- Posted May 8, 2014 by
Average Credit Score Of Home Buyer Is 730
The Urban Institute reports that individuals who obtained a conventional mortgage had an average credit score of 752 which is slightly lower than 758 from just a year ago. A conventional mortgage is defined as a loan amount of less than $417,000 with a down payment of at least five percent. The average person who obtained a FHA loan had an average score of 686. FHA loans are commonly obtained by first time home buyers and don't require a large down payment.
The average credit score of buyers remains around 730 which is significantly higher than the 700 score that was the average before the mortgage crisis when lending requirements were less strict. Fico scores range from 300 to 850. A higher number of consumers with higher credit scores are opting for loans backed by Freddie Mac and Fannie Mae due to higher fees being imposed on FHA loans.
Consumers who are looking to purchase a home in the near future may want to order copies of their credit reports from Transunion, Equifax and Experian before applying for a loan and make sure that all of the information being displayed is accurate. Inaccurate items can be disputed; the credit bureaus have up to 30 days to complete an invesstigation.