You need at least a 620 credit score to get a conforming loan. Your income is good, you have downpayment, and the amount you are wanting to borrow are all things in your favor. Unfortunately, credit score is the most important. However, as some have said, medical bills are the one thing that you can work on that won't count against you sometimes. If you can find a good lender in Chillicothe (or in Columbus, see my website) they can counsel you on how to go about working through some credit issues. I know a lender who is excellent at this and can help, FWIW. You are not that far off, you just need to do a little work.
Unfortunately, it is unlikely that you will be able to find a lender that will take a chance on you at this time. We recommend seriously working on improving your credit score.
There are a couple of possibilities that may help you get where you need to be. Many people in your situation, are finding help through seeking either seller financing or "lease options." Consider looking into these possibilities.
If you elected to go with an FHA program, they generally don't consider medical collections. If the medical debt makes up the bulk of your existing collections, I'd probably work at paying off the non-medical debts first. The main thing is that you have no late rental payments and keep your other accounts absolutely current while you try to bring your score up. It would definitely pay to check out a couple of credit repair places (certified or licensed only!) so they can review your credit report with you and advise you on the particulars of your case.
Depending on the ratio of consumer to medical debt collections, you may not be that bad off. Maybe touch bases with an FHA lender or two (or three) and just have a chat with them to see what they think. It sounds like you already have a copy of your report. Take that with you.
In the meantime be smart. Use the time instead if losing that time. Fix your credit, save for a down payment. The best way is to cancel your cable, lose your internet, do not eat out, and buy nothing you could do without.
You can do research now. Find out what real estate goes for, what areas would be good to buy in, what kind of house you would prefer and more.
That way when your credit finally gets god enough you could buy what you could afford and do it the right and safe way.
If your credit took a dive and it was just four years ago, there is probably a lot you can do to bring that score up - much of which involves actually paying off some of those old debts. Otherwise, few creditors are going to be interested in such a loan - knowing that you have decent income, yet still haven't paid back what you owed. You'd want to bring that score up to a minimum of 620 and preferably 640 or higher. Note that is the middle score.
Depending on your total situation, this might take 3-6 months if you work at it, longer if you don't.