Mortgage Approval with Disputes on Paid/Closed accounts?

[Anonymous]

Hi Everyone, 

I have been carefully rebuilding my credit since a short sale four years ago.  We have 10% for our down payment on an FHA loan.  Our DTI ratio is very low.  My credit score is around 650 and my husbands in 720.  I have three accounts that are paid in full, but closed that have disputes on them.  Should I try to have the disputes removed now, before the account goes to underwriting, or would it pass manual underwriting as the accounts are paid in full and closed?   We also have $50 K in reserves from our 401K which I would rather not touch.  We have one thirty day late from 19 months ago that I have tried to GW with no success.  I have paid collections, but no open collecitons or judgements.  Any help would be greatly appreciated!

THANK YOU!

[Anonymous]

*Bump*

[LondonMassey]

I believe I read that paid accounts with dispute comments are allowed.  The dispute comments concern unpaid accounts because when the accounts are being disputed it can alter the scores.  Of course, that would be just for FHA and not whatever requirement layer your lender has regarding the issue.

My lender had me remove all comments, but that was when the FHA policy was set to change in July, which didn't happen. 

[germaine47]

During UW I was required to either remove the dispute from the tradeline or pay in full and close the account.  I disputed the balance reported in which they finally updated the correct balance but refused to remove(ispute)  in a timely manner.  I thought it would okay to close with the dispute as long as payments was current but I was wrong, I paid and closed the CC.  I would suggest that you start working on the disputes now for just in case it would make your UW smoother.