Are LOE's always necessary?

[AshCas]

We're getting ready to apply for our first mortgage (probably going FHA route). 

Our scores are way above the minimum of 640, and currently have no outstanding debt of any kind.  We have no auto loans, no major credit card debt (we pay in full each month), and only my husbands student loans, which have never reported a negative. I do have an old paid collection on my report from 2008 - it's the only negative on my report.  I'm curious if I'll have to write an LOE for this or not.  My credit has been perfect since!

[boomhower]

Most likely.  Pretty much everyone has to write an LOE for something.  It's just paperwork, nothing to worry about.  Just something to stick in your file.

[Anonymous]

Maybe not. DH had one collection on his report when it was pulled by our bank. It was subsequently removed but they didn't pull his report again for the updated status. We closed a couple days ago and didn't have to turn in a LOE for anything.

[JM-AM]

It is all underwriter descretion. But is not something to stress and worry about.

[Familywantsahouse]

We have a 1200 6.5 year old CO and loan officer has not yet mentioned a LOE...