Looking to start my journey into homeownership. Would I qualify?

[Finance805]

Hello All!  I am looking to buy a home either late this year or beginning next year.  I wanted opinions on whether or not I would qualify for one and what steps I need to take to better qualify me for a loan.

• Credit: The only Fico score I have is Equifax which is a 664 as of 6/17/2012.  My AAoA is 4 years 7 months and I have 4 inquiries in the last 2 years (8/31/10, 10/26/11, 10/26/11, 11/14/11).  I do have 3 negatives on my report which will probably be my downfall:
• Collection with AMEX that has been paid off.  DoFD – 03/2008
• Charge Off with Chase Bank that went to a CA.  DoFD – 11/2007
• Collection with CA that was settled for less.  DoFD – 12/2007
• Income: My gross income for 2011 was around $68k.  I expect this year to be closer to $72k
• Source of Income: I am salaried and paid bi-weekly. 
• Monthly Debt Payments: I have about $3k in credit card debt which I plan to pay off within the next couple months.  I also have a car loan with a balance of $15k and monthly required payments of $300 although I try to pay more per month.
• Employment: I am fully employed in a stable job.  I was there as a temp for 4 months and I have currently been there as a full time position for 19 months.  I have been in my field for 7 years, including College working as an intern.
• Assets/Reserves: I currently have about $5k saved up.  I am hoping to save $2k/month until I buy so about 6-7 more months ($12-14k)
• Location: The city I am looking to buy into is Camarillo, CA located in Southern California about 45 minutes northwest of Los Angeles.  Zip Code is 93011
• Property: I am looking at a Town House with 3-4 Bedrooms and 2-3 Baths.
• Value: Looking at Zillow and other websites these townhouses run about $300k +- $25k
• Occupancy: This will be my primary residence.
• Transaction Type: Finance for house

Other Notes:

As I stated earlier, I am a first time homebuyer; therefore, I hope to qualify for the 3.5% or about $10.5k down payment.  Does the down payment include all closing costs or are there additional costs in addition to it?

I am hoping to look at a local credit union that I have been banking with for a while now.

I am concern about my negative items on my report and my short time frame with job.  However, as I stated earlier, my job is very stable with lots of room to grow.

If there are any additional information required please let me know.

Thanks!

[hippychic823]

I don't know how to calculate DTI (lots of folks on this forum know how to do this though) so I'm not sure about your DTI. But your score is very close to mine and I have 3 paid off medical collections on my CR and I was approved for FHA which allows you to put 3.5% downpayment and also allows sellers to contribute to your closing costs...sorry I can't help more cause I'm fairly new to the boards and am a first-time homebuyer myself (currently in the process of purchasing my own home) but hopefully someone with more knowledge and experience will chime in and calculate your DTI and give you a better idea. Good luck on your journey to home ownership

[Finance805]

Thought I should add: the place I am looking at does have Homeowner Association fees which are $200/mo