Borrowers can put down anything on a piece of paper, and often times it takes the human touch to call BS. 

Pets (or humans) can always do more damage than that but the market in your area may not bear much more.

Also, another thing to consider is an appraiser is human, sometimes they can't really justify a big jump in value in a short amount of time, regardless what the house is, in their mind, they might subliminally ding you a bit, because it just appraised much lower, and especially after 2007-09, appraisers have their back to watch, appraisers were going crazy at that time doing exactly this, so sometimes it pays to wait a little while just for that reason as well.

You are right, I must never loose sight of the humanism that goes into our relationships.

I humanize the applications with pictures of the Tenant Buyers stapled to the applications. 

My parents immigrated to the US from Guinea, West Africa before I was born.

If the business entity taking out the loan is properly set up (no humans anywhere in the ownership chain), the acquiring entity's credit alone may be enough to put the deal together if the entity has a strong enough credit profile and financial statement, and sufficient cash is available to balance the lender's maximum LTV against the purchase price.Just a starting point ...

IE homes went from 500k on average to 1 mil. ( talking SF peninsula and prime LA) there were many human interest pieces in the sunday papers ( remember those you used to have them delivered to your door and then read them )... about people doing just that cashing in and moving to some little town In Iowa or Ohio or some other very inexpensive place to live and raising their kiddo's etc etc.I would think our average dual income family ( that's average earners) probably make 100 to 120k a hear combined... my 36 YO has a salary over 200k at intel plus her hubby... and they live nice but not over the top.. if she could telecommute to some other mid west area that would probably be a nice living and lifestyle.. but its still work .. but their is work in all we do whether its rentals or going to work. 

I am a Marine Corps veteran who was in the  administrative field and I am currently working as a Human Resource Specialist with a government agency in the DFW area.  

And in those neighborhoods, you may be the first tear down, never a great position to be in if resale is part of the plan, I do some work with Habitat for Humanity and we have been able to get some lots for under $200,000 but these are not lots that would support a new luxury build.