One of my previous clients had very similar situation as yours. It actually took them about 1 year and a half to see difference in their credit score. And they did not buy again until 3 years later...
Not sure whether that was standard timeline. Just wanted to share with you.
Yuan's Team Realty
Heavy debt is not necessarily going to hurt your chances for a new home, but the plan you have put into action is truly the best way to go (paying off debt and saving for DP). Never being late on the mortgage is an excellent fact, but as you have guessed, the other lates still affect your credit scores negatively.
A good loan officer could analyze your situation and help you formulate a strategy or help your strategy succeed by reviewing your position now, and in 6 months to a year. I often help people improve their credit, and we offer credit restoration strategies at no cost or obligation.