Depending on the LO and the lender, I'd say you have a decent chance, my experience with Wells Fargo however, was not so great, you might try Prospect Mortgage or a broker. Underwriters like to see downpayment funds saved up over time. Default rates are much higher when the buyer lacks emotionaly attachment to the funds, such as when they are a gift.
Your lowest hanging fruit in terms of getting your scores up even further, is to lower your utilization ratio as much as you can. Less than 20% is a good target. Try and get those collections removed entirely. Try writing goodwill letters to your student loan companies and the collection company you paid off. Also try offering to pay for delete on the other collection. Make sure you indicate that they are not a dispute, because if you have open disputes, you'll automatically be declined for an FHA backed loan.
The gift was actually 3k... I already had $2600 in my acct already. In the last 2 months I've had 6+K in my checking account. The application is being sent to the processor. Should i call the collections agency and attempt to clear it off? Do you think its too late?
if the lender recorded the denial with hud, another lender might have a hard time doing this.
to prevent 'lender shopping' hud says that one fha underwriter cannot overrule another fha underwriter.
if there was a material change to the file, then they CAN overrule.
you need to ask your lender if you can withdraw the loan or if they can just suspend the file and not record the denial.