Which of the following qualifies as an issue for borrowers seeking traditional financing?

The correct choice identifies a significant obstacle for borrowers seeking traditional financing. Lacking the necessary resources to qualify for conventional loans often encompasses various factors, including insufficient income documentation, a high debt-to-income ratio, or inadequate creditworthiness. Traditional financing typically has stringent requirements, necessitating a certain level of income stability, credit score, and debt management.

In many cases, borrowers who do not meet these financial criteria may find it challenging to secure a conventional mortgage. This situation can be particularly acute for individuals with limited credit history or those experiencing an unstable financial position, making it difficult to demonstrate their ability to make consistent mortgage payments.

On the other hand, the other options present attributes that usually enhance a borrower's eligibility for traditional financing. High credit scores suggest a responsible borrowing history, while having access to a 20% down payment demonstrates financial preparedness and reduces lender risk. Maintaining a stable employment history typically indicates reliable income, further assisting in meeting lender qualifications. These factors contribute to a stronger application for conventional financing rather than presenting issues.