On the mortgage, not on deed. We need to purchase?
Good afternoon. Based on the details you have given so far I don't see a reason why you and your husband could not qualify for the loan with out your father in Law. Their are three basic items that go into an approval: Income, Equity and Credit. If you have at least a 620 mid score, a debt to income ratio...

if i have an arm and am underwater on my mortgage what should i do
My best advise is to check the Fannie Mae or Freddie Mac websites to see if your loan is owned by them. They have the HARP program that will allow you to refi even if you are underwater. Most of the time with no appraisal needed. If you need help doing so feel free to give me a call and I would be more then happy to...