carusobonnie... Your 1997 bankruptcy should not be a factor in underwriting and should be showing up on your credit report. Generally, bankruptcies drop off of your credit report after ten years. As for the collections, they are from eight years ago and I am surprised they are still on your credit report. Underwriters generally look at what you have done for the past two years on your credit report. Your credit scores are okay. I think you need to contact a new lender. Based on what you have mentioned in your question, 8.75% is awfully high.

None of the items you mention should even be on your credit report anymore, they are too old. The rate depends on a lot of factors that you don't mention, but 5% would probably be too high. If you are in TX, contact me and I will try to be of more assistance.

None of the issues mentioned above should affect at all. If you can proof your income and your loan to value is acceptable you should be able to get and FHA loan with Rates in the low 4's, If your debt to income ratios are under 45% you should be able to get a conventional loan in the High 4's depending on your loan to value. Please note that FHA will have mortgage insurance and Conventional over 80% will have mortgage insurance as well.Radian one of the nations largeest mortgage insurance providers has lowerd thier credit score requiements to 620 for loans over 80% ltv but lower than 95%.Also depending on your and you husbands ages and value of your home you may qualify for a reverse mortgage.