Top 3 reasons why Kentucky mortgage applications are denied 1. Debt-to-income ratio too high. This ratio is a simple measure of how much debt you carry expressed as a percentage of the amount of money you earn before taxes and deductions each month. Most mortgage lenders are looking for a debt-to-income ratio that doesn’t exceed 45 to 50%, and that includes the mortgage payment you are applying to take on. 2. Credit score too low. Credit scores, which are measured slightly differently across three major reporting agencies, range from 300 to 850 and are considered to be an at-a-glance measure of the trustworthiness of individual borrowers. In general, credit scores below 620 are typically considered subprime and may make it more challenging to get a mortgage.While Fannie Mae and Freddie Mac each require a minimum credit score of 620, the FHA has more forgiving parameters, making FHA loans a better bet if you are in credit-repairing mode FHA loans were created in the 1930s to make homeownership more widely accessible, and their guidelines stipulate that credit scores as low as 500 may be accepted with a 10% down payment. Credit scores of 580 or above, meanwhile, may be eligible with as little as 3.5% down. 3. Employment history not stable or long enough. If, after approaching a handful of lenders, you find that your employment history is a little too spotty, now may be the time to focus on remaining consistently employed for a year or two before applying for a mortgage.