Mortgage lender · Worthington, MN · LEI 254900QE8DMX9C02HU80

First State Bank Southwest review: approval odds, rates and grade (2025)

First State Bank Southwest earns an A, placing it in the top fifth of small mortgage lenders. It turned down 0.8% of the applications it decided on in 2025, which ranks in the 95th percentile for approval odds. Compared against 1,883 small mortgage lenders using 2025 HMDA filings.

135Applications2025
92.6%Originatedof applications
0.8%Decision denial ratenational 22.6%
Median ratenational 6.63%
$27MLoan volume4 states

First State Bank Southwest at a glance, 2025

Every figure is from the lender's own HMDA filing. "vs national" compares with all lenders combined.

0.7%Denial rate (all applications)-17.24 pts vs national
0.8%Denial rate (decided applications)-21.81 pts vs national
92.6%Origination rate+34.56 pts vs national
4.4%Withdrawn by applicant
0.0%Closed for incompleteness
Median interest rate
Median rate spread (pts over APOR)
$205,000Median loan amount
Median total loan costs
$98kMedian applicant income
Median loan-to-value
0High-cost (HOEPA) loans

How the A grade breaks down

Each component is a percentile rank among 1,883 small mortgage lenders. Higher is better. Components the lender does not report are left out and the weights redistributed.

Approval oddsdecision denial rate, weight 45%

95th0.8% denied

Processwithdrawn + incomplete share, weight 15%

81st4.4%

Trend, 2023–2025

YearApplicationsOriginatedDenial rateDecision denialMedian rateVolume
20231351242.2%2.3%$19M
20241371293.7%3.7%$27M
20251351250.7%0.8%$27M

What First State Bank Southwest lends

Applications by purpose and loan type in 2025, with the denial rate for each. A lender's mix explains a lot of its headline rate: HELOCs and FHA loans are denied far more often than conventional purchase loans.

By loan purpose

Home purchase 106 79% · 0.9% denied
Refinance 14 10% · 0.0% denied
Cash-out refinance 7 5% · 0.0% denied
Home improvement 6 4% · 0.0% denied
Other / HELOC 2 1% · 0.0% denied

By loan type

Conventional 129 96% · 0.8% denied
USDA / RHS 6 4% · 0.0% denied

Also: 0 home-equity lines, 0 reverse mortgages, 1 manufactured homes, 26 investment properties.

Who gets approved at First State Bank Southwest

Decision denial rate by applicant profile. Groups with fewer than 20 applications are omitted.

Applicant incomeApplicationsOriginatedDecision denial rate
$50k – $100k56521.9%
$100k – $150k34300.0%
Applicant ageApplicationsOriginatedDecision denial rate
Under 2523220.0%
25–3429260.0%
35–4437340.0%

Where First State Bank Southwest lends

4 states and 18 counties in 2025. Click a state for the lender's full record there.

StateApplicationsOriginatedDenial rateMedian rateRank in state
Minnesota102961.0%#205
South Dakota22180.0%#101
Iowa880.0%#377

Frequently asked questions

First State Bank Southwest denied 0.8% of the applications it decided on in 2025. The national figure across all lenders was 22.6%. On approval odds it ranks in the 95th percentile of small mortgage lenders.

In 2025, 79% of its applications were for home purchases, 16% for refinancing (including cash-out), and 6% for home improvement or other purposes. By loan type: 96% conventional, 0% FHA, 0% VA.

Every figure on this page comes from the Home Mortgage Disclosure Act (HMDA) Loan/Application Register published by the CFPB, which lenders are required by federal law to file. We add the grade and the comparisons; we do not add facts.

About this data. HMDA data is published once a year by the CFPB. The current release covers applications acted on in calendar year 2025. Figures describe applications the lender acted on, including loans it later sold. Interest rates and costs are medians on originated loans only; some depository institutions are exempt from reporting pricing fields, which is why a few cells read "—". MortgageGrades is not affiliated with First State Bank Southwest. Data sources · Methodology