The credit risk for obtaining a mortgage loan varies depending on the age of the applicant. CoreLoigic staffer Archana Pradhan takes a look at the credit vaiable trends of Millennials, Generation Xers, Baby Boomers, and the Silent Generation.
Pradhan points out that due to such factors as little or no credit history, millennials have the lowest average credit score (730) among the groups behind Generation X (738), Baby Boomers (753), and the Silent Generation (770). Unfortunately they do have the highest loan-to-value ratio:
The average LTV ratio for Millennials applying for a mortgage loan in the last three months was 89 percent compared to 81 percent for Generation Xers, 73 percent for Baby Boomers, and 68 percent for members of the Silent Generation. Millennials are short of savings, often have student or other debt, and are early in their working careers (hence, have lower earnings than more experienced workers).