It's amazing how hard it is to remove a dispute that you place on an account. It still amazes me how easily you can dispute something but voluntarily removing it has to be such a chore. I've seen borrowers forced to jump through some crazy hoops just to get it removed.
I agree with wetdawgs, approvability is not the same as affordability. As for the amended return, definitely speak with another qualified LO in your area. You should not have an issue getting a better approval if you find the right LO and lender.
I'm sorry your so stressed, purchasing a home is exciting and stressful but hopefully you found a good loan officer to walk you through the process and keeps you well informed. Andrew as always gave the straight answer, there are too many unknowns for us to give an opinion on what is going on with your particular loan but again your loan officer should be walking you through this.
July 03 2010??
You can only have one or the other as Aaron mentioned. Homepath itself is offered by most lenders while the Homepath Renovation has much less lenders and probably even fewer that know how to do it well. If Homepath Renovation is the way you really want to go I would look at Homepath.com and select Homepath Renovation lenders in your state. There are more lenders available than listed but typically the ones listed are more familiar with the process than most. My opinion anyway.
You should be able to get around this condition. Wetdawg is right, you should be able to show the taxes for this time period. it's a generic request of an underwriter but one they can easily modify with 1.5 years at current employer.
I'm trying to understand as well since a lender credit would not be considered one of HUD's "Acceptable Sources of Funds" for minimum down payment requirements.
It may not be an oversight. I can't remember the exact date but FHA loans originated prior to 2000 were under a different rule. Heck even Private Mortgage Insurance prior to July of 1999 did not have to remove the insurance.
Are you asking about the earnest money deposit? That has nothing to do with the amount you will be putting down towards the actual purchase of the house which in this case sounds like you are putting down 80%.
Talk with a loan officer in the area, there are options and they can guide you a little better once they know the whole scenario.