(If your current loan application is with a big bank or inexperienced loan officer)

There are a ton of underwriting guidelines that must be met for typical conventional loans.

Below are 50 ways your loan can be declined for a mortgage:

  1. Trying to buy too much house
  2. Debt To Income ratio maximums exceeded
  3. Credit score too low
  4. Not enough Income
  5. Inability to document income
  6. Using rental income to qualify
  7. Past delinquencies
  8. Past foreclosure, short sale, BK
  9. Mortgage rates rise and push payments too high
  10. Payment shock
  11. Loan To Value too high
  12. Inability to obtain secondary financing
  13. Underwater on mortgage
  14. Not enough assets
  15. Unable to verify assets (mattress money is a No No)
  16. Unpaid alimony or proof of child support income received
  17. Divorce issues
  18. No rental history
  19. No job
  20. Job history too limited – (2 year history same line of work)
  21. Changed jobs recently
  22. Self-employment issues
  23. Using business funds to qualify
  24. Limited credit history
  25. Spouse’s/ Co Borrowers credit score too low
  26. Too much debt
  27. Undisclosed liabilities
  28. New or closed credit accounts
  29. New/changed bank account
  30. Credit errors
  31. Unpaid tax liens
  32. You Co-signed for other loans – effecting your DTI
  33. Property not really owner-occupied
  34. Layered risk (lots of questionable things added together)
  35. Incomplete application
  36. Inability to verify key information
  37. Fraud/lying
  38. Undisclosed relationships with seller
  39. Attempting to buy multiple properties
  40. Property doesn’t appraise at value
  41. Defects with property
  42. Home business on property (Some are OK)
  43. Non-permitted work to the home (garage conversions)
  44. HOA issues
  45. Investor concentration in complex too high
  46. One entity owns too many units in complex
  47. Title issues
  48. Lender overlays (Some Big Banks make up extra rules)
  49. You own multiple properties
  50. Good old fashioned mistakes (human error)


Now some GOOD NEWS… if you are declined for a mortgage, it’s important to sit down with your loan officer and find out the reason behind that decision.

If you were honest on your loan application, have sufficient income and a half way decent credit score, sometimes working with a more skilled loan officer is what it takes to get it done.

If your loan was submitted to one of the big banks, realize they have 1 set of rules and if you don’t fit their rules… well, too bad.

A Local Broker will give you more choices and more programs to fit the different credit profiles and income scenarios, and they are usually less costly and have much faster turn times.

Choosing a local broker and loan officer with experience & persistence, will give you access to many more options and programs.

Experience makes all the difference sometimes, to make credit/ income situations fit the hundreds of programs available.

There is also the possibility of a red flag or some unknown issue. Learning what that problem is, and having a skilled loan officer that knows how to fix it, is key.

If you were declined for a mortgage and want a second chance or an experienced set of eyes to see what other alternatives you may have, please call 949-600-0944 or email me with your questions jackie@mylenderjackie.com   or visit www.mylenderjackie.com

Right Choice Mortgage, located in Orange County and serving all of California – Has an extensive lender network, we find the best possible solutions and will do what it takes to get it closed.

Our borrowers get the best pricing, fastest turn times and specialized programs to meet their varied needs.

Products offered: Purchase and Refinance, FHA, Conventional, VA & Portfolio. We have programs serving Jumbo Loans up to 3 Million and everything in between and down to 550 credit scores.