I also got two relevant things for you to read -- this is a blog excerpt from Bill Zielinski...
The FHA is introducing new guidelines on loan to value ratios and the minimum credit score required for FHA borrowers. As detailed in a Mortgagee Letter from the Department of Housing and Urban Development (HUD), the following credit requirements will apply for FHA borrowers, effective October 4, 2010.
* To be eligible for maximum financing, borrowers will need a minimum credit score of 580 or higher.
* Borrowers with a credit score between 500 and 579 will be limited to a loan to value of 90%. A sub 580 FICO credit score borrower will henceforth need to make a 10% minimum down payment on a purchase transaction.
* All borrowers with a credit score below 500 will not be eligible for FHA-insured mortgage financing.
HUDâ€™s newly introduced minimum credit score and loan to value requirements will apply to all single family loan programs, except for Reverse Mortgages (Home Equity Conversion Mortgages) and Hope for Homeowners.
The new credit requirements are not expected to dramatically change the number of FHA mortgage approvals. Most lenders had already imposed a minimum credit score requirement of 640 or higher for FHA borrowers. In limited cases, borrowers with scores between 620 and 639 could still obtain mortgage approval.
Many potential FHA borrowers with scores below 640 who cannot obtain mortgage approval may be left wondering why this is the case if the FHA has established a minimum score of only 580. The explanation for this is that the FHA does not make mortgage loans but rather insures FHA loans made by lenders. Despite the FHA insurance, banks do not have an iron clad protection from loss.
... rest of that blog at http://seekingalpha.com/article/223956-the-fha-s-new-minimum
And I wrote a 10 part blog called "Top 10 Credit Myths" which is good..
In addition to the sound advice already given, if a property/home was also included in a Chapter 7, you will then have to wait an additional 24 months ( 3 years total) from the date of discharge. Again, so long as you can show that your student loan will remain in deferment 12 months from the date of closing on your home, you'll still be fine.
Before you go house hunting, you should focus on resolving the issues that brought your credit scores down. Generally, virtually all lenders require that your credit scores be at least 620. To get the best rates for an FHA mortgage, your credit scores must be 680 or better.
FHA is currently working on establishing mininum credit sxcore requirements. You should keep an eye on those changes to see they might affect you and your situation.