Condensed List of Reasons Why Mortgages Get Denied

  1. Loan amount to large for county loan limits 
  2. Income too low
  3. Inability to document income/ Inability to document income   
  4. Using rental income to qualify
  5. DTI ratio exceeded
  6. Mortgage rates rise and push payments too high
  7. Payment shock (current rent vs new mortgage payment)
  8. LTV too high
  9. Inability to obtain secondary financing
  10. Underwater on mortgage
  11. Not enough assets (2-3 months for conventional/ Zero for FHA)
  12. Unable to verify assets
  13. Buyer has misrepresented material facts
  14. Job history limited/ Inconsistent/ Changed Jobs Recently
  15. Collection Accounts
  16. Self-employment issues
  17. Using business funds to qualify
  18. Limited credit history
  19. Credit score too low
  20. Spouse’s credit score too low
  21. Past delinquencies
  22. Past foreclosure, short sale, BK
  23. Too much debt
  24. Undisclosed liabilities
  25. New or closed credit accounts
  26. New/changed bank account
  27. Credit errors
  28. Buyer's unpaid tax liens/ unpaid child support
  29. Unpaid alimony/other divorce issues
  30. Seller's unpaid taxes/ or lawsuits
  31. No rental history
  32. Fraud/lying
  33. Undisclosed relationships with seller (non arms-length transaction)
  34. Attempting to buy multiple properties (at the same time)
  35. Defects with property / non permitted work
  36. Giver of Gift $$ can't or won't provide proof of funds
  37. Poor communication between Escrow-RE agent-and Loan Officer
  38. HOA Issues 
  39. Investor concentration in complex too high (more than 50%)
  40. One entity owns too many units in complex (10% or more)
  41. Lack of loan officer experience
  42. Lender overlays (in addition to FHA / Coventional Basic Guidelines)
  43. Buyer has too many properties with mortgages (10 is Max)
  44. Co-signer for other loans
  45. Property not really owner-occupied
  46. Layered risk (lots of questionable things added up)
  47. Incomplete application / Incomplete information 
  48. Inability to verify key information
  49. Plain old mistakes

Call me if you have any questions 909-452-2891