Recent data shows that lenders are becoming stricter with their eligibility criteria, making it hard to obtain a mortgage loan through conventional means. Cities like Miami and Tampa in the state of Florida are seeing elevated levels of loan refusals.
Last year, lenders rejected over 3,000 out of the more than 15,500 mortgage applications in Miami, resulting in a rejection rate of nearly 20 percent. These large numbers mean that Miami became one of the hardest areas in the country to receive a home loan. Additionally, lenders withdrew or denied approval for an additional 19 percent of mortgages. Ultimately, just over 60 percent of mortgage applications were successful.