Statistics · 2026 · Real Estate
Mortgage Denial Rate Statistics (2026)
Lenders denied 13.9% of U.S. home-purchase mortgage applications in 2025, 607,818 of the 4.36 million that reached a decision, per federal HMDA data published in June 2026. That is down from 14.4% in 2024 and a 15.0% high in 2023. For a standard owner-occupied first mortgage the rate was 8.7%, and a high debt-to-income ratio was the most common reason.
Key takeaways
- 13.9% of 2025 home-purchase applications were denied, down from 14.4% in 2024.
- Standard owner-occupied first mortgages had a lower 8.7% denial rate.
- Debt-to-income was the first-listed reason on 32.9% of denials; credit history was next at 27.5%.
- Applicants with a debt-to-income ratio above 60% were denied 78% of the time, against 4.4% at 20% to 30%.
- Manufactured-home purchase applications were denied 54.2% of the time, versus 9.6% for site-built homes.
What is the mortgage denial rate?
In 2025, 13.9% of home-purchase mortgage applications that reached a decision were denied, per HMDA data from the FFIEC. That is 607,818 denials out of 4.36 million applications. Lenders made 3.59 million home-purchase loans worth $1.45 trillion, so roughly one in seven applications that got a decision was turned down.
1. 13.9% of home-purchase applications denied
The FFIEC HMDA Data Browser (2025 Snapshot National Loan-Level Dataset) shows 607,818 denials among 4,358,716 home-purchase applications that ended in an origination, an approval the borrower did not accept, or a denial. Withdrawn and incomplete files are excluded.
2. 8.7% for a standard owner-occupied first mortgage
Limiting the data to first-lien, closed-end loans on site-built one-to-four unit homes the buyer will live in, with no business purpose, leaves 3,139,327 applications and an 8.7% denial rate (WealthyBud arithmetic).
3. 3.59 million purchase loans, $1.45 trillion
Lenders originated 3,592,033 home-purchase loans in 2025, up from 3,534,113 in 2024. Another 158,865 applications were approved but not taken up by the borrower.
The FFIEC announcement of the 2025 HMDA data (June 23, 2026) says 4,782 institutions reported 2025 data. HMDA covers most U.S. mortgage lending, but not every lender.
Are mortgage denial rates going up or down?
The home-purchase denial rate fell to 13.9% in 2025 from 14.4% in 2024. It peaked at 15.0% in 2023, the highest of the eight years shown, and was lowest at 11.7% in 2021. Refinance applications rose 44% in 2025 while their denial rate eased, per the same HMDA data.
4. Down 0.5 points from 2024
The home-purchase denial rate was 13.94% in 2025, 14.45% in 2024 and 15.03% in 2023. The 2021 low was 11.67%.
| Year | Applications | Denied | Denial rate | Note |
|---|---|---|---|---|
| 2018 | 5,196,305 | 676,901 | 13.0% | |
| 2019 | 5,345,166 | 647,685 | 12.1% | |
| 2020 | 5,859,387 | 746,132 | 12.7% | |
| 2021 | 6,337,348 | 739,672 | 11.7% | low |
| 2022 | 5,296,326 | 716,531 | 13.5% | |
| 2023 | 4,254,263 | 639,352 | 15.0% | peak |
| 2024 | 4,319,109 | 623,942 | 14.4% | |
| 2025 | 4,358,716 | 607,818 | 13.9% |
5. Refinance denials: 20.4%; cash-out: 30.1%
Refinance applications climbed to 1,409,791 in 2025 from 975,958, and their denial rate eased to 20.4% from 22.9%. Home-improvement loans were denied 34.8% of the time.
| Loan purpose | 2025 applications | 2025 denial rate | 2024 denial rate |
|---|---|---|---|
| Home purchase | 4,358,716 | 13.9% | 14.4% |
| Refinance | 1,409,791 | 20.4% | 22.9% |
| Cash-out refinance | 1,449,313 | 30.1% | 32.7% |
| Home improvement | 1,020,569 | 34.8% | 37.4% |
| Other purpose | 1,117,967 | 38.1% | 42.2% |
The purpose table counts every lien type, including home-equity lines of credit.
Why are mortgage applications denied?
Lenders listed debt-to-income ratio as the first reason on 32.9% of 2025 home-purchase denials and credit history on 27.5%, per HMDA. Collateral, such as an appraisal below the contract price, came third at 11.2%. Lenders may report up to four reasons for each denial.
6. Debt-to-income: 32.9% of denials
199,809 of the 607,818 home-purchase denials in 2025 listed debt-to-income ratio first, and 231,003 listed it anywhere among up to four reasons.
7. Credit history: 27.5%
Credit history was the first reason on 167,170 denials and appeared anywhere on 196,911, making it the second most common reason on both counts.
8. Collateral: 11.2%; insufficient cash: 4.2%
Collateral problems led 68,327 denials and a shortage of cash for the down payment or closing costs led 25,564.
| Denial reason | First-listed reason | Share of denials | Listed anywhere |
|---|---|---|---|
| Debt-to-income ratio | 199,809 | 32.9% | 231,003 |
| Credit history | 167,170 | 27.5% | 196,911 |
| Collateral | 68,327 | 11.2% | 77,764 |
| Other | 45,823 | 7.5% | 96,320 |
| Unverifiable information | 40,366 | 6.6% | 56,964 |
| Credit application incomplete | 38,417 | 6.3% | 43,762 |
| Insufficient cash (down payment, closing costs) | 25,564 | 4.2% | 92,327 |
| Employment history | 10,977 | 1.8% | 22,441 |
| Mortgage insurance denied | 250 | under 0.1% | 583 |
Shares use all denials as the base, including lenders exempt from reporting reasons.
How do debt-to-income and income affect approval?
Debt-to-income is the strongest signal in the data. Among standard owner-occupied applications, those with a ratio above 60% were denied 78.0% of the time, while those between 20% and 30% were denied 4.4%. Applicants earning under $50,000 were denied 24.4% of the time.
9. Over 60% DTI: 78.0% denied
85,461 standard applications reported a debt-to-income ratio above 60%, and 66,656 were denied. In the 50% to 60% band the rate was 15.9%.
10. 20% to 30% DTI: 4.4% denied
Rates stay between 4.4% and 5.9% from 20% up to 49% DTI, then jump above 50%.
| Debt-to-income ratio | Applications | Denial rate |
|---|---|---|
| Under 20% | 114,760 | 10.3% |
| 20% to under 30% | 399,412 | 4.4% |
| 30% to under 36% | 456,165 | 4.5% |
| 36% | 91,837 | 4.7% |
| 40% | 114,467 | 4.9% |
| 45% | 117,406 | 5.9% |
| 49% | 192,892 | 5.6% |
| 50% to 60% | 345,044 | 15.9% |
| Over 60% | 85,461 | 78.0% |
11. Income under $50,000: 24.4% denied
Applicants reporting under $50,000 of income were denied 24.4% of the time, compared with 5.6% for incomes of $150,000 to $249,999.
Which loan types are denied most often?
Among standard owner-occupied purchase applications, FHA loans were denied 12.7% of the time and USDA loans 12.5%, against 7.3% for conventional loans and 8.1% for VA loans. FHA loans accept lower credit scores and USDA loans can need no down payment, but HMDA does not show why their denial rates are higher.
12. FHA 12.7% vs conventional 7.3%
FHA purchase applications were denied 89,999 times out of 709,855. Conventional loans, the largest group at 2,034,914 applications, had the lowest denial rate of the four types.
| Loan type | Applications | Denied | Denial rate |
|---|---|---|---|
| Conventional | 2,034,914 | 148,538 | 7.3% |
| FHA | 709,855 | 89,999 | 12.7% |
| VA | 356,437 | 28,728 | 8.1% |
| USDA (FSA/RHS) | 38,121 | 4,768 | 12.5% |
How do denial rates differ by race and ethnicity?
Among standard owner-occupied purchase applications in 2025, Black applicants were denied 17.0% of the time, Hispanic or Latino applicants 12.8%, Asian applicants 9.3% and White applicants 7.2%. HMDA does not include credit scores, so these gaps are not adjusted for credit.
13. Black applicants: 17.0% denied; White applicants: 7.2%
The Black applicant denial rate was 2.4 times the White rate on standard owner-occupied purchase applications in 2025 (WealthyBud arithmetic on HMDA counts).
14. Hispanic or Latino applicants: 12.8% denied
Hispanic or Latino applicants of any race were denied 12.8% of the time, against 7.7% for non-Hispanic applicants.
| Applicant group | Applications | Denial rate |
|---|---|---|
| White | 2,097,215 | 7.2% |
| Asian | 221,043 | 9.3% |
| Black or African American | 259,362 | 17.0% |
| American Indian or Alaska Native | 22,367 | 12.9% |
| Hispanic or Latino (any race) | 447,980 | 12.8% |
| Not Hispanic or Latino | 2,202,847 | 7.7% |
Race and ethnicity use HMDA’s derived fields, which combine applicant and co-applicant answers. The public data cannot separate these gaps from differences in income, debt or credit.
Are investment property loans harder to get?
Somewhat. For first-lien, site-built home-purchase loans, applications on investment properties were denied 12.5% of the time in 2025, against 8.7% for homes the buyer will live in and 8.5% for second homes. Lenders typically ask for larger down payments and reserves on rentals.
15. Investment properties: 12.5% denied
There were 344,954 first-lien, site-built home-purchase applications for investment properties in 2025, and 43,222 were denied.
16. Manufactured homes: 54.2% denied
428,401 home-purchase applications for manufactured homes produced 232,242 denials, against 9.6% for site-built homes. HMDA counts manufactured homes separately from site-built homes.
See the best places to buy rental property and most expensive places to rent.
Which states and metros have the highest denial rates?
Among the 50 states and Washington, D.C., Florida had the highest denial rate on standard owner-occupied purchase applications in 2025, 12.8%, and North Dakota the lowest, 4.6%. Among large metros with at least 20,000 applications, Orlando-Kissimmee-Sanford, FL was highest at 13.1% and Kansas City, MO-KS lowest at 4.6%.
17. Florida: 12.8%; North Dakota: 4.6%
Mississippi (11.2%) and Texas (10.2%) were next highest. Idaho (4.9%) was second lowest.
| State (5 highest, then 5 lowest) | Applications | Denial rate |
|---|---|---|
| Florida | 263,810 | 12.8% |
| Mississippi | 22,697 | 11.2% |
| Texas | 331,288 | 10.2% |
| Louisiana | 33,972 | 10.1% |
| Hawaii | 8,604 | 10.1% |
| Nebraska | 19,467 | 5.8% |
| Oregon | 38,046 | 5.6% |
| Minnesota | 58,871 | 5.2% |
| Idaho | 24,438 | 4.9% |
| North Dakota | 6,679 | 4.6% |
18. Orlando-Kissimmee-Sanford, FL: 13.1% denied
Among 35 metro areas and metropolitan divisions with at least 20,000 standard applications, Kansas City, MO-KS had the lowest rate, 4.6%.
| Metro area (5 highest, then 5 lowest) | Applications | Denial rate |
|---|---|---|
| Orlando-Kissimmee-Sanford, FL | 32,164 | 13.1% |
| New York-Jersey City-White Plains, NY-NJ | 48,302 | 12.0% |
| Houston-Pasadena-The Woodlands, TX | 85,552 | 11.7% |
| Tampa, FL | 31,744 | 11.5% |
| Atlanta-Sandy Springs-Roswell, GA | 55,955 | 11.4% |
| Cincinnati, OH-KY-IN | 25,949 | 6.3% |
| Denver-Aurora-Centennial, CO | 37,879 | 6.2% |
| Portland-Vancouver-Hillsboro, OR-WA | 24,414 | 5.4% |
| Minneapolis-St. Paul-Bloomington, MN-WI | 42,444 | 4.9% |
| Kansas City, MO-KS | 26,095 | 4.6% |
Compare local prices and inventory on WealthyBud market pages such as Orlando and Houston.
What this means for homebuyers and investors
Most buyers who apply get approved, but debt load decides many denials. The typical approved standard loan in 2025 was $335,000 on a $395,000 home, and the median combined loan-to-value ratio was 90%. Lowering debt before applying is the clearest lever the data show.
19. Typical approved loan: $335,000
Among 2,787,322 standard home-purchase loans originated in 2025, the median loan was $335,000 and the median home value $395,000. 44.9% had a combined loan-to-value ratio of 95% or more.
20. Median rate on approved conventional 30-year loans: 6.50%
The median note rate on 1,711,669 conventional 30-year standard purchase loans originated in 2025 was 6.50%, and the median borrower income was $116,000.
- Pay down card and auto balances before applying, since debt-to-income is the top reason lenders give.
- Check your credit reports for errors well ahead of an application, because credit history is the second reason.
- Budget for an appraisal gap; collateral led about one in nine denials.
For rates, see mortgage rate statistics; for debt loads that drive DTI, see auto loan and credit card debt statistics. To estimate the income a home requires, use income needed to buy a home.
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