 TITLE: Why Would a Mortgage Application Get Denied? CONTENT: Reasons Why Your Mortgage Could Get Declined\n--------------------------------------------\nThere are several common reasons a mortgage application could get declined.\n*   **Low credit score**: The minimum credit score needed to secure a mortgage varies depending on the lender you choose and the type of mortgage you're seeking. For a conventional mortgage or VA loan, the minimum FICO® Score☉ needed is typically about 620; for a USDA loan, it's usually 640. You can get an FHA loan with a credit score as low as 500, but you will have to make a bigger down payment than if your credit score were higher. (See below for specifics on each type of loan.)\n*   **No credit history**: If you don't use credit cards or have never taken out a loan, you may have what's called a \"thin\" credit file. This means you have a very minimal credit history—or none at all. Without a credit history they can use to assess your creditworthiness, lenders will find it difficult to approve you for a mortgage unless they are willing to find other ways you can prove financial responsibility.\n*   **High debt-to-income (DTI) ratio**: To assess your ability to repay the loan, lenders will review the percentage of your monthly income that goes to monthly debts. It may be harder to secure a loan if your housing payment is 28% or more of your gross monthly income (31% or more if you're applying for an FHA loan).\n*   **Small down payment**: Putting your own money toward your home purchase shows lenders you have skin in the game, making you more likely to repay the mortgage. The bigger down payment you can make, the better chance you have of being approved for a mortgage.\n*   **Missing application information**: Even if you have good credit and a solid income, your mortgage application may be denied if you omit or forget to include necessary information. To avoid disappointment, review your application carefully to make sure it's complete before submitting it.\n*   **Recent job change**: Mortgage lenders want to see stability; recent job changes may raise doubts about your ability to hold a steady job. Having the same job for at least two years may help your chances of approval. END