No, it is not possible to get a mortgage with a 580 FICO. Your credit score indicates an unwillingness to pay your bills (that is why you have collection accounts).
Pay your collection accounts in full (gives you a better score then settling) and then save for a home.... more
The best person to ask is your loan officer, they can review your credit and let you know how to go about a rapid rescore. Scores are affected by paying on time and by lowering balances to below 50% of your credit limits. Do not close accounts, that lowers scores.... more