If you are applying for a USDA mortgage loan and you have ever disputed a credit account, there are some important points to understand. Depending on a checklist of three items, disputed accounts may not affect your ability to qualify for a USDA mortgage.

So, it’s important to understand that whether your dispute is resolved or not, the account will be excluded by FICO in calculating your credit score. So, when your credit report is run, the credit score may not be accurate because the disputed account(s) have been left out of the calculation. For that reason, we normally have to take a second look at your credit report. However, if the disputed account(s) has a zero balance, or is marked as “paid in full” or “resolved,” or has a balance of less than $500 and is older than 24 months the disputed account will most likely not be a problem in approving you for a loan.

What can you do? If you have disputed credit accounts in the past, before you apply for a mortgage it may be a good idea to get a copy of your credit report and see how the account appears on your report. Also, if you know you have disputed credit accounts, it’s a good idea to discuss that fact with your loan officer before they pull your credit report so that you can together discuss whether a USDA loan is the best program for you based on your credit history.