The average credit score for home buyers increased by four between the fourth quarters of 2015 and 2016, rising from 733 to 737, according to new data from CoreLogic’s Housing Credit Index. During the fourth quarter of 2016, the share of home buyers with credit scores under 640 was about one-tenth the level recorded in 2001. Mortgage credit scores range from 300 to 850.
CoreLogic also reported that the average debt-to-income (DTI) for home buyers in the fourth quarter of 2016 was 36%, similar to the fourth quarter 2015 level. The loan-to-value (LTV) for home buyers increased slightly from 86.7% in the fourth quarter of 2015 to 87.1% one year later. So, most buyers put less than 20% down when purchasing.