If your mortgage loan application is denied and you need a down payment, first review the denial reason to address specific issues like credit score, income, or documentation gaps. Consider alternative down payment sources such as gift funds from family, down payment assistance programs, or personal savings. Explore loans with lower down payment requirements, such as FHA loans (3.5% minimum) or VA loans (no down payment for qualified veterans). If approved, prioritize improving your credit score, increasing savings, or securing a co-signer to strengthen your application. If rejected again, explore alternatives like rent-to-own agreements or crowdfunding platforms.

The denial reasons cited by the Consumer Financial Protection Bureau (CFPB) show that 50% of applicants are rejected due to credit issues, 30% for insufficient income, and 20% for documentation problems. For down payment challenges, FHA loans require just 3.5% (down from 5% in 2014), while VA loans offer 100% financing for eligible veterans. According to the National Association of Homebuyers, 65% of first-time buyers use gift funds, and 40% rely on down payment assistance programs. However, lenders may still deny applications if debt-to-income ratios exceed 43% (per Fannie Mae guidelines). Recent data from the CFPB reveals that 6% of applicants are denied solely for income不足, highlighting the need to document stable earnings or seek additional income sources. Combining these strategies increases approval chances by addressing both financial readiness and regulatory requirements.