How is PMI determined and best lenders to work with in WA state

[Chelsae Roach]

I will try to keep this brief. I am looking for guidance on best lenders in Wa State. My Husband and I are looking to buy a home in the under $400,000 range (ideally something that we can rehab and house hack). In our area it is slim pickings but we have seen a few gems come and go in the last few weeks and feel like we can find the right property if we can get financing. 

We were trying to get a conventional loan through Guild Mortgage, but yesterday I received the email that we didn't qualify due to the PMI they quoted us being an extra $2000 per month. Specifically this is due to our credit scores hovering at 638 (my husband's is at 639). I know my credit went down because I had two lines of credit that I paid off entirely, and decided to close before going abroad in 2021. Kicking myself now, but what's done is done. I realize now we need to work on our credit, which we will do in the best responsible ways over the next few months.

In the meantime... Real estate investor "black belts" out there; do you think it is possible to get a bank to lend to us without quoting $2000 a month in PMI due to our credit scores? We are a double income earning family and bring in just under 10,000 a month after taxes. I thought we would qualify for an FHA loan (first time homebuyers here!), however it seems we won't because my husband's W2 comes from the cannabis industry and the federal reserve sees that as a risk.

Basically, I am looking for a good lender where we might secure a conventional loan with a more conservative PMI that wouldn't blow our budget out of the water. Any leads, advice, contacts are super appreciated. I am trying not to be discouraged and to embrace the mindset of looking at this from another angle, figuring out a more creative solution. Thank you in advance for your time!

-C