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The unique challenges facing minority first-time homebuyers

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How modernized servicing creates customers for life

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Savvy lenders are already preparing for the next valley – Here’s how

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Poor credit scores keep Gen Xers from entering the housing market

On average, Gen Xers owe more than $20,000 in student loan debt

A recent report from LendingTree reveals that although Gen Xers are now in their prime earning years, many are refraining from homeownership due to substantial debt.

The report analyzed the credit profiles of Gen Xers who own homes and compared them with those who are renters.

LendingTree's analysis discovered that although renters carry less overall debt, homeowners have lower delinquency rates and higher credit scores.

While each group of Gen Xers' credit scores may vary, data indicates student loan debt remains the largest burden for this generation.

This isn’t much of a surprise as student loan debt has racked up a collective $1.5 trillion bill for 44 million Americans, according to the Federal Reserve.

This debt has undoubtedly impacted the housing decisions of young Americans, even delaying the American dream of homeownership for many Gen Xers.

According to LendingTree’s analysis, 28% of homeowners owe a median of $28,557 in student debt, whereas 27% of renters have a median of $28,203.

While their debt burden may be similar, LendingTree suggests Gen X homeowners hold an asset that will not only be a meaningful source of wealth but will also boost their credit profiles.

According to the report, Gen X homeowners have a median credit score of 672, out ranking the 586 score for non-homeowners.

“Homeowners have a median of nine financial accounts compared to just four for non-homeowners,” LendingTree writes. “This reflects the higher credit scores of Gen X homeowners as they are able to obtain more credit accounts. Many renters may face difficulty accessing credit due to their lower credit scores.”

NOTE:  LendingTree analyzed the credit records of more than one million Gen X users, analyzing their financial health to identify savings opportunities that could improve their credit scores.

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