Lease option real estate

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Hi @Alvonta Flemings and welcome to BiggerPockets!

My best advice is to send all tenant/buyers (T/Bs) to your favorite mortgage broker for loan qualification as part of your approval process. I'm assuming here that you're already doing the standard tenant screening (verification of rent, verification of income, criminal check, etc).

You already know that they won't qualify for a loan right now, but you want to know WHY: Is it slow credit, no credit, or just straight-up non-payment? Or, it might not be credit at all, but rather an income issue or past BK.

Whatever the challenge, let your mortgage broker help identify the exact game-plan for getting this T/B to qualify for a loan and also the time-frame for getting it done.

Then, you get to decide if the game-plan and time-frame both work for your business model. If so, then they're officially qualified and approved; otherwise, not so much.