Here's a little background on my situation. Preapproved for VA loan April 1st with the condition that we sell our current home (has VA loan and needed to sell to release - no back to back close) Our loan officer is the SR VP of Lending (local bank) and she said everything in our file is good. She has assured me everything will be fine and not to stress. (670/685 mid score for me and my husband after selling our house - our current DTI is 5% with our new house it will be 26%) Being she is the SR VP - I trust she knows what she's talking about since shes been there almost 15 years. We met with a builder April 2nd to get things started - paid $5,000 in earnest money; had to sell the builder our land (12 acres) in TX builders cannot build on land they do not own.Sold our house and closed August 1st - hot market here and sold faster than we thought but satisfied the condition.
Our family of 4 and our dogs have been living in a 2 bedroom apartment ever since. The house will FINALLY be finished ands ready to close next week. Our loan has been in underwriting for almost a week. I'm panicking - here's the history on our credit. A relative that lived with us in 2006 stole our identity and racked up $3000 in credit cards. Being young and not knowing how this would really affect us - so we let it sit on our credit. So these are now collections (reporting closed to Experian, Equifax but open on Transunion; 1 account is a closed charge off) My husband is a disabled vet and has some outstanding medical bills that occurred before he was approved disability that we are still trying to get the VA to cover (maybe $500- these accounts are closed collections as well) The most recent collection - medical- was in 2011. A late mortgage payment over a year ago that was at the fault of the mortgage (fighting that now - this is on the house we sold). We have re-established our credit - we both have credit cards we got in December (one has a limit of $1000 with $0 balance; one has a limit of $1300 with a $47 balance) We have a loan with our bank that is almost a year old - it is a 2 year loan - almost halfway paid off; I have student loans reporting ontime payments for over a year. Will this be a problem? We are all about paying off the collections at closing (I've heard paying them off will re-age and drop my score and I DO NOT want that to happen while we're in underwriting - this is the main reason I haven't paid them yet. I paid about $800 off last year before applying for the loan and noticed this hurt me a little so I stopped there).
Does anyone see this deal falling through in underwriting? We have been told since Thursday "We should hear something back today" and everytime I ask its that the UW is busy but looking at our file. I'm so stressed - we have sacrificed so much - the house we had, our land with our livestock, our $5,000 in earnest money and now the fact that we will have to start over and figure out living arrangements in a week (our apartment is re-rented and we have to be out next weekend) AHHH the stress of this!!! Any advice or opinion is MORE than welcomed!!!
Starting Score: 547 May 2013 to 698 December 2015 
Thank you soo much! We're suppose to hear back today- hopefully!! Our loan processor said no news is good news and that they may not need a lot of explanation on things - the LO and processor got explanations most everything before sending it to the UW. Kepping our fingers crossed!!!