You need a 580 credit scores to qualify for FHA LOANS with 3.5% down payment on purchase under HUD GUIDELINES. HUD is the parent of FHA. Outstanding collections and charge offs accounts do not have to be paid to qualify for FHA LOANS. However, you do need timely payments for past 12 months in order for you to get an approve eligible per AUS FINDINGS. From what you stated you should qualify for FHA LOAN as long as you have been timely on your payments for past 12 months and you have qualified income and meet debt to income ratios requirements. Please don't hesitate to ask any other questions that I did not answer in this message board.
Gustan Cho NMLS 873293
A Division of DAS ACQUISITION COMPANY NMLS 227262
The Gustan Cho Team at USA MORTGAGE