After securing a down payment, a mortgage approval denial can be stressful. First, review the lender’s denial letter to identify specific reasons, such as credit score changes, income discrepancies, or property issues. Request a copy of the underwriter’s evaluation for clarity. If credit issues caused the denial, dispute inaccuracies on your credit report via . If income or assets are the problem, provide updated documentation (e.g., recent pay stubs or tax returns). If reapplying, choose a different lender or adjust terms (e.g., lower loan amount). If the property fails inspection, address repairs or seek a different property. For persistent denials, consult a housing counselor or consider alternative loans like FHA or VA mortgages.

Denial after a down payment often stems from shifting financial conditions or underwriting criteria. Data from the Consumer Financial Protection Bureau (CFPB) shows 20% of mortgage rejections involve credit report errors, and 30% of applicants reapply within six months. The Federal Reserve reports that 15% of denied borrowers successfully secure loans after correcting documentation or improving credit scores. Lenders typically require a 3–6 month waiting period before reapplying, allowing time to resolve issues. For example, a 2022 CFPB study found that 25% of denied applicants achieved approval after 90 days by resolving credit score gaps (average increase: 50–70 points). Property-related denials, such as poor inspection results, often require 30–60 days for repairs, with costs averaging $5,000–$20,000, depending on severity. Alternative loans like FHA mortgages, which allow lower credit scores (580+) and smaller down payments (3.5%), can be viable options for borrowers facing repeated rejections. Proactive communication with lenders and financial advisors is critical to navigate these challenges efficiently.