Buyers in Miami, Florida are turned down for mortgage finance 24.48% of the time – the most amongst major US cities, research from online lending marketplace LendingTree has revealed.
The leading reason for people being denied finance in Miami is the debt-to-income ratio, which accounts for a third (32%) of mortgage rejections.
There was also a high rejection rate in the Texan cities of Houston (23.72%) and San Antonio (23.08%).
The city with the highest approval rate was Salt Lake City in Utah, where buyers are granted a mortgage 89.21% of the time.
Portland, Oregon has the second best approval rate of (88.48%), followed by St Louis in Missouri (88.41%).
Amongst all the US cities the top four reasons for denial were debt-to-income ratio, credit history, incomplete credit application and collateral.
While mortgage rates have gradually increased since February, they are still more than 30 basis points lower than they were in March 2020.