To obtain a mortgage after a denial, first review the denial letter to identify specific reasons such as credit score, income, or property issues. Address these factors: improve credit through timely payments and debt reduction, increase savings for a larger down payment, or seek alternative lenders like FHA, VA, or subprime mortgage companies. Consider a co-borrower with strong credit or explore down payment assistance programs. If denied due to property problems, repair or replace damaged elements.

Denial often stems from credit score requirements (e.g., FHA loans require at least 580), insufficient income (median denial threshold is 3.5x monthly payment), or property issues (e.g., 2022 FHFA data shows 28% of denials cite property condition). Alternative lenders, such as non-bank mortgage companies, offer flexible terms for borrowers with lower scores or higher debt-to-income ratios. For example, VA loans (zero down payment for veterans) and FHA loans (3.5% down) accounted for 12% and 8% of U.S. mortgages in 2023, respectively, per Mortgage Bankers Association. Credit repair can boost approval chances: a 2021 Federal Reserve study found borrowers with scores above 700 had a 65% approval rate versus 15% below 600. Down payment assistance programs, like HUD’s CHAS, helped 230,000 households in 2022 secure mortgages with 0-3% down, per CFPB. Combining these strategies increases approval likelihood by 40-60%, as shown in a 2023 National Association of Realtors survey.