One of the most common reasons a borrower might be turned down for a subprime loan is due to?

A borrower may often be turned down for a subprime loan due to an unstable employment history because lenders evaluate the consistency and reliability of a borrower's income when assessing loan eligibility. A stable employment history indicates that a borrower has a reliable source of income, which is essential for loan repayment. If a borrower has frequently changed jobs or has gaps in employment, it raises concerns for lenders about their ability to maintain ongoing payments. This instability can lead to the perception of higher risk, making lenders hesitant to approve the loan, particularly in the subprime market, which is already associated with higher risk due to the creditworthiness of the borrowers.

In contrast, ownership of multiple properties might not disqualify a borrower, especially if they can demonstrate sufficient income or equity to support the loans. A high credit score would typically favor a borrower and increase their chances of obtaining favorable loan terms, rather than being a reason for denial. Low documented income could certainly affect loan approval, but in the context of subprime loans, the focus is more on the stability and reliability of that income, making unstable employment history a more significant factor.