Every year, thousands of home purchase applications get denied. Government filings show exactly why, county by county, for loans that closed or were decided in 2024.
What these numbers cover
This data comes from the CFPB’s Home Mortgage Disclosure Act filings for 2024: first-lien conventional applications for a home purchase, counted only where the outcome was originated, approved but not accepted, or denied. Refinances, FHA, VA, USDA loans, and second liens are not included. The denial rate is the share of those applications that ended in denial. When a lender denies an application, it can list up to four reasons, but this data counts only the first reason listed, so it understates how often a reason like insufficient cash shows up as a secondary factor.
California statewide
In 2024, California had 232,451 qualifying applications and 25,409 denials, a 10.9% denial rate. The three most common first reasons listed were debt-to-income ratio (37.3% of denials), collateral (17.4%), and credit history (12.7%). Among the state’s largest counties, Los Angeles had a 12.0% denial rate, San Diego 12.0%, and Riverside 13.7%, each with debt-to-income ratio as the top reason.
Texas and Florida compared
Texas and Florida both had higher overall denial rates than California in 2024, but for different top reasons.
| State | Denial rate | Top reason | Share of denials |
|---|---|---|---|
| Texas | 21.3% | Credit history | 35.4% |
| Florida | 17.2% | Debt-to-income ratio | 36.9% |
Texas’s second most common reason was debt-to-income ratio, at 32.7% of denials. Florida’s second most common reason was collateral, at 19.3%, well above Texas’s collateral share of 5.7%.
The number that stands out: debt-to-income buckets
HMDA also reports each applicant’s debt-to-income ratio in bands, and the denial rate by band tells a clearer story than the reason codes alone. In California, applicants with a reported debt-to-income ratio under 50% were denied between 5.4% and 6.9% of the time, depending on the band. Applicants in the 50% or higher band were denied 76.6% of the time. Texas and Florida show the same pattern: denial rates in the 50%-plus band of 86.6% and 86.2%, versus 10.7% to 15.4% in the lower bands. These are HMDA’s own reported ratios, self-reported by lenders and sometimes recorded as a range rather than an exact number, so treat the band as a general signal, not a precise cutoff.
What to do about each reason
These are general starting points, paraphrased from CFPB consumer guidance, not advice about your specific application.
- Debt-to-income ratio: This compares your monthly debt payments to your gross monthly income. CFPB explains how it is calculated and why many lenders look for it at or below 43%.
- Credit history: If a denial is based on your credit report, the lender must give you the credit score used and the reporting company’s contact information, and you can get a free copy of that report.
- Collateral: This reason often relates to the home’s appraised value. CFPB’s guidance on appraisals explains what they cover and your right to a copy.
- Insufficient cash to close: This is the total amount due at closing beyond what you have already paid. CFPB’s Closing Disclosure explainer breaks down where that figure comes from.
- Unverifiable information: A lender could not confirm something on the application, such as income or employment. Ask the lender in writing what could not be verified, and how to resubmit it.
What this means for you
None of this predicts what will happen with your own application. These are historical patterns across hundreds of thousands of 2024 applications, not a statement about any individual reader, and not a claim that any lender caused a denial. If you want to see how your own county compares, visit rates and county data and select your county. To check how a debt-to-income ratio or loan amount changes your own numbers, try the mortgage payment calculator.