I have to correct my new friend Jim Walker. I said a score of 620 or higher was pretty good and would allow you to buy if you met other criteria. I never said it was very good. 720 would be better. 820+ would be very good.

"A score of 620 or higher is pretty good. That score will let you buy most homes if you meet all other criteria for buying a home."

Countrywide reported in august that the average FICO credit score dropped to 680 from an original 715, but topped the 620 that some analysts deem a cutoff for "subprime." The US median is 723.

I haven't seen stats on this for new homebuyers. I'll provide a link to more on average credit scores in general. You might want to search on portfolios and average FICO credit scores to learn more

I very rarely give a thumbs down. But I made exceptions for Pam and Noel this time, because their facts were wrong. A credit score is a number not just a subjective opiion. Noel wrote that 620 is very good. WRONG. 620 may be enough to get a mortgage, even today ; but it is in the low range of acceptable. A lender will need to be convinced by other documentation that the borrower is capable of repaying the loan In order to make a loan to borrowers with a score in that range.

To say that 740 is passable is nearly as misleading. Is it possible Pam posts with anything because she wants to rack up her numbers in the "first answer" category?

A score of 740 usually requires a record of no recent late payment (within the past two years) - no non-medical collections (often med collections are due to insurance company foot dragging totally unrelated to the borrowers character), and a debt load that appears (to a computer program anyway) to be within the borrowers capacity. That is more than merely passable.

the same Pam quoted an average credit score of 723 in the US later in the thread. If her 723 number is accurate, then the 740 would then be above average, not merely passable.
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Ah, but her answer of 723 is not the answer to your question. The 723 would be averaging all Americans including homeowners who have nearly paid off their homes, people who have no debt, people who have had their homes for years, people who are renting, college kids living at home, etcetera. So her answer of 723 does not address your question of what is the average score of a new home owner. My research hints that Pam may have given you a "median" score instead of an average score. Take anything Pam wirtes with a shaker of salt.

New home owners are a subset population of recent mortgage applicants. Recent mortgage applicants are a subset of all Americans.

To read the entire article cited below click on the link.
"Credit scores are on a scale from 300 - 850, with 850 being the highest credit score possible. To give you a feel for the extremes, while the national average credit score is 678, only 13% of the nation's population has scores above 800. At the other extreme, roughly 15% of the population has a credit score lower than 550. In general, a good credit score is anything above 700.

So that gives you two data points to think about. The national average credit score is 678 and a good credit score is anything above 700. Does that mean that half of all Americans have a credit score below the national average?

The short answer is No. In fact, 58% of Americans have credit scores above 700. The national average is only 678 because the average is being pulled down by some very low credit scores. Remember, we're not talking about the median score (half above and half below), we're talking about an average score."

Here is a link that gives you more detail:

More importantly that what is the average score, is what is a "good" score.

In 2004, you could get a mortgage with a score as low as 560. In late 2004 it jumped to a 580 minimum. Then it jumped to 620 and most recently to 680.

So needing a score of 680 or better will cause, and to some extent has already caused, the average score to increase toward 700.

Used to be when someone said 700 we said WOW! Now when someone says 700 we say, "good".

It is my understanding the average credit score is about 723 in the US

From my own personal experience, I'd say its around 680-700. An idea credit score would be 730+.

There is no such thing as the average credit score of a new home owner. The rule is simple. If you have a great credit score, it will be easier and cheaper for you to get a mortgage. If your credit score isn't that great, you will always find people to lend you money, but be aware that you'll have to pay dearly for that.

Credit scores are computer generated summaries calculated at the time of the request and based on information that the credit score agency has on file for the individual. There are 3 such credit repositories and it is highly unlikely that each of them will issue the same credit score. Experian and Equifax scoring range from 300 to 850 while Transunion' s Empirica Brand scores between 336 and 843. There could be huge variations between the scores that you get from each company. You could get a 800 from one, a 790 from another and a 751 from a third one. Unfortunately, lenders tend to gravitate towards the "worst" score and hit you with higher rates.

A good mortgage broker can give you tactics to improve your credit score or tell you what not to do so that it does not plummet. You can also find that info on internet site. Just Google "FICO" and you'll get a ton of leads.

I hope this helps

I would say the average today is 700 give or take. Way up from two years ago.

Unfortunately that question has a more complex answer. There is really no average credit score in the mortgage industry mainly because there are so many lenders that specialize in catering to different borrowers' needs. I have helped those with credit scores as low as 580 all the way up to 810. With the recent subprime implosion starting to also affect the larger banks, lenders are starting to tighten their guidelines. So depending on your other borrowing qualifications, that will determine what your credit score needs to be.

there are still 100% financing solutions out there if you so need it and can afford it, but your credit score needs to be 620 or above. Of course with a score of 620, the other requirements to qualify for the loan are extremely strict--you will have to have solid employment history, sufficient income to qualify, assets in the bank, etc. If you have a 720 or above, it becomes easier to qualify for the loan and the plus side is that you get a better interest rate and you have more and better mortgage programs to choose from, which is the most important thing.

Just to try and answer your question directly though I would say that in the past few months the new homeowners I have worked with have had an average credit score of 700. Best of luck to you!

A score of 620 or higher is pretty good. That score will let you buy most homes if you meet all other criteria for buying a home.

I would say there is not an average credit score. A score over 740 in today's market is passable. The higher the score the better interest rate and term for the buyer.