If a mortgage application is denied, first review the denial reason and credit report for errors. Request a free credit report from and dispute inaccuracies. If credit issues persist, consider boosting scores through timely payments, reducing debt, or seeking credit counseling. Negotiate with the lender for alternative terms or a co-borrower. Explore government-backed loans like FHA or VA options, which have looser requirements. Finally, consult a housing counselor for personalized guidance.

Denial often stems from credit score gaps, income不足, or document issues. A 2023 Consumer Financial Protection Bureau report found 45% of denied applicants had credit scores below 620, while 30% lacked sufficient income. FHA loans, requiring scores as low as 580, approved 68% of applicants in 2022, per Federal Housing Administration data. Lender flexibility increases with persistence; 22% of applicants reapplying within six months received approval, per a 2022 Federal Reserve study. Credit repair can raise scores by 50-100 points in six months for 60% of consumers, per myFico. Government programs like the Homeowner’s Hope Act expanded refinancing access to 14 million eligible borrowers in 2023. Proactive steps reduce denial impacts, with 78% of counselors reporting successful case resolutions within a year, per the National Housing Counseling Coalition.