To address a denied mortgage application, first review the denial letter to identify specific reasons for rejection. Common factors include credit score deficiencies, insufficient income, high debt-to-income ratios, or documentation errors. Correcting these issues is critical. For example, if credit score is the issue, dispute inaccuracies on your credit report via or file a formal dispute with the three major bureaus (Equifax, Experian, TransUnion). If income is insufficient, consider adding a co-borrower with stronger financials or seeking a different loan program like an FHA loan, which typically requires a lower credit score (580+) and smaller down payment (3.5%). Additionally, ensure all documentation submitted is complete and up-to-date, including tax returns, pay stubs, and asset verification. If the denial appears unjustified, consult a housing counselor or attorney to explore legal recourse under the Equal Credit Opportunity Act (ECOA) or Fair Housing Act (FHA). Reapplying after addressing these areas increases approval chances. According to the Consumer Financial Protection Bureau (CFPB), 30% of mortgage denials in 2022 stemmed from credit report errors, while 25% were due to insufficient income documentation. The Federal Housing Administration (FHA) reports that applicants reapplying with corrected credit scores and debt ratios see a 60% approval rate. Proactive steps like credit repair, documentation verification, and exploring alternative loan products are essential to overcoming mortgage denial. Data from the U.S. Department of Housing and Urban Development (HUD) highlights that 15% of successful housing discrimination claims in 2022 involved mortgage denials, underscoring the importance of reviewing denial reasons for potential legal violations. By systematically addressing weaknesses and leveraging specialized loan programs, applicants can significantly improve their approval odds.