Depending on the conviction, we would also possibly decline the application.So the question is how do we proceed with this tenant?

Bought a house with VA loan in hometown (Ellwood City), market in the area continued to decline due to areas nearby stealing the life out of it IMO (Chippewa Township for example).Due to various factors, made decision to pay down heavily the last year, got out from underwater, and recently sold it on 4/22 and walked away with a small amount of proceeds.I know that with an FHA loan, if you eventually convert it to a conventional loan, you can reapply for another FHA loan.  

I prefer to be buying when unemployment is high and improving, rather than low and approaching where it historically starts reverting upward again (and prices flatten or decline..)..

And many of them are total scams that never do any of those things for you and just charge you to pay your bills for you.Prices are softening in the DFW area, and with interest rates set to rise I think prices will continue to bump along or maybe even decline in some areas. 

A declining market area and it will be hard to find either a bank or partner.

Sure it would suck for the value to decline, but not nearly as much as a decline when with negative cash flow.

I have concerns that the market may be peaking and reaching a point where values will begin to decline. 

Even if you're accredited, they still may not be suitable.In the recession, all property declined in value across the board.  

Economic Slump: Although property values usually rise over time, they can decline because of an economic downturn.

I wouldn't even bother asking you for paystubs, because we aren't going to consider what you claim you make ($1.2/month), nor are we going to consider your stated YTD earnings (unless it indicates declining income).Ballpark, so as not to bore you with too much minutiae: We're going to look at what you told the IRS you made when you filed your taxes, and do a 2 year average (1 yr if most recent year shows declining income).