A new mortgage data analysis identified several places in the U.S. where getting a mortgage approved can be hard work. While homeownership continues to be an American dream for many, those living in Miami and Tampa, Florida, in particular experience high levels of loan refusals.
Figures gathered and collated through the Home Mortgage Disclosure Act showed that 3,086 of the 15,887 mortgage applications made in Miami last year were rejected. This works out at a 19.4 percent rejection rate, making it the hardest metro area in the States to get a home loan. Also, a further 19 percent of mortgages were closed, withdrawn, or taken back shortly after their approval, meaning that just 61.6 percent of applications were truly successful. Tampa is in second place, with a 12.6 percent rejection rate.
One factor contributing towards this issue is that Florida is popular with both retirees and foreigners. Home values have therefore soared, causing many applicants in this state to try and buy a home above their affordability range. Zillow chief economist Svenja Gudell suggests that the 2009 housing crisis hit Miami hard, leaving many of the poorer minority groups struggling against foreclosures.
At the other end of the scale, one of the easiest places to get a mortgage is in the Twin Cities area in Minnesota, where there is only a 5 percent denial rate. "Minneapolis is a much cheaper market and applicants there don't try to buy expensive houses beyond their financial abilities," Gudell said.