Yes, it is possible. FHA is not credit score driven. With your score being a 540, the file will have to be manually underwritten. You will need a lender, not a broker for this sitaution. A lender will underwrite the file in house with their underwriter. Of course the approval will still depend on your debt to income ratio, employer, assets and documenting it all with bank statements, W2's and check stubs. Best of luck.