Struggling Creditworthy Repeat Home Buyers: Mid-Tier FICO Analysis

This edition of Housing Insights examines the drop in mid-tier credit score lending and discusses the possible underlying causes. The analysis focuses on the impact of Fannie Mae eligibility changes and finds that the decline in mid-tier lending persists after controlling for eligibility. Further analysis indicates that non-first-time home buyers (repeat borrowers) are significantly more impacted by the mid-tier lending decline than first-time home buyers. This decline in repeat borrowers is strongest along the U.S. coasts, where the housing crisis diminished borrowers’ abilities to retain or gain equity in their current homes, reducing their likelihood of selling their existing homes and purchasing new ones.

To learn more, read our latest edition of Housing Insights.

Struggling Creditworthy Repeat Home Buyers: Mid-Tier FICO Analysis (PDF)