If denied a mortgage, prioritize improving your credit score, explore alternative loan programs, and negotiate with sellers or private lenders. Boosting credit through timely payments and reducing debt can increase approval chances. Consider government-backed loans like FHA or VA programs, which often have lower requirements. Seller financing or land contracts may also provide short-term solutions.

Credit score improvements are critical, as 25% of mortgage applicants were denied in 2023 due to poor credit (Federal Housing Finance Agency). FHA loans require a minimum 580 FICO score, enabling a 3.5% down payment, while VA loans offer zero-down options for veterans. Private lenders typically charge 8-12% interest but may accept lower credit scores. Seller financing agreements, though rare, accounted for 6% of U.S. home purchases in 2022 (National Association of Realtors). These alternatives bridge gaps when traditional lenders fail, leveraging seller flexibility or government incentives to facilitate transactions.

Data from the Consumer Financial Protection Bureau shows 40% of denied applicants could reapply successfully after six months of credit score improvements. Down payment assistance programs, averaging $10,000 per household nationally, further reduce barriers. Combining these strategies increases accessibility, though terms vary by location and market conditions.