Mortgage lender · Spicer, MN · LEI 549300KUIZTYQRC0R888

Heritage Bank review: approval odds, rates and grade (2025)

Heritage Bank earns a C, in line with the typical performance of small mortgage lenders. It turned down 11.9% of the applications it decided on in 2025, which ranks in the 41st percentile for approval odds. Compared against 1,883 small mortgage lenders using 2025 HMDA filings.

376Applications2025
61.7%Originatedof applications
11.9%Decision denial ratenational 22.6%
Median ratenational 6.63%
$91MLoan volume46 states

Heritage Bank at a glance, 2025

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

8.5%Denial rate (all applications)-9.47 pts vs national
11.9%Denial rate (decided applications)-10.74 pts vs national
61.7%Origination rate+3.67 pts vs national
28.2%Withdrawn by applicant
0.0%Closed for incompleteness
Median interest rate
Median rate spread (pts over APOR)
$330,000Median loan amount
Median total loan costs
$155kMedian applicant income
Median loan-to-value
0High-cost (HOEPA) loans

How the C 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%

41st11.9% denied

Processwithdrawn + incomplete share, weight 15%

7th28.2%

Trend, 2023–2025

YearApplicationsOriginatedDenial rateDecision denialMedian rateVolume
20235384106.5%7.8%6.25%$165M
20243202418.1%9.7%$71M
20253762328.5%11.9%$91M

What Heritage Bank 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 294 78% · 5.8% denied
Refinance 44 12% · 20.5% denied
Cash-out refinance 20 5% · 10.0% denied
Home improvement 8 2% · 25.0% denied
Other / HELOC 10 3% · 20.0% denied

By loan type

Conventional 309 82% · 7.1% denied
FHA 57 15% · 14.0% denied
VA 8 2% · 25.0% denied
USDA / RHS 2 1% · 0.0% denied

Also: 0 home-equity lines, 0 reverse mortgages, 2 manufactured homes, 9 investment properties.

Why Heritage Bank denies applications

Primary reason reported for each of the 32 denials in 2025. Lenders can cite up to four reasons; this is the first one listed.

Debt-to-income ratio 13 41%
Credit history 9 28%
Other 4 13%
Employment history 3 9%
Unverifiable information 2 6%
Collateral 1 3%

How these reasons compare nationally →

Who gets approved at Heritage Bank

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

Applicant incomeApplicationsOriginatedDecision denial rate
$50k – $100k976011.4%
$100k – $150k644214.3%
$150k – $250k82535.3%
Over $250k1146411.8%
Applicant ageApplicationsOriginatedDecision denial rate
Under 2523156.3%
25–341368413.1%
35–4492573.3%
45–54804816.7%
55–64311917.4%

Where Heritage Bank lends

46 states and 181 counties in 2025. Click a state for the lender's full record there.

StateApplicationsOriginatedDenial rateMedian rateRank in state
Minnesota128977.8%#178
Iowa39275.1%#245
Texas251212.0%#826
Florida1690.0%#807
South Dakota16106.3%#114
Arizona12616.7%#484
New York1169.1%#459
Georgia1050.0%#675
Pennsylvania840.0%#729
California7314.3%#772
Colorado710.0%#570
Nevada7328.6%#337
Indiana520.0%#646
North Carolina5320.0%#740
New Jersey530.0%#611
Ohio5120.0%#699
Oklahoma530.0%#494
Washington5420.0%#527

Frequently asked questions

Heritage Bank denied 11.9% of the applications it decided on in 2025. The national figure across all lenders was 22.6%. On approval odds it ranks in the 41st percentile of small mortgage lenders.

The most common reason Heritage Bank gave in 2025 was "debt-to-income ratio", cited on 40.6% of its denials. Lenders report up to four reasons per denial to the CFPB; the full breakdown is on this page.

In 2025, 78% of its applications were for home purchases, 17% for refinancing (including cash-out), and 5% for home improvement or other purposes. By loan type: 82% conventional, 15% FHA, 2% 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 Heritage Bank. Data sources · Methodology