Which of the following reasons is a common barrier to home ownership?

The correct answer highlights a crucial aspect of the home-buying process. A lack of funds for a down payment often serves as a significant barrier to homeownership for many individuals. This financial hurdle can prevent potential buyers from being able to secure a mortgage, as most lenders require a percentage of the home’s purchase price to be paid up front. Without sufficient savings or access to funds for this initial payment, individuals may be unable to enter the housing market, even if they might be otherwise qualified in terms of credit score or income.

In contrast, having significant assets and a strong credit score typically bolster one's ability to purchase a home rather than hinder it. These factors often indicate financial stability and reliability to lenders, making the mortgage approval process smoother. Similarly, a desire for stability is generally seen as a positive reason to pursue homeownership, as many people consider owning a home as a step toward achieving personal and financial stability. Therefore, while assets, strong credit, and a desire for stability contribute positively to the pursuit of homeownership, lacking sufficient funds for a down payment remains a predominant barrier individuals face.