I went FHA and was told NO disputes. Yes, they would put me in manual UW and, yes, I'd be turned away.  I wouldn't want to go in with artificially inflated scores anyway as they do pull credit multiple times in the process (mine will be 3, including right before close).

I had to have the disputes removed off my reports before approval. 

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Starting Score: 504

Current Score: EQ FICO 819, TU08 778, EX "Who Knows?" Quizzle 756
Goal Score: All Scores 760+, Newest goal 800+
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I was told by my mortgage broker that I cleared automated and received an approval through DU however I have a current dispute with Experian which is my low score.  I also have dispute comments on Equifax and TU.  He wasn't concerned at all about the dispute or comments but I guess it's possible this could be an issue when my file is reviewed in underwriting. 

We can all tell you that the process is one way, but who really knows? I had one item in dispute when I closed in Sept.