Can I Qualify For FHA Loans With Credit Disputes?

There are strict rules in qualifying for FHA Loans with credit disputes during the mortgage application and mortgage approval process. Credit disputes is when a consumer will contest and dispute a derogatory credit item and/or tradeline from the credit report in hopes of getting it corrected and/or deleted off their credit report.  For example, if John Doe has a charge off on Capital One Credit Card on his credit report and wants it deleted off his credit report, he can try to get it deleted off his credit report by disputing the Capital One Credit Card charge off to the three credit reporting agencies whether the charge off is reporting it correctly or the charge off is not correct.  Many consumers do credit repair or hire credit reporting companies to delete derogatory items off their credit reports. Credit repair does work and collection accounts, late payments, charge offs, bankruptcies, foreclosures, and tax liens can be removed off a consumer’s credit report.

Does Credit Repair Work?

There are thousands of credit repair companies in the United States.  Like many industries, there are reputable credit repair companies and there are less than reputable credit card companies. Credit repair does work and anything a credit repair consultant can do, a consumer can do it themselves.  However, if you are busy and cannot diligently devote your time in doing the credit repair yourself, hiring a reputable credit repair company may be the best for your interest.  I have personally seen judgements, bankruptcies, foreclosures, charge offs, collection accounts, tax liens removed from consumer’s credit reports in a matter of a few months.  I do not know how some of these credit repair companies do it, and I do not care to know but they can get derogatory credit items removed off the consumer’s credit reports.  If you are looking for a reputable credit repair company that can remove your derogatory items in a matter of a few months, contact Jesse Smith of Credit Fix Advisors  at 815-210-1581.

FHA Loans With Credit Disputes On Medical Collections

If you are a FHA Loan mortgage borrower, you can qualify for FHA Loans with credit disputes on medical collection accounts.  FHA treats medical collections differently than non-medical collection accounts.  You can have as many credit disputes with uncollected collection balances and still qualify for FHA Loans With Credit Disputes.

FHA Loans With Credit Disputes On Non-Medical Collection Accounts And Charge Offs

You can have credit disputes on non-medical collection accounts on zero balance collection balances.  FHA Loans With Credit Disputes will allow up to a maximum of $1,000 of unpaid collection account balances.  If the credit disputes on the total of the unpaid collection account balances exceed $1,000, you need to have the credit disputes retracted off your credit report.  If you have charged off collection accounts, you need to have the credit disputes on the charge offs removed in order to proceed with your mortgage application and mortgage approval process.

Credit Scores And Retracting Credit Disputes

If you retract your credit disputes from the three credit reporting agencies, the chances are that your credit scores will drop.  Keep this in mind and be prepared to have a drop of your credit scores prior to applying for a mortgage loan.  Those with many credit disputes should consider retracting their credit disputes off their credit report before even considering purchasing a home or having a real estate purchase contract.  Having your credit scores drop will not be a permanent issue and credit scores can rebound a few months after the credit disputes are retracted and removed off your credit report.

The information contained on Gustan Cho Associates website is for informational purposes only and is not an advertisement for products offered by The Gustan Cho Team @ Gustan Cho Associates or its affiliates. The views and opinions expressed herein are those of the author and/or guest writers of Gustan Cho Associates Mortgage & Real Estate Information Resource Center website and do not reflect the policy of Gustan Cho Associates Lenders Network, its officers, subsidiaries, parent, or affiliates.

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