing notice" or an "account review notice" will not include a credit score, but will include information about how to obtain a free credit report from the credit bureau identified in the notice within 60 days of receiving that notice. Today, most consumers must pay a fee to obtain their credit score but, as an alternative to providing risk-based pricing notices, creditors can choose to provide consumers who apply for credit with a "credit score notice" that includes a free credit score and information about their score. You can check the accuracy of your credit report by obtaining a free annual credit report, which is available to all consumers regardless of whether they have received a notice.
Federal Reserve publication "What You Need To Know: New Rules about Credit Decisions and Notices"