Trying to buy a house (FHA new guidelines making it hard!) What would you do?

My husband and I have been working on our credit to get approved for an FHA loan, we got our score up but we recently found out about the new guidelines that your collections accounts can't exceed over $1000. We have around $7,000 in collections..but paying them off is nearly impossible. The only option would... show more My husband and I have been working on our credit to get approved for an FHA loan, we got our score up but we recently found out about the new guidelines that your collections accounts can't exceed over $1000. We have around $7,000 in collections..but paying them off is nearly impossible. The only option would be for us to move in with my parents for a year and put nearly all we have every month towards the collection accounts. Either that, or wait around 6 years for everything to drop off..but we wanted a home for our 1 year old before she starts school. If you were in my shoes what would you do? Please help..
Update: Go With The Flow, we went to the bank a year ago and she told us that they only cared about the past 2 years and didn't even look at the older accounts and the credit score was their biggest worry. Then we get our score up and now we have to pay back thousands of dollars in old debts before being considered for... show more Go With The Flow, we went to the bank a year ago and she told us that they only cared about the past 2 years and didn't even look at the older accounts and the credit score was their biggest worry. Then we get our score up and now we have to pay back thousands of dollars in old debts before being considered for a loan, it's BS. Plus, things do drop off after 7 years, I've had quit a few things drop off after 7 years and if it doesn't drop off, a dispute will take care of it.

Please, I'm just asking advice on what would be the thing to do here...
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