Self-Employed Income Verification Question

[Mike]

Hello All, Thought I would say hi before I jumped into the questions I have. I am self employed with $5000 per month income. My partner is also self employed and makes around $5000 per month. Our combined household expenses are $2200 per month. My FICO score is 606 and his is 584. I have $7200 in debt at the moment which will be reduced to $4500 by Oct 2008 when my report adjusts. My credit score may be around 680-700 by Oct 2008. My partner owes around $45k in debt from his divorce where 4 vehicles were repossessed and medical bills. We would like to get our documents in order within the next 12 months in order to apply for a Full document loan. I would like to be the one applying for the loan and my questions are: 1. Will I have to state full household expenses or half our household expenses in my Pandamp;L Statement? 2. My gross income is around $65k this year; will the lender use my gross income or my net income after expenses? 3. We have a joint savings account; will all the money in our savings account be counted or just half? Should we take his name off? 4. Will business expenses count in the calculation of DTI? 5. Is 12 months of bank statements enough? Edit: We are in NJ looking to buy in PA. Properties within 60 - 99K range. Thanks, Jodi