Mortgage lender · Prairie Village, KS · LEI 5493008JUW0FLRMO0W64

M Squared Financial review: approval odds, rates and grade (2025)

M Squared Financial earns a B, better than most small mortgage lenders. It turned down 2.7% of the applications it decided on in 2025, which ranks in the 85th percentile for approval odds. Its median loan was priced 0.33 points above the average prime offer rate, ranking in the 43rd percentile on pricing. Compared against 1,883 small mortgage lenders using 2025 HMDA filings.

968Applications2025
78.1%Originatedof applications
2.7%Decision denial ratenational 22.6%
6.50%Median ratenational 6.63%
$224MLoan volume13 states

M Squared Financial at a glance, 2025

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

2.2%Denial rate (all applications)-15.81 pts vs national
2.7%Denial rate (decided applications)-19.91 pts vs national
78.1%Origination rate+20.07 pts vs national
19.0%Withdrawn by applicant
0.1%Closed for incompleteness
6.50%Median interest rate-0.13 pts vs national
0.33Median rate spread (pts over APOR)+0.07 pts vs national
$265,000Median loan amount
$4,725Median total loan costs
$98kMedian applicant income
93%Median loan-to-value
0High-cost (HOEPA) loans

How the B 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%

85th2.7% denied

Pricingmedian rate spread over APOR, weight 30%

43rd0.33 pts

Processwithdrawn + incomplete share, weight 15%

22nd19.1%

Closing coststotal loan costs ÷ loan amount, weight 10%

55th1.78% of loan

Trend, 2023–2025

YearApplicationsOriginatedDenial rateDecision denialMedian rateVolume
20232762760.0%0.0%5.88%$96M
20248766881.8%2.3%6.63%$207M
20259687562.2%2.7%6.50%$224M

What M Squared Financial 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 859 89% · 2.3% denied
Refinance 81 8% · 1.2% denied
Cash-out refinance 1 0% · 0.0% denied
Home improvement 27 3% · 0.0% denied

By loan type

Conventional 644 67% · 1.4% denied
FHA 244 25% · 3.7% denied
VA 75 8% · 4.0% denied
USDA / RHS 5 1% · 0.0% denied

Also: 0 home-equity lines, 0 reverse mortgages, 0 manufactured homes, 36 investment properties.

Why M Squared Financial denies applications

Primary reason reported for each of the 21 denials in 2025. Lenders can cite up to four reasons; this is the first one listed.

Collateral 11 52%
Insufficient cash 3 14%
Debt-to-income ratio 3 14%
Credit history 2 10%
Employment history 1 5%
Unverifiable information 1 5%

How these reasons compare nationally →

Who gets approved at M Squared Financial

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

Applicant incomeApplicationsOriginatedDecision denial rate
Under $50k86609.1%
$50k – $100k4073182.4%
$100k – $150k2381892.1%
$150k – $250k1671342.2%
Over $250k63490.0%
Applicant ageApplicationsOriginatedDecision denial rate
Under 2569594.8%
25–343742992.9%
35–442481911.5%
45–541371043.7%
55–6491701.4%
65–7436240.0%

Where M Squared Financial lends

13 states and 72 counties in 2025. Click a state for the lender's full record there.

StateApplicationsOriginatedDenial rateMedian rateRank in state
Missouri5304043.0%6.50%#86
Kansas3903211.0%6.63%#66
Texas25150.0%6.13%#827
Georgia7414.3%5.99%#727

Frequently asked questions

M Squared Financial denied 2.7% of the applications it decided on in 2025. The national figure across all lenders was 22.6%. On approval odds it ranks in the 85th percentile of small mortgage lenders.

The most common reason M Squared Financial gave in 2025 was "collateral", cited on 52.4% of its denials. Lenders report up to four reasons per denial to the CFPB; the full breakdown is on this page.

The median interest rate on loans M Squared Financial originated in 2025 was 6.50%, and its median rate spread over the average prime offer rate was 0.33 points. Rates on this page are what borrowers actually got, not advertised rates.

In 2025, 89% of its applications were for home purchases, 8% for refinancing (including cash-out), and 3% for home improvement or other purposes. By loan type: 67% conventional, 25% FHA, 8% 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 M Squared Financial. Data sources · Methodology