A:

One mortgage analytics service provider, Ellie Mae, Inc. (NYSE: ELLI), processes almost a quarter of mortgage applications in the United States. Since August 2011, Ellie Mae has reported the average credit scores of those receiving loans used to purchase or refinance their homes.

Average FICO Score of Closed Loans

Using a sample of approximately 3.7 million loan applications, Ellie Mae estimated the average FICO score for FHA loan applications used for home purchases to be 689, as of September 2015. This score is 5 points higher than the average FICO score for similar closed FHA loans for all of 2014.

For the same month, the average FICO score for closed conventional mortgage applications used for home purchases was 755, which matches the average FICO score for similar closed FHA loans for all of 2014.

Also, the average FICO score for closed VA loan applications used for home purchases was 707. No information was provided about the average FICO score for such loans for 2014.

Average FICO Score of Denied Loans

In the same report, the average FICO score for denied FHA loan applications for home purchases was 636 in September 2015, which was 3 points higher than the average FICO score for similar denied applications for all of 2014.

For the same month, the average FICO score for denied conventional loan applications for home purchases was 700, which is 24 points lower than the average for similarly denied applications for all of 2014.

The average FICO score for denied applications for VA loans for home purchases was 642.

The Bottom Line

This sample of average FICO scores of approved and denied applications can provide you with an insight of how your credit score stacks up.

RELATED FAQS
  1. Do mortgage lenders use FICO 8?

    As more lenders employ the FICO 8 credit-scoring system, borrowers should be aware of how this may affect them.. Read Answer >>
  2. Why doesn't Credit Karma offer FICO scores?

    Credit Karma offers a popular way to track credit scores for free. While it does not offer FICO scores, the information it ... Read Answer >>
  3. How does the number of credit card accounts I have affect my credit score?

    Your credit score, which is also referred to as your FICO score, is a measure that creditors use to assess your potential ... Read Answer >>
  4. How can I increase my FICO score?

    Find out about a few simple, consistent ways to improve your credit score, including how to manage your credit card balances ... Read Answer >>
Related Articles
  1. Personal Finance

    Understanding Your FICO Score

    Lenders use the FICO score to assess a loan applicant’s credit risk.
  2. Managing Wealth

    Can You Hit The Highest Credit Score?

    Yes – it's doable. But the real question is, does it matter?
  3. Personal Finance

    How FICO Scores Are Calculated

    Lenders look at this to determine your credit risk. We explain what it is and how it's figured out.
  4. Personal Finance

    More Banks Offer Free (Actual) FICO Scores

    Lenders overwhelmingly use the FICO credit score when it comes to determining creditworthiness. And thanks to a new initiative, consumers can see it too.
  5. Personal Finance

    Common Things That Improve And Lower Credit Scores

    Credit scores are used by lenders to estimate credit risk. Find out how you can better earn the trust of lenders and reap the benefits.
  6. Personal Finance

    Is It Worth Paying To Check Your Credit Score?

    Generally, a free credit report is all you need. If you've had some credit issues, it may be worth buying your credit score to get a finer level of detail.
  7. Personal Finance

    How High Is a 'Good' Credit Score?

    How high of a credit score do you need to get a home mortgage or buy a car? Read on for some actual numbers.
  8. Personal Finance

    Top Places To Get A Free Credit Score Or Report

    When's the last time you checked your credit report? With all the hacking out there, don't wait for the car dealer to find problems when you need a loan.
  9. Investing

    FICO Credit Score Changes – Will Yours Go Up?

    Your FICO score could rise due to a new way of scoring some debts – which could make you eligible for a lower interest rate on credit cards or loans.
  10. Personal Finance

    Easiest and Hardest Cities for Getting a Mortgage

    Since the housing market crash of 2007, tight credit has made it harder to finance a home. Here are the 5 easiest and hardest cities for getting a mortgage.
RELATED TERMS
  1. FICO Score

    A type of credit score that makes up a substantial portion of ...
  2. FAKO Score

    A derogatory term for a credit score that is not one of the FICO ...
  3. Beacon Score

    A number generated by the Equifax Credit Bureau to rank an individual's ...
  4. FICO (Fair Isaac)

    A major analytics software company that provides products and ...
  5. VantageScore

    A consumer credit rating product developed by three credit rating ...
  6. Cut-Off Score

    The lowest possible credit score one can have and still qualify ...
Trading Center