Im really new to the landlording game, and im trying to get clear information on how to properly and legally deny a tenant application.

The issue is i don't know who is holding escrow all I know is she is looking for a condo because the sale is closing soon.it is a cash buyer who contacted me to set up an appointment  the buyer denied access because they felt ill, the buyer decided to knock on the door anyways and thats when things began between them.

Tried to get traditional financing for the house but got denied due to not having any income.

Could you confirm/deny my understanding of these rules?  

The loan officer challenger the appraisal with local comps she herself looked up and they still denied the comps.

I regret not pursuing further an appeal they denied for me.

What happened during the last market correction, a lot of people were relying on these HELOCs to fund rehab projects, and banks closed the HELOC (or denied the annual renewal) while people were in mid-rehab. 

Your desire for the house of your dreams is not a significant enough change of circumstances to get two FHA or Fannie Mae backed loans in the same year and an underwriter will deny the loan. 

If you have two applicants with scores of 700+ and a third with 550 then you could deny their application because of the person with 550.When I rent to three or  more unrelated people, I require each of them to have a credit score of 650 and make at least 2x the rent for a combined total of 6x the rent.

If I partner up and go down on the loan will we be denied because of my insufficient (W2) income and short amount of credit history?