According to Ellie Mae’s latest Millennial Tracker report, Millennial homebuyers who closed loans in November 2017 had slightly lower credit scores than those who closed in 2016. This was particularly evident in the report’s FHA and VA loan credit scores.
As shown in the report, the average FICO score for total FHA loans closed for Millennial homebuyers dropped two points between 2016 and 2017. The score was even lower for FHA refinances, which dropped from 678 to 669. For VA refinance loans, the Millennial Tracker showed the FICO score average decreased from 725 to 710.
“With the average credit score dipping, lenders are extending credit to borrowers who may have had no previous access to the housing market,” reported Joe Tyrrell, executive VP of corporate strategy at Ellie Mae. “While these scores are still significantly above the levels seen a few years ago, it is encouraging to see increased accessibility, especially as the millennial population continues to pursue home ownership.”
Although the average of accepted credit scores is dropping, it’s important to continue monitoring your score and avoiding missed payments. The better the credit score, the better the mortgage rate options! For more information about average credit scores, or to learn more about home financing in general, contact one of our mortgage specialists today.
