If your mortgage loan application is denied, first review the denial letter to identify specific reasons such as credit score, income, debt-to-income ratio, or property issues. Correct any errors in your financial documents and submit a written request for a copy of your credit report to dispute inaccuracies. Consider improving your credit score by paying down debts, reducing credit utilization, or resolving collections. Save for a larger down payment to qualify for a lower loan-to-value ratio, which may improve approval chances. Explore alternative loan options like FHA, VA, or USDA loans with relaxed requirements. Consult a housing counselor or mortgage broker for personalized guidance.

Data from the Consumer Financial Protection Bureau (CFPB) shows that 50% of mortgage denials in 2022 were due to credit score issues, with applicants scoring below 580 facing near-total rejection. Conversely, borrowers with scores above 760 had a 95% approval rate. The Federal Housing Administration (FHA) reports that a 3.5% down payment and 580+ credit score qualify for its loans, while a 10% down payment reduces mortgage insurance costs. A 2023 study by the National Association of Realtors found that 60% of denied applicants improved approval rates after 6–12 months of credit repair and increased savings. Additionally, 30% of applicants who sought counseling through NeighborWorks America saw denial rates drop by 25% within a year. These statistics underscore the importance of targeted financial adjustments and leveraging specialized resources to address denial factors effectively.