The City with the Highest Mortgage Denial Rate Is …

Apr 24, 2018

Prospective homebuyers in search of American Dream may have a tougher time purchasing a house below the Mason-Dixon Line, according to a new data analysis from LendingTree.

Although the national mortgage application denial rate is 8 percent, seven of the top 10 states for mortgage denials were in the South. Birmingham, Ala., led the country with a 13 percent denial rate, which was primarily blamed on credit history. New Orleans placed second with a 12 percent denial rate that was to problems with applicants’ credit history and debt-to-income, while Memphis came in third with a 12 percent denial rate pegged to credit history woes.

Rounding out the list of the 10 states with the highest denial rates are Oklahoma City, Miami, Orlando, Rhode Island’s capital city of Providence, Tampa, Houston, and Connecticut’s capital city of Hartford. At the other end of the spectrum, Minneapolis-St. Paul had the lowest mortgage denial rate at five percent.

“The current housing market is particularly competitive,” says LendingTree Chief Mortgage Economist Tendayi Kapfidze. “The key for homebuyers is being well-educated on the homebuying process, enabling them to be well-prepared when they enter the market. Understanding the key reasons mortgages are denied can help borrowers avoid missteps and compete effectively to secure their dream home.”

About the author

Phil Hall

Link copied

Published

Apr 24, 2018

Tech

AI Replaces Lending Handoffs At Credit Union

MidWest America FCU consolidates point of sale, origination and decisioning into a single AI-powered workflow

Credit unions have spent years digitizing the lending process. Increasingly, they're trying to eliminate the handoffs that slow it down.MidWest America Federal Credit Union has selected Algebrik AI's cloud-native lending platform, Algebrik One, to unify borrower point-of-sal...

C-Suite Strategies

Bed Bath & Beyond Says ROAD Act Supports Its Homeownership Platform Vision

Retailer continues expanding into mortgage, real estate and home services, arguing housing reform aligns with its long-term strategy

Bed Bath & Beyond is doubling down on its ambitions in housing finance, arguing that the 21st Century ROAD to Housing Act reinforces its strategy to build an integrated platform that extends well beyond home furnishings.In a position paper released Monday, Executive Chai...

Jul

Chandler, AZ

More from

Industry News

President Trump Cancels 21st Century ROAD To Housing Act

Trump cancels signing the bipartisan housing bill, leaving affordability package in limbo

Industry News

Jun 24, 2026

Commercial, Multifamily Mortgage Debt Tops $5 Trillion In Q1

MBA says outstanding debt grew by $26.3 billion in the first quarter, led by multifamily lending and increased holdings from banks, agencies, and life insurers

Industry News

Jun 18, 2026

Fed Holds Rates Steady, But Outlook Dims For Mortgage Rate Relief

The Federal Reserve left rates unchanged but updated projections show more policymakers expecting additional hikes

Industry News

Jun 18, 2026

Congress Nears Final Vote On 21st Century ROAD to Housing Act

Senate voted 87-8 to advance House-amended package, with final votes expected in coming days

Industry News

Jun 17, 2026

Florida Pending Sales Signal Strong Summer Housing Market

Closed sales rise for a ninth straight month as inventory gives buyers more negotiating power