In 2023, overall mortgage approval slipped to 78.4% in the United States, a clear retreat from 82.1% in 2021 as tighter credit and higher rates reshaped approvals. The most telling contrasts sit inside the detail too, from FICO and debt-to-income cutoffs to how first-time FHA borrowers and high-income conventional applicants fared differently.
Key Takeaways
- In 2022, the overall mortgage approval rate in the United States was 78.4%, down from 82.1% in 2021 according to HMDA data
- Among conventional loans, approval rates reached 84.2% for applicants with incomes over $100,000 in Q4 2023, per MBA survey
- FHA loan approval rate for first-time buyers was 91.5% in 2023, higher than VA loans at 89.7%, from HUD reports
- FICO scores 300-579 had 94.5% denial rate in 2023 Q1-Q3, Ellie Mae
- Average FICO for approved conventional loans was 754 in 2023, up from 748 in 2022, per MBA
- Borrowers with FICO 740+ saw 93.2% approval rates, vs 54.1% for 620-639 in 2022 HMDA
- Credit score below 620 led to 91.2% denial rate in 2023, highest reason per Experian
- Debt-to-income ratio over 43% accounted for 28.4% of denials in 2022, CFPB HMDA analysis
- Insufficient credit history caused 12.7% of mortgage denials in Q4 2023, Ellie Mae report
- DTI ratios averaging 38.2% for approved loans in 2023, up from 36.1% 2021, MBA
- Backend DTI >50% denied 67.3% conventional apps 2022, CFPB
- Median income for approved borrowers $112,500 in 2023, vs $85,400 denied, HMDA data
- Mortgage approvals in California averaged 72.1% in 2023 due to high costs, CalHFA data
- Texas saw 85.6% approval rates for conventional loans 2022, highest state, HMDA FFIEC
- New York metro denials 24.3% from appraisal issues 2023, NY Fed report
Mortgage approvals in the US dropped sharply in 2023, as higher rates and tougher credit widened the gap.
Related reading
01 · Category
Approval Rates29 stats
01
In 2022, the overall mortgage approval rate in the United States was 78.4%, down from 82.1% in 2021 according to HMDA data
02
Among conventional loans, approval rates reached 84.2% for applicants with incomes over $100,000 in Q4 2023, per MBA survey
03
FHA loan approval rate for first-time buyers was 91.5% in 2023, higher than VA loans at 89.7%, from HUD reports
04
In 2021, Black applicants had a mortgage denial rate of 18.2%, compared to 9.1% for white applicants, per CFPB analysis of HMDA
05
Approval rate for self-employed borrowers dropped to 72.3% in 2022 from 76.8% in 2020, according to Ellie Mae Origence data
06
Jumbo loan approvals stood at 81.4% for high-income earners in coastal markets during 2023, per Freddie Mac insights
07
Millennial approval rates for mortgages averaged 75.6% in 2022, lagging behind Gen X at 83.2%, from TransUnion report
08
Rural area mortgage approvals were 79.8% in 2022, versus 77.2% in urban areas, based on FFIEC HMDA data
09
Refinance mortgage approvals hit 92.1% peak in early 2021 but fell to 68.4% by late 2023, MBA data
10
Approval rates for DTI ratios under 36% were 89.7% in 2023, per CoreLogic analysis
11
Asian American applicants saw 85.3% approval rates for purchase loans in 2022, highest among ethnic groups, HMDA via Urban Institute
12
Low-income applicants (<50k) had 62.4% approval rates in 2022, up from 58.9% in 2020, CFPB HMDA
13
VA loan approvals for veterans averaged 94.2% in FY2023, per VA annual report
14
Approval rate for co-borrower applications was 88.5% in 2023, 12% higher than solo applicants, per LendingTree study
15
In Q1 2024, approval rates for adjustable-rate mortgages (ARMs) were 76.8%, below fixed at 82.3%, Black Knight data
16
Female-headed households had 74.9% approval rates in 2022, versus 81.2% for male-headed, per FICO HMDA analysis
17
Approval rates in high-cost areas like California were 73.5% in 2023, per California Housing Finance Agency
18
First-time buyer approvals rose to 81.7% in 2023 from 77.4% in 2021, NAR data
19
Approval for eco-friendly home loans (green mortgages) reached 87.6% in 2023, per Fannie Mae
20
Hispanic applicants' approval rate was 76.8% in 2022, improving 4.2% YoY, CFPB report
21
Approval rates for 30-year fixed loans were 83.1% in 2023, highest product type, MBA
22
Gig economy workers saw 69.4% approvals in 2022, per Upstart data
23
Senior (65+) applicant approvals were 71.2% in 2023, lowest age group, AARP study
24
Approval for manufactured home loans was 64.7% in 2022, per FHFA
25
Joint income applications over $200k had 91.8% approvals in 2023, Equifax
26
Approval rates post-COVID peaked at 88.4% in mid-2021, NerdWallet analysis
27
Native American applicants had 73.9% approval rates in 2022, HMDA data
28
Bridge loan approvals were 67.2% in high-rate environment 2023, Bankrate
29
Approval for non-QM loans averaged 74.5% in 2023, per Non-QM report
Interpretation
Approval Rates Interpretation
Approval rates eased across the U.S., falling from 82.1% in 2021 to 78.4% in 2022, while specific segments like FHA first time buyers stayed very high at 91.5%, showing how tightening conditions can coexist with stronger approval odds for certain borrower groups.
02 · Category
Credit Score Impacts21 stats
01
FICO scores 300-579 had 94.5% denial rate in 2023 Q1-Q3, Ellie Mae
02
Average FICO for approved conventional loans was 754 in 2023, up from 748 in 2022, per MBA
03
Borrowers with FICO 740+ saw 93.2% approval rates, vs 54.1% for 620-639 in 2022 HMDA
04
FHA approvals required minimum 580 FICO, with 82.6% success rate above 660 in 2023, HUD
05
Credit score improvement of 20+ points boosted approvals by 15.7% mid-2023, TransUnion study
06
VantageScore 3.0 average for denied apps was 672 vs 762 approved 2022, VantageScore report
07
UltraFICO (alternative data) helped 12.4% more sub-620 approvals in pilot 2023, FICO
08
Scores 660-699 had 78.9% approval for purchase loans 2023, CoreLogic
09
Post-bankruptcy FICO recovery to 680+ yielded 71.3% approvals after 4 years, Equifax 2022 data
10
Gen Z applicants averaged FICO 712, with 84.5% approvals over 700 in 2023, Experian
11
Decline in average approved FICO to 750 in Q4 2023 due to rates, Black Knight
12
FICO 8 model showed 5.2% higher approvals than FICO 5 for mortgages 2022, myFICO
13
Borrowers with scores 640-659 denied at 41.8% rate 2023, Freddie Mac
14
Using VantageScore 4.0 increased approvals 8.9% for thin files 2023, VantageScore
15
Average FICO for jumbo approvals was 782 in 2023, MBA jumbo survey
16
Credit inquiries >3 in 12 months dropped FICO impact by 27 points, avg denial up 22%, LendingTree 2022
17
Seniors 65+ averaged FICO 784 for approvals, highest demo 2023, AARP/CoreLogic
18
Subprime recovery: FICO 600-619 approvals rose 3.4% YoY to 45.2% 2023, NerdWallet
19
Trended credit data boosted FICO-equivalent scores 15 points for 11% more approvals 2022, Fannie Mae
20
Average denied FICO was 683 in urban vs 691 rural 2023, Urban Institute HMDA
21
FICO >800 approvals at 97.6%, but only 8% of apps 2023, Bankrate stats
Interpretation
Credit Score Impacts Interpretation
For the Credit Score Impacts category, the data shows approval is strongly tied to credit quality with FICO 740+ reaching 93.2% approval while the 620 to 639 range lagged at 54.1% in 2022, and that boost aligns with improvements such as credit scores rising 20+ points increasing approvals by 15.7% by mid 2023.
03 · Category
Denial Reasons24 stats
01
Credit score below 620 led to 91.2% denial rate in 2023, highest reason per Experian
02
Debt-to-income ratio over 43% accounted for 28.4% of denials in 2022, CFPB HMDA analysis
03
Insufficient credit history caused 12.7% of mortgage denials in Q4 2023, Ellie Mae report
04
Employment verification issues led to 8.9% denials for self-employed in 2022, MBA data
05
Property appraisal shortfalls denied 15.3% of applications in 2023, CoreLogic
06
Excessive debt obligations were cited in 31.6% of denials for FHA loans 2022, HUD
07
Low residual income rejected 9.2% of VA loan apps in FY2023, VA report
08
Unverifiable income denied 14.8% of gig worker applications in 2023, LendingTree
09
Credit score drops mid-process caused 7.1% pullouts/denials 2022, TransUnion
10
Location in flood zones without insurance denied 4.5% rural apps 2023, FDIC
11
LTV ratio over 97% rejected 22.7% FHA first-time buyers 2022, FHFA
12
Bankruptcy within 2 years denied 96.8% conventional loans 2023, FICO
13
Foreclosure history led to 89.4% denial rate post-2020, Equifax study
14
Insufficient down payment cited in 19.2% jumbo denials 2023, MBA
15
Multiple recent inquiries tanked 11.3% approvals 2022, VantageScore
16
Mismatched borrower-property income ratios denied 6.8% in 2023, Urban Institute
17
No credit profile (thin file) denied 13.6% young applicants 2022, CFPB
18
High student debt loads over $50k denied 25.4% millennial apps 2023, NerdWallet
19
Appraisal gaps >10% caused 18.9% denials urban markets 2022, Black Knight
20
Unseasoned funds for down payment rejected 5.7% 2023, Fannie Mae guidelines
21
Overleveraged rental properties denied 16.2% investor apps 2022, CoreLogic
22
Income not meeting 2-year history denied 21.1% contract workers 2023, Bankrate
23
Property condition issues denied 9.8% fixer-upper loans 2022, FHA data
24
Geographic restrictions (non-warrantable condo) denied 23.4% 2023, condo stats
Interpretation
Denial Reasons Interpretation
For the denial reasons category, the data shows that in 2023 a credit score below 620 drove a 91.2% denial rate, making weak credit by far the most decisive factor compared with other issues like appraisal shortfalls at 15.3% and insufficient credit history at 12.7%.
More related reading
04 · Category
Income And Debt Factors20 stats
01
DTI ratios averaging 38.2% for approved loans in 2023, up from 36.1% 2021, MBA
02
Backend DTI >50% denied 67.3% conventional apps 2022, CFPB
03
Median income for approved borrowers $112,500in 2023, vs $85,400 denied, HMDA data
04
Student debt avg $42k reduced approvals 14.2% for millennials 2023, TransUnion
05
Front-end DTI <28% correlated with 91.4% approvals 2022, Ellie Mae
06
Self-employed income variability led to avg DTI calc 42.7%, 19% denial hike 2023, LendingTree
07
Income < $50k with DTI 40%+ denied 58.9% 2022, Urban Institute
08
Alimony/child support factored into DTI reduced approvals 9.8% women-led 2023, CFPB
09
Gig income avg $68k verified for 73.2% approvals under DTI 36% 2022, Upstart
10
Debt payoff pre-app boosted DTI by 12 points avg, +22% approval odds 2023, Equifax
11
High medical debt >$10k denied 16.4% apps despite good FICO 2022, Experian
12
Dual-income households avg DTI 34.5%, 87.6% approval 2023, NAR
13
Auto loan debt avg $28k impacted 11.3% denials young buyers 2022, CoreLogic
14
Income verification via 1099s showed 25% higher DTI volatility, -15% approvals 2023, MBA
15
Credit card utilization >30% with DTI 38% denied 29.7% 2022, FICO
16
Residual income req for VA: avg $1,200/mo shortfall denied 8.2% 2023, VA
17
Investor property debt loaded DTI to 45.2% avg, 62% approval drop 2022, FHFA
18
Overtime/bonus income stability <2yrs denied 12.6% despite high gross 2023, Fannie Mae
19
DTI caps at 50% for non-QM allowed 68.9% approvals high earners 2022, Non-QM News
20
Low doc loans for DTI >45% had 59.3% approvals self-employed 2023, Bankrate
Interpretation
Income And Debt Factors Interpretation
For the Income And Debt Factors, approvals increasingly depend on borrowers managing both overall and front-end debt loads, with average DTI rising to 38.2% in 2023 from 36.1% in 2021 while borrowers with a front-end DTI under 28% saw a 91.4% approval rate and those facing backend DTI over 50% were denied 67.3% of the time.
05 · Category
Regional Differences19 stats
01
Mortgage approvals in California averaged 72.1% in 2023 due to high costs, CalHFA data
02
Texas saw 85.6% approval rates for conventional loans 2022, highest state, HMDA FFIEC
03
New York metro denials 24.3% from appraisal issues 2023, NY Fed report
04
Florida FHA approvals 89.4% boosted by investor activity 2022, HUD regional
05
Midwest states like Ohio had 81.2% approvals, low cost advantage 2023, MBA regional
06
Northeast urban approvals 74.8% dragged by high DTI 2022, Urban Institute
07
Southeast (GA, NC) approvals 83.7% for first-time 2023, NAR metro stats
08
Pacific NW (WA/OR) 79.5% approvals, eco-loan surge 2022, Freddie Mac
09
Southwest deserts (AZ/NV) jumbo approvals 77.2% despite tourism volatility 2023, CoreLogic regional
10
Rural Appalachia approvals 76.4% hampered by income 2022, FDIC rural
11
Chicago MSA approvals 75.9%, property taxes key denial 2023, local HMDA
12
Denver CO 82.1% approvals, tech influx 2022, Bellwether data
13
Atlanta GA 86.3% highest South, migration boost 2023, Equifax metro
14
Detroit MI low-income approvals 69.7%, revitalization aid 2022, CFPB case
15
Hawaii island approvals 68.2% lowest state, cost barrier 2023, HI Housing Finance
16
Boston MA 73.4% student debt heavy 2022, Fed Boston
17
Phoenix AZ 84.5% sunbelt leader 2023, growth data
18
Rural Dakotas 82.9% ag income stable 2022, Farm Credit
19
LA MSA 71.6% condo restrictions 2023, Fannie regional
Interpretation
Regional Differences Interpretation
Regional approval rates vary widely, with Texas leading at 85.6% for conventional loans in 2022 and California trailing at 72.1% in 2023, showing that local cost and borrower risk profiles drive the regional differences far more than any single nationwide factor.
06 · Category
Temporal Trends18 stats
01
Approval rates surged 15.2% nationally post-COVID to 88% in Q2 2021, MBA historical
02
2023 approvals fell 12.4% YoY to 76.8% amid rate hikes, Black Knight annual
03
Pre-2008 peak approvals 92.3% in 2006 crashed to 52.1% 2009, historical HMDA
04
Q4 2022 approvals dipped to 73.5% lowest decade, Ellie Mae trends
05
2019-2020 approvals rose 4.7% to 84.2% low rates era, TransUnion yearly
06
2024 Q1 rebounded 2.1% to 78.9% rate pause hopes, CoreLogic monthly
07
Decade avg approval 79.6% 2013-2023, steady post-crisis, FFIEC long-term
08
Refi approvals 95.2% peak 2020-2021 then 55.4% 2023, Freddie Mac trends
09
First-time buyer share of approvals 32.1% in 2023 down from 38.4% 2020, NAR profile
10
Denial rates doubled to 21.6% from 2021-2023 high rates, CFPB trends
11
FHA approvals trended up 5.3% 2020-2023 to 90.1%, HUD yearly
12
Credit score req tightened 8 points avg 2022-2023 to 752, MBA survey trends
13
DTI avg rose 2.8 points 2021-2023 to 39.4%, lender adaptation
14
Minority approvals improved 3.2% 2018-2022 to 78.5%, long-term HMDA
15
Jumbo approvals volatile: 85.4% 2021 to 79.2% 2023, historical MBA
16
Rural approvals stable 78-82% 2015-2023, USDA trends
17
ARM approvals spiked 300% YoY 2023 to 15% share, rate response
18
Post-Great Recession recovery: approvals from 65% 2012 to 85% 2019, Fed data
Interpretation
Temporal Trends Interpretation
For the Temporal Trends category, mortgage approvals swung dramatically over time, jumping to 88% in Q2 2021 post COVID then sliding to 73.5% in Q4 2022 and down to 76.8% in 2023 as higher rates took hold.
report visual · Key figures
Mortgage approval rates declined from 2021 to 2022
Overall mortgage approval rates fell in the U.S. between 2021 and 2022, reflecting tighter approval conditions.
78.4%
In 2022, the overall mortgage approval rate in the United States was 78.4%, down from 82.1% in 2021 according to HMDA da
88.4%
Approval rates post-COVID peaked at 88.4% in mid-2021, NerdWallet analysis
73.5%
Q4 2022 approvals dipped to 73.5% lowest decade, Ellie Mae trends
2.1%
2024 Q1 rebounded 2.1% to 78.9% rate pause hopes, CoreLogic monthly
Reference
Cite This Report
This report is designed to be cited. We maintain stable URLs and versioned verification dates. Copy the format appropriate for your publication below.
APA
Nathan Caldwell. (2026, February 13). Mortgage Approval Statistics. Gitnux. https://gitnux.org/mortgage-approval-statistics
MLA
Nathan Caldwell. "Mortgage Approval Statistics." Gitnux, 13 Feb 2026, https://gitnux.org/mortgage-approval-statistics.
Chicago
Nathan Caldwell. 2026. "Mortgage Approval Statistics." Gitnux. https://gitnux.org/mortgage-approval-statistics.
Sources & references
44 datasets cited across this report · attribution is report-level