Mortgage approval rates by state and loan type
The short version
In 2025, U.S. lenders originated 6,807,732 home loans and denied 2,081,146 applications — an approval rate of about 76.6% among decisioned applications, on roughly $2.40 trillion in lending. Odds are highest for VA loans (83%) and vary widely by state, from ND (85.9%) down to MS (69.8%).
- National approval rate: 76.6% (8,888,878 decisioned applications in 2025).
- By program: VA 83%, USDA 86.9%, FHA 77.4%, conventional 75.8%.
- Highest-approval states: ND, NE and IA.
- Lowest-approval states: MS, LA and FL.
Approval rates by loan type
Program matters more than most borrowers realize. Government-backed loans carry a federal guarantee that lowers lender risk, so they clear at higher rates than conventional financing.
| Loan type | Originated | Denied | Approval rate |
|---|---|---|---|
| Conventional | 5,308,741 | 1,698,369 | 75.8% |
| FHA | 900,434 | 262,613 | 77.4% |
| VA | 560,693 | 114,472 | 83% |
| USDA | 37,864 | 5,692 | 86.9% |
Source: HMDA 2025, FFIEC/CFPB. Approval rate = originated ÷ (originated + denied).
Approval rates by state, ranked
State approval rates reflect the local mix of borrowers, incomes, home prices and loan programs — not a lender bias by geography. Still, the spread is real: about 16.1 points separate ND from MS. Click any state for local rates and costs.
| Rank | State | Approval rate | Originated | Denied |
|---|---|---|---|---|
| 1 | ND | 85.9% | 14,333 | 2,353 |
| 2 | NE | 84.3% | 43,920 | 8,182 |
| 3 | IA | 84.2% | 75,933 | 14,267 |
| 4 | SD | 83.8% | 17,111 | 3,303 |
| 5 | MN | 83% | 122,789 | 25,153 |
| 6 | WI | 82.9% | 154,669 | 31,807 |
| 7 | VT | 81.4% | 13,418 | 3,065 |
| 8 | ID | 81.3% | 56,607 | 12,983 |
| 9 | AK | 81.2% | 11,907 | 2,749 |
| 10 | KS | 80.9% | 60,511 | 14,250 |
| 11 | MT | 80.7% | 23,001 | 5,498 |
| 12 | MO | 80.6% | 146,780 | 35,291 |
| 13 | UT | 79.9% | 95,957 | 24,210 |
| 14 | OR | 79.8% | 89,385 | 22,568 |
| 15 | WY | 79.7% | 13,328 | 3,399 |
| 16 | WA | 79.6% | 175,441 | 44,965 |
| 17 | MA | 79.4% | 135,614 | 35,105 |
| 18 | CO | 79.3% | 156,418 | 40,730 |
| 19 | ME | 79.2% | 35,498 | 9,326 |
| 20 | IN | 79% | 178,349 | 47,461 |
| 21 | NH | 78.9% | 35,609 | 9,513 |
| 22 | VA | 78.9% | 203,054 | 54,385 |
| 23 | AZ | 78.6% | 183,878 | 50,167 |
| 24 | CT | 77.6% | 74,717 | 21,536 |
| 25 | IL | 77.4% | 232,591 | 67,804 |
| 26 | OH | 77.2% | 277,933 | 82,101 |
| 27 | TN | 77.2% | 176,247 | 52,016 |
| 28 | PA | 76.9% | 272,809 | 81,828 |
| 29 | NV | 76.8% | 69,682 | 21,068 |
| 30 | DE | 76.5% | 27,033 | 8,294 |
| 31 | MI | 76.4% | 229,505 | 70,986 |
| 32 | CA | 76.3% | 572,268 | 177,363 |
| 33 | NC | 76.2% | 281,159 | 87,837 |
| 34 | RI | 76.2% | 26,004 | 8,138 |
| 35 | NJ | 75.9% | 178,220 | 56,618 |
| 36 | AR | 75.8% | 66,490 | 21,278 |
| 37 | OK | 75.8% | 79,051 | 25,245 |
| 38 | SC | 75.6% | 143,083 | 46,264 |
| 39 | DC | 75.5% | 9,300 | 3,026 |
| 40 | KY | 75.5% | 100,653 | 32,628 |
| 41 | NY | 75.1% | 232,239 | 76,984 |
| 42 | MD | 74.8% | 126,664 | 42,745 |
| 43 | NM | 74.1% | 39,313 | 13,712 |
| 44 | GA | 73.8% | 242,931 | 86,323 |
| 45 | TX | 73.8% | 526,689 | 186,511 |
| 46 | AL | 73.6% | 115,118 | 41,252 |
| 47 | WV | 72.1% | 29,629 | 11,456 |
| 48 | HI | 71.7% | 19,858 | 7,829 |
| 49 | FL | 71.4% | 491,046 | 196,298 |
| 50 | LA | 70.1% | 69,272 | 29,558 |
| 51 | MS | 69.8% | 54,718 | 23,718 |
Source: HMDA 2025, FFIEC/CFPB, pulled 2026-07-10. Decisioned applications only.
What this means for your application
A state or program rate is a pattern, not a prediction. Approval turns on factors under your control — your credit score, debt-to-income ratio, down payment and the property itself. The clearest takeaway from the data is that loan program is a lever: if you're eligible for a VA or USDA loan, your odds — and usually your rate — are better than on a conventional loan.
Before you apply, check where you stand: estimate a payment in the mortgage calculator, see the price you can carry with the affordability calculator, and review complaint patterns in our mortgage complaints report.
Frequently asked
What is the average mortgage approval rate in the U.S.?
In 2025, lenders originated 6,807,732 home loans and denied 2,081,146 applications, an approval rate of about 76.6% among decisioned applications, according to federal HMDA data.
Approval odds vary by loan type and state — VA loans clear 83% while some states sit below 72%.
Why do VA and USDA loans have higher approval rates?
Government-backed VA and USDA loans carry a federal guarantee that reduces lender risk, and their borrowers are often carefully pre-screened for eligibility. In 2025, VA loans were approved at 83% and USDA at 86.9%, both above the 75.8% conventional rate.
Does a state approval rate predict my own odds?
No. Approval is decided on your credit, debt-to-income ratio, down payment and the property — not your ZIP code. State rates reflect the mix of borrowers, incomes, home prices and loan types in each market. They are useful for spotting patterns, not for predicting an individual decision.
What counts as a denial in this data?
HMDA records the action taken on each application. We compare loans originated (action 1) against applications denied (action 3) to compute an approval rate among decisioned applications. Withdrawn and incomplete files are excluded, so this measures how decisioned applications resolved.