In 2024, 25.6% of refinance applications were denied, up from 9.5% in October 2023. With economic shifts, tariffs, and job market changes, securing a mortgage refinance is tougher. Here are five reasons why you might have been denied and what to do next.
You can reapply immediately, but each application triggers a hard credit check, which may lower your score. Instead, wait and boost your credit by paying bills on time and make extra mortgage payments to build equity.
If you have an FHA loan, try an FHA Streamline Refinance, which skips appraisals and income checks. VA loan holders can explore a VA IRRRL for simpler requirements (CNBC Select).
Need cash? A HELOC lets you borrow against 20% or more home equity with lower rates than personal loans. But you have to be cautious, HELOCs often come with serious downsides—read our guide on 5 Reasons a HELOC Is Dangerous and 3 Alternatives .
Renting spare rooms can generate income to pay down debt or boost your credit. Use platforms like Airbnb or local listings to find tenants, ensuring compliance with local laws (CNBC Select).
A sale-leaseback lets you sell your home, cash out equity to pay debts, and stay as a renter, cutting homeownership costs. This trend, inspired by commercial leasebacks, is gaining traction in 2025 (Forbes Advisor).
You sell your house, cash out on the home equity, pay off debts and build your life back with money in the bank. This means no longer incurring in all the homeownership costs and the stability of having cash to pay and to invest. Check our our sell and stay program here: