The mortgage denial rate is the share of applications that lenders turn down, out of those that were either originated or denied. In the 2023 HMDA data — the most comprehensive public record of US mortgage lending — it varied enormously by state, from around 30% to under 12%.
Informational only, from HMDA data. Denial rate reflects who applies and for what kind of loan as much as lender behavior. It is not proof of discrimination or strict lenders on its own, and it is not advice about your own application. Verify at the HMDA Data Browser.
States with the highest denial rates
| Rank | State | Denial rate |
|---|---|---|
| 1 | Louisiana | 30.3% |
| 2 | Mississippi | 29.8% |
| 3 | West Virginia | 25.1% |
| 4 | New Mexico | 24.6% |
| 5 | Alabama | 24.4% |
These cluster in the Deep South. See the full highest denial-rate ranking for all 51 states.
States with the lowest denial rates
| Rank | State | Denial rate |
|---|---|---|
| 1 | North Dakota | 11.5% |
| 2 | Nebraska | 12.1% |
| 3 | Minnesota | 12.2% |
| 4 | South Dakota | 12.6% |
| 5 | Iowa | 12.7% |
The lowest denial rates cluster in the Upper Midwest and Plains. See the full lowest denial-rate ranking.
Why the gap is so wide
A denial rate near 30% in one state and 12% in another does not mean lenders in the first are twice as strict. The bigger drivers are:
- Applicant credit and income relative to home prices. States where incomes are lower against the cost of a home see more marginal applications.
- Loan-type mix. A larger share of FHA and other higher-risk applications tends to push the overall denial rate up.
- Refinance pressure. Refinance applications are often denied at a higher rate than purchase loans; with rates well above the lows of 2021, many cash-out refinances no longer pencil out.
How to read your own odds
The state figure is context, not a verdict on your file. Approval depends on your credit, debt-to-income ratio, down payment and the property. See why mortgage applications get denied for the specific reasons lenders report, and look up your own state’s purchase vs refinance denial rates — they often diverge.
Sources
All figures are from the HMDA Data Browser (FFIEC/CFPB, 2023 reporting year, public domain). Denial rate = denied ÷ (originated + denied). See our methodology.