I actually target small college towns for multifamily because of rental history and economic stability.

For example, we discriminate against people who don't have sufficient income, people who smoke, people who have a bad legal history, people who have poor credit history, people who have stiffed other landlords or destroyed their property, and people who lie on their applications or don't even turn in an application. 

They had crappy credit, crappy jobs and crappy history, but insisted that all would be well because they are Christians and they would NEVER go back on their word, etc, etc, etc.  

@Dwayne Poster Where on a standard purchase agreement does it ask the potential buyer to disclose their criminal history?

You don't have the history like the NEST though.

If they cash out refi'd they could access hundreds of thousands of equity and have about the same mortgage payment at a much lower interest rate.Is there a family history of helping the generations? 

Employment history has been verified and they have been with the current landlord for 5 years and he gives them a recommendation letter.

You can find a ton of information about a person from some on-line services, like doing a North Carolina Department Of Public Safety Offender Public Information search using just a name and birthdate.Again, personally, I don't want to deal with people where NCDOC identifies as "Primary Crime: HABITUAL FELON (PRINCIPAL)" as in a 29 year old with 8 pages of criminal history with "total Incarceration Term: 15 YEARS 3 MONTHS 15 DAYS" … think about that for a few seconds... 

I strongly suggest checking employment history.

If my parents took on one of these roles, I would like to avoid any risk to them and their credit score, while still being able to use their history of a stable income to acquire this loan.Which role can provide income history, while not having their credit score impacted?