My financial picture for a on USDA or FHA Mortgage

[notpaul]

I'm planning to purchase a house in 6 months to a year.  My FICO is about 650 now, and as I pay down some credit accounts with low limits and high usage it should go up from there.  I am thinking about how to improve my standing before buying a house.  Years ago I became very ill, lost much of my income, and had bad credit because of it.  Two years ago I paid everything off, no bankruptcy, no collections, no repos, and no current black marks on my credit.  I do have some old late payments.  About 6 years ago one went 180 days late.  And 3 years ago I had trouble catching up with my car payment, a vehicle I don't even have anymore and is paid in full.  But that's old news.  Since then, no late payments for a year. One snuck up on me a year ago, but it won't happen again. Currently, I make $37000 a year. 

Over the years I have somehow acquired 4 separate capital one credit cards through various credit card mergers.  One has a $2500 limit, one has a $750 limit, the others have limits of $500 and $300 (which I just opened to get a discount on something at best buy and it now charges a fee too) The limits are so low they are almost useless.  However, the $500 card is my oldest card account, so I am thinkin on keeping it.  Should I pay off and close the smaller newer accounts? They payments are in the $15 to $30 range.

I have student loan debt that will cost me $180 a month but it is deferred for a year.

I have a very nice car that is terrible in the New Hampshire snow and am thinking of trading it in for something more practical and cheaper. Payment is $337 a month  I bought it a little over year ago.  I could probably trade it in and break even on it right now, and maybe get a decent reliable truck for $250 a month.  But I am worried the ding on my credit for having too many new accounts and inquiries would be a problem.  And conventional wisdom says never buy a car before you buy a house.

What's my path to success?

[Anonymous]

I would have to say your credit score is good but here's what I would do to help it stay good and increase.
No more late pays at all. Most lenders will want 1-2 years with no more than 1-2 lates.
Pay off all credit but keep the accounts open,closing credit cards can lower your score.
If you can lower your car payment that will help your dti down the road for buying a home.
The student loan will count on your dti even if it's deferred.
Overall I am pretty sure you will be ok to qualify if you stay right where you are now