Confused about FHA's Dispute Rule

[AshCas]

I've read about FHA's new rules concerning disputes:

If the credit report reveals that the borrower is disputing any credit accounts, Manual Downgrade of a TOTAL Scorecard Approve/Accept recommendation is not required if:

1. The disputed account has a zero balance

2. The disputed account is marked as “paid in full”, or “resolved”

3. The disputed account is both

a. less than $500, and

b. more than 24 months old, based on the date of dispute

I have a collection on my reports that has a zero balance and is marked as PIF..  It was more than $500.  Do I have to meet all 3 requirements or just one of them in order for me not to have to get the comment removed?

[Anonymous]

Apparently they dont want any thing disputed on your CR. I just got denied with a dispute on my CR and i have pretty good scores.

[AshCas]

you got denied a mortgage because of a dispute comment?  Usually (from what I understand), they just ask you to get it removed...

[bbb3601]

We are .closing tomorrow with 2 accounts in dispute, but marked with 0 balance. As long as your account in question meet one of the criteria set you should be fine. The accounts in question were never mentioned by our LO, Processor, UW, or Lender............but as always YMMV

[Walt_K]

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@AshCas wrote:

I've read about FHA's new rules concerning disputes:

If the credit report reveals that the borrower is disputing any credit accounts, Manual Downgrade of a TOTAL Scorecard Approve/Accept recommendation is not required if:

1. The disputed account has a zero balance

2. The disputed account is marked as “paid in full”, or “resolved”

3. The disputed account is both

a. less than $500, and

b. more than 24 months old, based on the date of dispute

I have a collection on my reports that has a zero balance and is marked as PIF..  It was more than $500.  Do I have to meet all 3 requirements or just one of them in order for me not to have to get the comment removed?

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I believe it is 1, 2, or 3.

[Anonymous]

I got a letter of denial.  When i called the LO he stated that this was the reason i was denied.  He said to get it off and i would be approved. Only problem is its LVNV.

[jordanmedical]

For LVNV, your best bet is the BB. They tried that dispute comment stuff with me and now the TL is deleted along with their dispute comment.

[Anonymous]

Do you mean BBB?

[jordanmedical]

yep

[bbb3601]

very easy to get lvnv off your report. BBB has worked for many. I paid in full and disputed........they told me over the phone they wouldn't respond if I paid in full