The property market in many parts of the United States looks like a boxer after 10 rounds with Mike Tyson to go in his best years – Bloody bruising and pain. Tax credits have been taken to try to stop the pain, should be aware that this is a big problem.

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The federal government has tried to stop the punishment of the housing market in the only way that seems to know how – by throwing money problem. Your continued use of this general strategy has causedthe question of how many people want to see out of control national debt. In it, the only flaw with the tax credit homebuyer. You see, it really is not a credit. This is a

The game has long been in though indirectly, through Fannie Mae, HUD and other agencies. homebuyers tax credit is a bold new approach to drive the market. Why? Well, the program is really just a lowPayment for

The tax credit works. Unless you are a have a in the last three years, you’re a virgin.

This means you can get a credit up to $ 8,000. The program will be extended around it to current owner, commerce, new houses are being expanded. You will be able to get a $ 6,500 windfall.

Ah, but in reality is a stroke of luck? No! This advantage must be repaid to the government! Who takesAdvantage of the program is to repay the amount requested in the next 15 years if they file taxes. One person was $ 8,000, an additional $ 533 annually to pay federal taxes. This actually is not bad, but it is clearly a from a definition.

The government has spent money like a drunken sailor in port for the in six months. In this case, at least the idea of a of a manGiveaway seems to be a good compromise.

http://www.firsttimehomebuyerloans.goodarticlesite.com/attention-first-time-buyers-of-property-tax-credits-the-reality-loans/

Whether you’re a Florida first-time home buyer or a seasoned veteran, finding a great Florida home loan  is often stressful and time-consuming. FHAmortgagePrograms.com helps streamline the Florida home loan process. 

Here’s how it works:

Complete our simple, Florida home loan request Receive up to 4 offers from Florida home loan lenders Compare Florida mortgage rates and terms for each loan Choose the Florida home loan that fits your needs

http://www.fhamortgageprograms.com/florida/

Florida home loan specialist

For the Florida home buyer coming up with the down payment is often one of the most difficult challenges to becoming a Florida first-time homeowners. Fortunately, today there are numerous Florida home loan  programs available that allow Florida home loan applicants to contribute as little as 3-5 percent of the purchase to purchase a Florida home.

For example, in order to buy a 0,000 Florida home, a borrower could get away with putting ,500 down compared with ,000, the traditional 20 percent down payment. Of course, low down payment loans do require Florida home loan applicants to meet certain criteria. Typically, Florida  home buyers will need to have a good credit history that demonstrates their responsibility with borrowed money. They will also be required to provide proof of sufficient income for the home purchase a Florida home and they will need to have enough cash on hand to cover both the down payment and the mortgage closing costs.

These Florida mortgage programs have made homeownership affordable for millions of Florida home loan applicants, but there are some drawbacks to making a minimal down payment on a Florida home loan, like having to pay private mortgage insurance (PMI). With a low down payment home loan, the Florida  lender takes on more risk than a 20 percent down mortgage. In order to reduce this risk, the borrower will be required to pay PMI until your equity reaches roughly 20 percent. That means paying an extra several hundred dollars in Florida mortgage fees each year. Still, for many Florida first-timers, the additional future costs is often worth the thrill of owning their first Florida  home.

In today’s economy, it is not uncommon for respectable people to have a less than respectable credit score. At the same time, home prices have fallen to the point that some feel that this is prime time to buy a home. But what do you do if you have a history of bad credit or a low credit score. How do you go about finding a bad credit home loan?

Well it may not be as easy as obtaining a home loan with a good credit score, but it is not impossible, and with diligence and a sense of responsibility, it may even help correct your credit score.

The first step is to know your credit score. Check to make sure there are no errors in the report and if there are, take steps to correct them. Lenders are cautious when granting a bad credit home loan, so knowing your score displays a sense of responsibility and the willingness to correct the score. It is best to correct your credit score before applying for a home loan. Pay off as much credit card debt as possible. With each debt resolution, however small, call the credit company and ask if they will re-evaluate your progress and report it so that you can watch your credit score creep back up.

Spend some time with your personal budget. Look at all your cash assets. Add up your checking account and savings account balances. Take into consideration your monthly salary. Remember if you have bad credit, your home loan will cost you a higher rate of interest. Knowing this, plan for the monthly payment you your budget to see if it actually fits the budget. Actually pay this money into a savings account. This will allow you to test the budget with the additional mortgage payment, and also give you a start on a down payment. Begin saving right away for a down payment. A bad credit home loan will require a larger down payment than one with a good credit score.

A bank is not the only place to secure a mortgage. It is possible that if you credit problems are not too serious, you might qualify for a VH or FHA loan for US citizens. Because they provide mortgage insurance through their organization, you might qualify for a bad credit home loan through these and other government agencies. It takes time to research, but it might be worth it.

And irresponsibility is not the only reason for a bad credit score. Often those who have not used credit may have a low score simply because of a lack of opportunity or experience. If this is your situation, and you have never bought a home before, it is possible to gain a first time buyer loan for a bad credit home loan.

There are two other out of the box considerations. One is the ‘rent or lease to own’ option. This will allow you time to work on improving the credit score. Lastly consider approaching the home owner and asking if they would be willing to carry the note for a short period of time so that you can rebuild your credit score.

Go to the internet and do a bit of research. Using the term ‘bad credit home loan’ you will be able to find several lenders who will be willing to grant a mortgage. Proceed cautiously, however. These lenders typically ask for sizable up-front fees, and require a higher interest than conventional lenders require of those with good credit scores.

While it may not be impossible to find a bad credit home loan, it is difficult. But don’t let this discourage you. While you are seeking a loan, you can be working on your credit score and a down payment for the home of your dreams.

There is a lot of different loans which can be categorized as bad credit loans. Basically any loan that does not meet all preferred lending criteria for a home can be called a bad credit home loan

For any individual, buying a home is one of the biggest purchases and it becomes even more important if the home is his or her first. Property is an asset for all people based across the world, but in today’s time, when cost of living in increasing dramatically, availing appropriate healthcare has become an unscalable task. This is why people have to wait years before they can book their first home. However, prefabricated homes, such as and manufactured variants, have come forward as suitable choices for first time buyers who want luxurious, durable yet cost effective homes.

Prefabricated homes are built in factories and installed on buyers’ sites; these can be designed by homeowners themselves or they can choose a standard floor plans available with the manufacturer. Despite being brought on-site with the help of cranes and flatbed trucks, these homes are usually not moved by the owners, though they have the option of doing so. People looking for a single storied house that is manufactured at a production plant opt for , while those who wish to have multistoried homes choose Modular homes. Both these homes have to comply with a set of standards while being built and commissioned, which differ from area to area. The manufactured variants have to comply with HUD standards, whereas ones need to adhere to codes that vary according to region.

All first time buyers must make sure that the they are purchasing have been fabricated in accordance with HUD codes laid down by U.S. Department of Housing and Urban Development. The first thing that must be taken care of is Minimum Property Standards (MPS), which defines the conditions for durability and quality of homes that are insured under HUD housing programs. This falls under the domain of Federal Housing Administration (FHA) and also takes care of resistance of the homes against weather, corrosion, floods and fire, among other elements. It was found that HUD-compliant did not bear well against hurricanes, so the foundations of these homes must be made deeper and stronger.

FHA, under the aegis of HUD, is responsible for the insuring the lending mortgages for innumerable . For buyers who are purchasing their prefabricated homes on loan, it is a prerequisite to get mortgage insurance. Therefore, all existing norms floated by this organization need to be followed by them rigorously. Since the cost of manufactured homes is up to 35% lesser than that of site-built ones, paying the premiums is usually not a problem for anyone.

http://deal4loans.haimachan.com/

Bank offers 25-year tenure, flexible plans to raise loan offtake

Axis Bank, the third largest private sector bank by assets, has taken the lead in scrapping this practice on . The bank has decided not to charge pre-payment penalties to its home loans even when customers shift a to a competing bank.

Others, including State Bank of India, Housing Development Finance Corporation and ICICI Bank impose pre-payment penalties when any of their customers seeks to refinance a home loan through fresh loans at lower Home Loan Interest Rates.

is the only Home Loan that does not include any pre-payment penalty charge from customers either for part pre-payment or full pre-payment.

SBI and Punjab National Bank have no pre-payment charges if the customer prepays from own resources or if half of the loan is repaid. But if the pre-payment is to be refinanced by any other institution or bank, the customer has to pay 2 per cent penalty on the money paid.

“At Axis Bank, we believe customers have the right to exercise their choice to shift if they find a rate advantage,” said Manju Srivatsa, president of retail banking at Axis Bank.

Axis has close to 50 retail asset centres, which are specialised units dedicated to processing retail loan applications ensuring quicker turnaround time.

Though a small player in the market, Axis Bank’s new CEO Shikha Sharma is bullish about growing the bank at a pace it has never seen before. The retail business is expected to fuel a substantial part of the bank’s growth.

The bank had a home loan book of Rs 12,049 crore at the end of the second quarter. It plans to grow its market share through customer-friendly home loan products with a variety of repayment options, like extended tenures, lower rates of interest and quick processing time.

allows pre-payment of only 25 per cent of the opening balance at a time without any charge. For any amount over and above that, there is a pre-payment penalty of 2 per cent.

allows pre-payment of a loan if 12 equated monthly installments (EMI) are kept as outstanding. In case of complete closure of the loan, the bank charges a penalty of 2 per cent of the amount prepaid.

HDFC managing director Renu Karnad Sud said, “Instead of expanding the home loan market, banks are only refinancing through teaser schemes. Pre-payment penalty is charged by banks and institutions because we have a cost to our funds and if we pre-pay, we have to pay a penalty to our lenders. We do not want to penalise customers. We only discourage them from borrowing from other banks to prepay us.”

Axis Bank also has a longer repayment period of 25 years instead of 20 years most players have today. The bank also has a bouquet of innovative home loan products targeted at different category of customers.

For example, it has an extended tenure loan targeted at the young salaried group, who aspire to buy a home with smaller EMIs and a longer repayment period.

“This is to encourage youngsters who have begun earning to buy an aspirational property. This category does not want a huge EMI outgo, but does not mind an extended tenure. The average loan size is Rs 12 to 15 lakh and these schemes have helped us maintain a year-on-year growth of 25 to 30 per cent,” said Srivatsa.

Axis Bank’s ‘Step Down home loan’ targets families where parents are nearing retirement and children ha­ve just started earning. The loan is structured in such a way so as to offer higher EMIs at the start and lower installments at a later stage.

These are all floating rate loans with an interest rate of 8.75 per cent for loans up to Rs 30 lakh and 9.25 per cent for loans above Rs 30 lakh.

Axis Bank also has a special home loan scheme that offers an interest rare of 8 per cent for the first year and floating rate for the remaining tenure of the loan where it competes with , the pioneer of the 8 per cent home loan scheme.

At present rates, the interest rates applicable for customers from the second year will be 8.75 per cent for loans up to Rs 30 lakh and 9.25 per cent for above Rs 30 lakh.

Due to the current recession, many people are facing great difficulty in buying houses that truly are affordable for them. Government Grants for First Time Home Buyers could be the solution.You too can purchase the home you always wanted with the assistance of a check of ,000 from a government grant.

Consider the fact that not everyone has sterling credit. Having bad credit does not necessarily spell denial on a grant application because the process used in grant approval or denial does not make use of credit checks. Just a small amount of research and you’ll be well on your way to obtaining the funding you need to purchase your new home.

Because this is the first house you are going to purchase, it may not be easy to get the funding needed to put down for your home before getting a grant. First time home buyers grants are different from loans in that, as a first time purchaser, you are not responsible for paying back the grant.

First time buyers who don’t have huge bank accounts often run into a problem when trying to find affordable mortgages. Because of this dilemma, these groups of borrowers must either put their plans to purchase a home on hold or seek additional financial help. This is the part where the government helps you and gives you ,000 so you can use it as a down payment!

With Government Grants for First Time Home Buyers you will be able to enjoy a stress-free home buying experience. In fact, there will be millions of dollars left over from these first time home buyer grants this year because there are not enough people taking advantage of them.

If you have bad credit, you might think that the is not off limits to you, but not necessarily the case. Even if your feet are not yet perfect in May, you can still get is needed get a reality for you. You may need to go all different, but the is not outside the realm of possibility.

http://www.loanshomeowner.equitylinesite.com/2009/12/14/home-loans-bad-credit-the-problem/

Ready to help if you have bad credit

Perhaps it was said before thatwhen the financing you need good credit with a great, but this may not be accurate. There are many people, the houses are worth terrible credit or no value FICO own and were still able to a

You just need to know how to work or to an agent who knows the advantages and disadvantages to achieve financial security, even though less than perfect story of the loan. The first thing you might consider whetherAttempt to enter into a new is to make a payment.

It takes five to 20 percent down payment is usually enough for him a If you have a warehouse lenders must prove you mean business, so that it is willing to their money at If you make a payment can be better, at a rate so as to ensure otherwise.

Another possibility is to provide a guarantee for the loanwith you. A guarantee is a person who has a better state than you, that payment can be made if not the promise. The presence of a sponsor helps us to be the balance of your history of bad loans and loans with a higher quality found much easier to not only a but getting a better interest rate, which is too important.

There are especially for people, such as WHO, with less than perfect story of the loan. Many peopleTo give credit problems had been able to make a with a VA or FHA loans, too.

The great thing about an FHA loan is that the requirements FICO, so even if you have a bad credit rating can not work against you. Probably still do a small fee to obtain letters of credit, or even a guarantee, but may be able to ensure a reasonable duration of loans and interest rates at affordable prices.

http://www.loanshomeowner.equitylinesite.com/2009/12/14/home-loans-bad-credit-the-problem/

FHA home loans for Buying a Florida home.

Florida home buyers should know the many advantages of the FHA mortgage loan programs. FHA loans were created to help increase home ownership. For the the FHA home loan program can simplify the purchase of buying a  Florida home, making financing easier and less expensive than an other home loan program. Some highlights of the Florida FHA loan program include:

Down payment less than 3% of Sales Price Gifts are allowed Seller can credit up to 6% of sales price towards closing and prepaid costs. 100% Financing available No reserves required. FHA regulated closing costs.

  No minimum FICO score or credit score requirements. FHA will allow a home purchaseyear after a . FHA will allow a home purchaseyears after a .

To take advantage of the , give us a call 1-800-570-0448 or use our quick application at www.FHAmortgageFHALoan.com

Common FHA Mortgage Questions Why should I apply for an FHA home loan?

There are lots of good reasons to choose an FHA home loan over other Florida mortgage programs, especially if one or more of the following apply to you:

You’re a Florida first-time homebuyer. You want to keep your monthly payments as low as possible. You’re worried about your monthly payments going up You don’t have a lot of money to put down on a house.   You’re worried about qualifying for a loan. You don’t have perfect credit.

If any of these things describe you, then an FHA home  loan may be right for you. Why? FHA home loans offer many benefits and a level of security that you won’t find in other loans including:

FHA home loans have competitive interest rates because the federal government insures the loans for lenders.

FHA home loans have a low 3.5% down payment and the money can come from a family member, employer or charitable organization as a gift.

Because FHA insures your mortgage, FHA mortgage lenders may be more willing to give you FHA home loan terms that make it easier for you to qualify.

You don’t have to have perfect credit to get an FHA home loan. In fact, even if you have had credit problems, such as a bankruptcy, it’s easier for you to qualify for an FHA home loan than any other mortgage program.  

The FHA has been helping people since 1934. Should you encounter hard times after buying your home, the FHA has many options to keep you in your home and avoid foreclosure.

FHA insures loans for lenders against defaults it does not lend money or set interest rates. For the best interest rate and terms on a mortgage, you should compare mortgages from several different lenders. An FHA-approved lender can help you start the loan application process.

You may use an FHA-insured mortgage to purchase or refinance a new or existing 1- to 4-unit home, a condominium or a manufactured or mobile home (provided it is on a permanent foundation).

What kinds of FHA home loans does FHA offer?

Most FHA home loans are fixed-rate mortgages (loans). The advantage of a fixed-rate mortgage is that your interest rate stays the same during the loan period, so you know exactly how much your monthly payment will be.

– First-time homebuyers can be a little stretched financially. With FHA’s adjustable rate mortgage (ARM), the initial interest rate and monthly payments are low, but these may change during the life of the loan. FHA uses the 1-Year Constant Maturity Treasury Index (CMT) to calculate the changes in interest rates. An index is a measure of interest rate changes that determine how much the interest rate on an ARM will change over time.

The maximum FHA home loan that the interest rate on your FHA home loan may increase or decrease in any one year is 1 or 2 percentage points, depending upon the type of ARM you choose. Over the life of the loan, the maximum interest rate change is 5 or 6 percentage points from the initial rate. The advantage of selecting an ARM is that you may be able to expand your house-hunting value range because your initial interest rate will be low, as will your payment. Click for a more in-depth explanation…

– Sometimes you might see a home you’d like to buy, but it needs a lot of work. FHA has a loan for rehabilitating and repairing single-family properties called the . You can get one loan which combines the mortgage and the cost of repairs. The mortgage amount is based on the projected value of the property with the work completed. The advantage of this loan is that you can buy a home that needs a lot of work, but have only one mortgage payment, and you can complete the repairs after buying the home.
Read more about these loans.

– A family who purchases a home under this program can apply for financing through an FHA-approved lending institution such as a bank, savings and loan, or a mortgage company. To qualify, the borrower must meet standard FHA credit qualifications. An eligible borrower can receive approximately 97% financing and use a gift for the downpayment. Closing cost can be financed; covered by a gift, grant or secondary financing; or paid by the seller without reduction in value. More… 

How do FHA-insured loans compare to subprime loans?

Subprime loans are loans designed for homebuyers who don’t have a strong credit history or can’t qualify for a regular or prime loan. Lenders charge a high interest rate on subprime loans because the risk that a homebuyer may not make their payments is high. Because FHA insures the lender against this risk, the interest rates on FHA-insured loans are generally among the lowest in the market. Most subprime loans carry interest rates at least 3 percentage points higher than an FHA-insured loan. On a 0,000 mortgage, the monthly payment for a subprime loan would be over 0 a month higher than an FHA-insured loan.

The majority of subprime loans are also ARMs, where the interest rate can change a lot and greatly increase your monthly payments. Most FHA-insured loans are fixed-rate loans where the mortgage payment always stays the same. If you have an FHA-insured ARM loan, the rate can’t go up by more than one or two points in a year. The fees that lenders charge their borrowers for processing a subprime loan are also generally higher than on an FHA-insured loan.

Most subprime loans carry a heavy prepayment penalty that you must pay if you want to refinance your loan to a lower interest rate. These penalties can cost you hundreds or even thousands of dollars. There is never a prepayment penalty on an FHA-insured loan. You can refinance at any time and not worry about paying any penalties.

Unfortunately, because they don’t know these facts, many homebuyers who could qualify to buy a home with a fixed-rate FHA-insured loan only apply for subprime loans. Check out an FHA-insured loan before settling for a subprime loan!

How do FHA home loans compare to conventional loans?

Conventional loans usually require a larger downpayment than FHA and if you have less than perfect credit you may not qualify for an affordable mortgage with a low interest rate . The best thing to do is compare the cost of the conventional loan to an FHA-insured loan line-by-line. What are the fees for each? What is the interest rate? How much is the mortgage insurance? How much downpayment is required? For some borrowers, a conventional loan may be less expensive. For many others, getting an FHA-insured loan is the way to go.

Do you have to buy mortgage insurance on an FHA home loan?

Yes – as you will with most loans.

The Housing and Economic Recovery Act of 2008 provides for a one-year moratorium on the implementation of FHA’s risk-based premiums beginning October 1, 2008.  Consequently, effective with new FHA case number assignments on or after that date, FHA will no longer base its mortgage insurance premiums on a combination of credit bureau score and loan-to-value ratio.  The new premiums (upfront and annual) to be implemented for all loans for which a case number is assigned on or after October 1, 2008, are described below.  Mortgagee Letter 2008-16 is rescinded in its entirety.  Please note that certain parts of that mortgagee letter are retained and reiterated in the guidance that follows.

  FHA home loans will charge an upfront premium in an amount equal to the following percentages of the mortgage: 

Purchase Money Mortgages and Full-Credit Qualifying Refinances = 1.75 Percent Streamline Refinances (all types) = 1.50 Percent

Most home loans require mortgage insurance when your downpayment is less than 20% of the sales price. On conventional and subprime loans, mortgage insurance is provided by private companies. Whether private mortgage insurance is less than, equal to, or more than an FHA-insured loan’s insurance will depend upon the loan program and your qualifications.

Compare the cost of FHA home loan home loan compare  to subprime and conventional types of loans over the life of your loan. Then compare how much each one costs monthly. With the protection and value you get from an FHA home loan you will find it’s a very good deal.

Kentucky first-time home buyer Zero Down Programs

Only home buyers obtaining a Kentucky Housing Corporation first mortgage are eligible for DAP funds.

Zero Point or Regular Rate option on loans utilizing DAP.



– Households whose gross annual income does not

exceed KHC’s regular income guidelines and who are utilizing a KHC

loan.



– New and existing properties with a maximum

purchase price of



– up to ,000 in 0 increments; 0 minimum.

Must go maximum allowed LTV on first-mortgage amount.



– 6%.



– Loan is repaid over a seven-year term.

– Ratios with AUS approval can go 40%/45%. May gross-up nontaxable

income to help qualify for the loan.





DAP GFE and TIL must be on a separate form from the first mortgage

GFE and TIL. Tool to create the GFE is available under Loan

Connection Services.



DAP fees: document prep to closing agent (VA borrower cannot

pay). Recording fees – actual recording cost.



KHC provides note and mortgage in closing documents set.





Buyer or seller may use funds to pay for repairs and payoff

existing debt; DAP funds may not be used.

(Available on a limited basis)

(Available on a limited basis)

Households whose gross annual income

does not exceed HOME Program income

guidelines.

First-time home buyers whose gross

annual household income does not exceed

HOME Program income guidelines

who are a single- or two-parent household

with at least one dependent child under the

age of 18.

Households whose gross annual income

does not exceed HOME Program income

guidelines

who meet one of the

following:



At least one of the home buyers is age

62 or older; or



At least one member of the household

has a permanent disability and is

receiving disability income.



Existing (previously occupied) property only up to a maximum purchase price of .



Property cannot be located within 3,000 feet of an airport runway.



If house was built before January 1, 1978 and has extensive lead-based paint problems, property will not be eligible for programs.

up to a maximum of

based on need. Must go maximum

on first mortgage amount.

Up to a maximum of

based on minimum ratios of 29/41 (minimum ,600).

Second mortgage loan forgiven over 5 years; no monthly repayment required.



DAP GFE—Tool to create this form is available under Loan

Connection Services.



DAP fees:



document prep to closing agent.



Recording fees – actual recording cost.



KHC provides note and mortgage in closing documents set.



All liquid assets must be listed on the loan application.



All loans require Notification to Seller (KHC Form 95.)



All loans require an HQS Inspection



HQS Inspection Form (Form 89) will be printed with KHC forms.



Full HQS Inspection Form is available on KHC’s Web site.



Lead-Based Paint Requirements – If house was built before January

1, 1978, borrower must receive Lead-Based Paint pamphlet and sign

HOME Lead-Based Paint Notice (KHC revised Form 96) as of or

before the contract date. (Purchase contracts that have the same

language as Form 96 are acceptable.)

 May gross up non-taxable income 15% to

help qualify for loan.



Ratios 29%/41% or 40%/45% with AUS approval.



gross up non-taxable income 15%.



All household occupants (18 years and older) with income be included on the loan

and be credit-ready.

 When using DU/LP, down payment assistance funds with payments deferred five years or more must be entered in DU/LP as

subordinate financing instead of gifts.



Borrowers must use all their own funds before any source of HOME DAP funds are used. However, borrower can retain reserves of

their own funds equal to two months’ housing payments (PITI).



Borrower may use their funds to pay off existing debt to qualify.



The seller must pay for any required repairs. Final inspection can be paid by borrower or seller.



HOME funds cannot be used with REOs.



Lender must disclose any Secondary Financing on a separate GFE and HUD-1 as of January 1, 2010.

First time home buyers 5 easy steps to kill your credit score
First time home buyers in today’s market have an incredible opportunity. Affordable prices, sub-5% interest rates, and very attractive down payment assistance programs are all waiting for qualified first time home buyers.
The key word here is “qualified”.
Lenders in this last housing boom literally went STUPID when it came to approving home loans. In complete disregard for prudent lending standards, we offered stated income and asset loans, we had NINJA loans (no income-no-job-or assets). There were even rumors of a Stated FICO loan.
To obtain a first time home buyer loan in today’s market doesn’t require perfect credit, but credit score requirements are tighter, and it can be “credit score suicide” if you aren’t careful in managing your credit.
Why it’s important for first time home buyers to have a good credit score
FICO focuses on five categories when calculating your score: How much debt you have, your payment history, your debt utilization ratio (how much you owe in relation to your credit limits), how far back your credit history goes and your mix of various types of credit.
Here are five sure steps to “credit score suicide”

1. Making late payments
Payment history accounts for up to 35% of your credit score and a single late payment, if you have a good credit rating, can lower your score up to 110 points immediately following the late payment.
The longer it’s been since you were late on a payment, the less of an impact it will have on your score, but “your history does follow you.
2. Carrying a big balance
Your credit utilization accounts for 30% of your credit score. Credit utilization is the percentage of credit used to available credit.
While consolidating all your credit cards into one low interest rate card makes sense from a monthly payment perspective it can have a devastating effect on your credit score.
Your magic number  here is 50% or less. If you can maintain your credit usage (across all your cards) to 50% of the available credit you won’t see your FICO score in need of life support.
3. Closing a credit line
At first that may seem counter-intuitive, but if you close a credit card it could negatively impact your credit utilization ratio AND if it is an older account, it could also affect the age of your credit history.
If the account has a zero balance and no annual fee, leave it alone until after you’ve moved into your new home.
4. Opening a credit line
In order to open a new account, a credit card company will need to check your credit, and a typical “hard” inquiry like this will lower your score by about five points, plus the cost of opening a new line of credit typically ranges from five to 15 points.
Twenty points may not seem like a lot, but in today’s first time home buyer loan market, it can make the difference between home owner and renter.
5. Defaulting
Defaulting on a credit obligation, whether it be a credit card charge off, a collection account or bankruptcy is the single worst thing for your credit score.
Declaring bankruptcy could lower a good score of 750 by up to about 250 points.
Even bankruptcy isn’t “life without parole”. If there were extenuating circumstances you may be just a couple of years from buying your first home.
Buying a home after bankruptcy-Part I
Buying a home after bankruptcy-Part II
But, you have start rebuilding and any slip ups afterward will only further delay making that move from home buyer to home owner.