I'm nervous. We are in a situation with our landlord, where they are requiring us to vacate since we aren't renewing another year lease. We have a contract for closing on July 25th and our tenancy expires on July 31st.
We either go into UW today or tomorrow. I got the MB the last piece of info, this morning. I can't remember which lender but I think she said Security. Maybe Security National.
Here is our situation:
Husband is a full time (36 hour) RN. Same job for 2 years but in the same field 5 years. He also has a PRN job but it is only a year old. I believe our income was figured around $72k. The MB did all of the verifications of salarly/employment and came to the $72k figure. Husband does some OT but it is random and not guaranteed. MB said our income was figured by averaging the last 2 years. I am a SAHM, so no income.
The MB provided us with the credit report she pulled for pre-approval. His mid score is 696. Mine is 673. I told them that I don't need to be on the loan because I have one 90 day late that is 3 years old and two charge offs that will fall off in about a year. The charge off date of last activity is 2001 but didn't report until 2005. While those shouldn't hold anything up, I don't want to take a chance. My husbands credit report has no collections, no lates, no charge offs, nothing. His only ding is very high utilization on a few cards.
Our front end DTI will be around 19%. This is where I get worried. Our back end will be 43%. We both have student loans, one car payment and credit cards. The PITI is currently figured at $1150. Sales price is $152k and we hope to finance the 3.5%. Currently, we pay $1295 in rent and have done so for 25 months.
The house is USDA eligible. Our income is USDA eligible. It is a FTHB single family purchase. We have around $2500 in reserves, not including the $1100 currently in earnest. The sellers are paying part of the closings costs. Right now, we are looking at bringing around $100 to closing, outside of the earnest money.
We planned on paying down the CC debt a bit more but luckily a great house came up, just as we got our notice to vacate. My husband wanted to take the chance and that is when we found out about the USDA program. The MB has two years worth of tax returns and W2s, two months of checking and savings acct info, signed docs from us, the contract and as soon as the escrow check is cashed, I will get her those copies.
I know that the prefered DTI max is 41%. The MB does seem optimistic that we will be fine. It's just me stressing out because we are now in a time crunch.
So, do we sound good? Maybe?
This is going to be a long week. 
Oh and I had 5 medical collections on my credit report from about 5 years ago. I never knew they were there until I checked my report in 2008. They were all tiny and I paid 4 of them.
There is one still unpaid for $18. I still have not been able to find out who owns it. I thought about disputing it but I'm not touching anything on our credit reports right now. We also have stopped using credit, won't be applying for credit, nothing. All cash until we have keys and a funding number.
Either way, I have some old bumps and don't want them hindering us, so I told her to just leave me off the loan. That way they are only looking at my debts. We are in Texas. The 43% does include both his and mine debts.
