8 Reasons Underwriters deny Conventional Loans in Kansas City Getting rejected hurts emotionally and mentally, especially when you’re applying for a conventional loan. You may be wondering why this happens and how often this type of loan gets denied by underwriters. According to mortgage industry data, roughly 8% of conventional mortgage applications get denied on an annual basis. However, in most cases, there are 8 valid reasons why a conventional loan gets denied: • the appraisal value of your home is lower than the selling price • there were problems listed in the home inspection report • you have a history of missed mortgage payments • you have unusual bank account activity • your credit score is below 620 • your debt-to-income (DTI) ratio exceeds 45% • your employment status has changed and you don’t have at least 2 years of income at the same job • your loan-to-value (LTV) ratio exceeds 80% If your conventional loan application gets denied, there are a few things you can do. This includes improving your borrowing position by checking for errors on your credit report, paying down your debt to lower your DTI, and saving more money for a larger down payment if your LTV is too high. https://www.google.com/maps?cid=11762440658982302319