Washington DC Homebuyers Have Nation’s Best Borrowing Score

June 6, 2014

Washington, D.C., homebuyers have the nation’s best borrowing score.

And they need it, considering the District’s $325,603 average home loan is highest in the nation, nearly double the U.S. average of $168,532.

The data come from online lender LendingTree, based in Charlotte, North Carolina, which has created a weighted average of loan-to-value ratio, average credit score, average loan amount and “lendability,” which the company says is based on its own proprietary algorithm.

At 98.7 percent, the District’s borrower score is far above the national average of 77.7 percent at the end of the first quarter. Virginia’s score is 91.5 percent, good for seventh place, and Maryland’s is score 85.3 percent and 13th place.

The District’s average credit score is 679. Virginia’s is 662 and Maryland is 650 on the 300 to 850 scale.

The average home loan in Virginia is $200,983. In Maryland, it’s $210,501.

LTV ratios are 86.59 percent in the District; 89.7 percent in Virginia; 88.96 percent in Maryland; and 88.75 percent nationwide.

“As home prices improve and lenders loosen restrictive lending guidelines, there is a wider pool of borrowers that are able to qualify for a loan,” Doug Lebda, founder and CEO of LendingTree, said in a release. “Potential borrowers with a solid financial portfolio who may not have qualified for a mortgage two years ago may find it easier to qualify today.

As Published in Washington Business Journal – 6-6-14 – Mark Holan

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