Is this true?

[working-hard-atit]

I read that if you are planning to apply for a mortgage that mortgage lenders may deny an application if there are account with a "dispute status".  If so, how long does it take for your CR to stop showing the disputes?  I promise I just feel like throwing in the towel, it's seems like there's something new holding me back every day. 

[tooleman694]

They wont deny you but in most cases they will make you get them removed. Your LO can actually do this for you with a rapid rescore.

[basballguy]

disputes are a pain in the rear.  But with a little bit of effort you can get them removed......and help from tooleman694. 

[ShanetheMortgageMan]

Each loan program has different guidelines regarding disputed accounts.

Fannie Mae & Freddie Mac loan programs will require the disputes to be removed in order for an approval to be issued. 

VA mortgages don't require disputed to be removed.

FHA doesn't require disputes to be removed, but if the disputed accounts don't meet any of the below 3 requirements, then the loan needs to be manually underwritten to get approved... which for some people, depending on their overall loan file, may not be possible (for example someone who has higher debt ratios than 31% housing & 43% total would be more difficult to get approved with a manual underwrite).

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

About a year and a half ago there was a very lengthy discussion on disputed accounts, their impact on qualifying for a mortgage, and the easiest way for a consumer to remove the disputes themselves.   It can be found at http://ficoforums.myfico.com/t5/Mortgage-Loans/Best-Way-to-Remove-quot-Account-In-Dispute-quot-for-M...