The tax assessment value of her house now is about 86k.Now here lies the problem,  being a single mother throughout the 90's and racking up school loans and credit card debt, she doesn't have the greatest credit score and has been denied a refinance in the past.. which is what would be the best scenario right?

Since you both are in Texas can you confirm or deny this? 

Lastly, why do you feel compelled to "deny them"?

Then denied Section 8 because there was older "cement paint" on the driveway that had partially been stripped away.

It was denied because of a Fannie Mae guideline that the bank follows which does not allow for an owner to own more than 10% of the total units. 2 out of 12 violated this threshhold. 

At times, the underwriter will give a response denying something and providing an alternative to supplement or compliment an item in order for the idea to be satisfied.  

Try to give applicable information in the question, if it's about a loan we need certain types of info, not a big deal as we can ask, but if you were denied a conventional loan you might give some details as that determines which way to advise.

My husband Denis and I just recently attended a 3 day seminar and they opened the doors to a whole new way of approaching and making deals in real estate that we had no idea about, besides the conventional bank loans.My husband has been in construction for about 13 yrs and I have been a stay at home mom for 2 years now.

As to getting the longest term possible, I'd say your chances of of an offer with any 65 year old seller/landlord that includes a 30 year fixed rate would be pretty great in getting that offer denied if not laughed at.

The plan would be to rent it 12 months later (due to some future plans, we'll most likely only be in GA for a year)VA loan was denied due to a deliquent account being reported.