LendingTree, the nation's leading online source for competitive loan offers, Thursday released its latest Borrower Health Report which stated an almost three percent quarter-over-quarter improvement of the Borrower Health Score.  The report analyzes the financial health of prospective borrowers, ranking each state according to borrower health.  The Borrower Health Score is calculated by using the weighted average of credit score, loan-to-value ratio and overall lendability of mortgage-seekers in each state for the fourth quarter of 2013.

In Q4 2013, the average credit score for all prospective borrowers at LendingTree was 635, which is one point lower than in Q3 2013. The average loan amount increased from $164,998 to $168,747 in the fourth quarter and the average LTV ratio dropped from 89.8 to 88.6 quarter over quarter, two contributing factors to an improved borrower health score.

"Lenders are slightly more motivated to increase lending to homebuyers as refinancing activity drops," said Doug Lebda, founder and CEO of LendingTree. "Borrowers still need to meet underwriting requirements, but for potential borrowers with less than perfect credit, there might be opportunities available to help them become homeowners."