Mortgage With Disputed Accounts
A dispute on your credit report does not always stop a loan. What matters is the type of account, whether it has negative history, and the loan program.
What you may need
Each item below is a rule of Fannie Mae, FHA, or at least one other program we offer.
- On a Fannie Mae loan, nothing more if the automated system approves with the disputed accounts included.
- Proof, such as canceled checks, to disprove negative information.
- On a manually underwritten FHA loan, a letter explaining the dispute and documents that support it.
- For identity theft on FHA, a police report or documentation from the creditor.
- Payments on disputed accounts that are yours counted in your debt-to-income ratio.
- On FHA, a manual review when negative disputes total $1,000 or more.
Approved with the dispute
Medical disputes excluded
Only some disputes count
Proof can clear errors
Identity theft excluded
Rules vary by program
How Disputed Accounts Affect A Mortgage
It depends on the loan program and whether the disputed account shows negative history.
Fannie Mae’s automated system scores your file with the disputed accounts included first. If it approves that way, no further documentation or action is needed. If it only approves with them left out, the lender must look into whether you are responsible for the accounts.
If the accounts are not yours, supporting documents let the loan move forward, and proof such as canceled checks can disprove negative information. Lenders do not have to investigate disputed medical accounts. Working through other credit issues? See our collections and charge-offs page.
On FHA, only disputed charge-offs, disputed collections, and disputed accounts with late payments in the last 24 months count as derogatory disputes. Disputed medical accounts and disputes from identity theft are left out of the total.
Why choose Saxton when your credit report shows disputes
For borrowers with a dispute on their credit report who want to know if it will hold up the loan.
Approved With The Dispute
On a Fannie Mae loan, if the automated system approves using the disputed accounts, no further documentation or action is needed.
Medical Disputes Excluded
Fannie Mae lenders do not have to investigate disputed medical accounts, and FHA leaves disputed medical accounts out of its total.
Only Some Disputes Count
On FHA, disputes on zero-balance accounts, accounts with late payments 24 months or older, or accounts that are current and paid as agreed do not force a manual review.
Proof Can Clear Errors
If you can document that negative information is wrong, such as with canceled checks, a Fannie Mae loan can move forward through the automated system.
Identity Theft Excluded
FHA leaves disputed accounts from identity theft, credit card theft, or unauthorized use out of its total, with a police report or documentation from the creditor.
Rules Vary By Program
At least one VA program does not require a manual review for a disputed account with a zero balance, while at least one jumbo program follows the automated system and agency rules for disputes.
Hear From Homeowners Like You
Frequently Asked Questions
Straight answers about disputes on your credit report.
Yes, depending on the program. On a Fannie Mae loan, if the automated system approves with the disputed accounts included, nothing more is needed.
Fannie Mae lenders do not have to investigate disputed medical accounts, and FHA leaves them out of its total.
Disputed charge-offs, disputed collections, and disputed accounts with late payments in the last 24 months. If their combined balance reaches FHA’s limit, the loan needs a manual review.
On a Fannie Mae loan, supporting documentation lets the loan move forward through the automated system.
On a Fannie Mae loan, the loan cannot go through as an automated approval, but it may be manually underwritten if it is eligible.
Yes, if the accounts belong to you. They must be included in your debt-to-income ratio on a Fannie Mae loan.
At least one VA program lets the lender consider a veteran’s claim of a legal defense on an unpaid debt, except when the debt has become a court judgment.
Find out what you qualify for
Tell us what is disputed on your credit report and what you want to do, and we will show you the programs that fit.
Get Pre-QualifiedLoan amounts, rates, terms, and eligibility are subject to credit approval, asset and income verification, appraisal, and program guidelines. Draw requirements and variable rate terms apply. Program availability varies by state. Not all applicants will qualify. Saxton Mortgage, LLC is an Equal Housing Lender.