As someone who has managed rental homes for many years I would recommend you opt for a 1 year lease and screen heavily on the front end (if you don't know how to screen with credit, criminal, etc use a free site for landlords like worryfreetenant.com ) You will also need to contact current landlord, verify income etc. 

But underwriters would ask about big deposits , to make sure is non-criminal activities they required a letter stating is a gift and not a loan from such party.Regardless of the loan product, and using your explanation as an example would this be the outlook: Title to include Person 1 (mortgage holder) + LLC (93% Person 1 + 7% Person 2)

I prefer the total package with criminal history included.

We run a full credit, criminal and eviction history background check.

Criminals are creative.

I'm considering filing a police report for criminal check fraud and have their new address, employment, etc..

I am sure his thoughts were when he became an officer was arresting dangerous criminals, taking down drug dealers, etc., not throwing a sick disabled person out on the street.

The tenants pay them directly during the application process and we get a criminal background check and credit check. 

There are attorneys that focus on small court proceedings and not just large criminal cases. 

Also, on background, you'd want to make sure that your area allows judgment calls based on their criminal background.