Student loans are installment, not revolving, so despite the relatively large amount it may not hurt much. If you can afford 3% down, and your DTI looks good to the lender, then FHA is a good option. Talk to a mortgage broker who is licensed to do FHA. There are one or two brokers in here.
Main thing with FHA is no lates in the last 12 months. What's your most recent late on anything reported?
It is a buyers market out there, but it's also gonna depend upon where you are geographically. Florida, Texas, Arizona, Nevada and California are hurting real estate markets with probably most of the more highly motivated sellers. A really motivated seller will either deeply discount the purchase price, perhaps carry back a second, or perhaps even seller finance the whole thing--if they need out bad enough.
Credit scores don't matter nearly all that much to FHA or to motivated sellers doing seller financing.