If you cannot secure a mortgage, your down payment should not remain idle. Prioritize high-yield savings accounts (HYSA) for liquidity and safety, invest in diversified index funds for long-term growth, or allocate funds to retirement accounts like IRAs. Consider using the down payment for education, debt repayment, or a small business venture. Avoid speculative investments or non-essential purchases.

Mortgage denial often stems from factors like insufficient credit scores (Fannie Mae requires a minimum of 620), low income (typically 28% of monthly income on housing), or high debt-to-income ratios (≤43%). When homeownership is unattainable, alternative uses maximize financial stability. For example, HYSA offer 4.5-5.5% APY (FDIC data, 2023), outpacing standard savings accounts. Historically, the S&P 500 has returned ~10% annually (CAGR 1926-2022), making equities a viable growth option. Retirement accounts like IRAs provide tax advantages and compounding benefits. Education funding can boost earning potential by 8-12% (Bureau of Labor Statistics). Small business success rates are ~20% within five years (U.S. Small Business Administration), though proper planning improves outcomes. Avoid penalties by using 529 plans for education or robo-advisors for low-cost investing. Consult a financial advisor to tailor strategies to individual circumstances.