IONEGARM the lenders are actually the ones overlaying the guidelines on top of the FHA. In fact FHA is understaffed like you said but the government does want more people to buy. Yet the government, (try as they might) cannot strongarm the lenders into making the loans. (at least not yet)
You are correct in the sense that the LENDERS are the ones pushing back and they are the ones ultimately originating and servicing the loans. Now on FHA loans the government actually insurers 25-35% of the loan and the lender does take the ultimate loss on the difference for a default. You are correct about the 620 min FICO overlay.
Also with regards to the spouses score. So the spouses credit score is checked BUT does not have bearing on the loan. HOWEVER if the spouse is carrying debt that debt will indeed be used for the qualifying ratios for the loan.
Also the 3.5% down payment CANNOT come from the seller. The seller can credit the buyer for closing costs. Alternately the 3.5% down can be gifted to the buyer but it does have to be from a relative.
This is my understanding and I am not a mortgage broker so feel free to correct me.
