Mortgage Loans

[wednesdayaddamsd]

Does anyone have any recent experience with USDA Direct mortgages and disputes on your credit report? I have a few old credit cards that are closed, but they say "account disputed by consumer after resolution".

If the account is at a zero balance does the dispute comment still need to be removed for USDA Direct?

[Booner72]

No dispute comments.  Good Luck - call the 3 credit bureaus and get the comments deleted.

[wednesdayaddamsd]

Hi Booner,

Thanks for the response. I take it you have/are in the process of getting a USDA Direct loan?

)

[Booner72]

.No, I'm in the FHA process.  But I've read tons of posts around here and I'm pretty sure NO disputes means NO disputes.  I could always be wrong tho.  Your LO should know.  Another myfico member recently had his mortgage denied because of disputes ON AN OLD PAID ACCOUNT and the LO couldn't do anything to help him.  He had to go to another bank.  I wouldn't risk it is all I'm saying.  I have about 8-10 things I am going to dispute the day after my mortgage closes.  I can't do anything about it now or I won't get a house.

[ShanetheMortgageMan]

Because USDA Direct does manual underwriting I don't think disputes would be an issue - but call your USDA office where you are applying and they'll let you know.

[dpage]

Hello,

My wife and I just closed on a home a little over a month ago with a VA loan and I had 2 or 3 disputes on my reports and nothing was ever said about them.

[wednesdayaddamsd]

Thank you for all of the responses. Especially from those who have gone through a Direct loan. I hate to stir up the pot getting the disputes removed because I'm afraid it will lower my credit score. Probably not an issue, but who wants to spend all day on the phone with the credit bureas? Lol.

Thank you everyone!

[wednesdayaddamsd]

To anyone who was following this thread: I just called my local USDA Direct office, and the man said that dispute comments for accounts that are paid in full over six months ago do not have to be removed.

They only worry about disputed accounts paid within the last six months.

[independentlady7]

Thanks for the info Wednesdayadamsd.

Guess I need to make a call to the CB's because I have a dispute comment (processed and closed) on Midland that was paid in April 2011.

[wednesdayaddamsd]

Good luck Independent. I have found that simply calling the USDA office to ask generally is the best idea. There is a lot of misinformation out there and unless someone has been through this process, they generally don't know about USDA Direct.  I've had real estate agents who don't even know what this program is!

I know it's hard to call USDA with questions, as I hesitate to "bother" them myself, but you'll be glad you asked. I wish you all the best with your home purchase!