To handle a mortgage denial, first review the denial reason and credit report for errors. Correct inaccuracies and reapply. Improve credit score through timely payments and reducing debt. Save for a larger down payment (20% minimizes PMI) or explore FHA loans (3.5% down). Consult a housing counselor for personalized guidance. Consider alternative lenders like credit unions or private mortgage insurers. persistence and patience are key—many buyers reapply successfully after addressing issues.

Denial often stems from credit score gaps (median denial score at 580 vs. 620+ for approval, CFPB 2022) or insufficient down payments (FDIC data shows 20% down approvals drop 40% with <10% savings). Correcting credit report errors (7% of consumers have inaccuracies, FTC 2023) can boost scores by 50-100 points. FHA loans approve 65% of applicants with scores 580+, while VA loans (no down payment) approve 90% of eligible veterans (VA 2023). Housing counselors help 70% of clients secure loans within 6 months (NFCC 2022). Persistence: 35% of denied buyers reapply and succeed after 1-2 years (MBA Research 2021).