What are my options?

[bounceback]

Due to bad choices, my credit score was in the mid 500s 18 months ago. Now that I've been pretty diligent about paying everything on time for the last 1.5 years, my FICO EQ score is 628 and my FICO TU is 646. I still have about 3 paid collections in my report. 

I've also saved enough for an FHA level down payment (3.5%), can I think about applying for an FHA loan? Do I even have a chance? A friend of mine suggests a mortgage broker...what do you guys think?

thanks much in advance!

[Anonymous]

I think to make your chances best, you should wait until you have 2 years clean credit as well as get your midscore up to around 650. 
Most lenders are looking for 640 minimum score and with banks now requiring credit to be repulled at closing, it is common to see a score drop by close due to the mortgage inquiry so you want to have some wiggle room.  There are still lenders doing 620 loans, but they can be tough to get through approval and may be more so in the coming months.

What is your income and monthly debts?

[bounceback]

thanks!

I paid off most off my debt.

My current monthly income (net) is $5400 and I have a car payment of $404/month