Consumer credit scores are improving, but many qualified borrowers are still hesitant about buying a house. New tools are helping lenders better assess risk and show consumers with lower credit scores they can qualify for mortgages.
The two government-sponsored enterprises have relied on the “classic” FICO credit scoring model for the past 12 years. But the Federal Housing Finance Agency is weighing whether the GSEs should upgrade to more recent scoring alternatives.
Over half of mortgage industry executives anticipate first-time home buyer growth in 2018, estimating that market will grow at a faster pace than the overall housing market, according to Genworth Financial.
Consumer credit varies nationally due to regional variations in income and the cost of living. To get a sense of where it's strongest and weakest, here's a look at the five best and worst states for consumer credit scores.