A land contract is a quite unique vehicle, so I am not sure if the lender is technically even looking at it as a re-fi or as a purchase loan.

We do a full background check on all applicants--is there anything you'd like to discuss with me?

Likewise, if they make it impossible to check major background info like evictions, many landlords will again take the next best choice - go to higher priced units, so the tenants will be worth chasing if things go bad.

Some background...

Unless you can accurately estimate rehab costs/have a construction background, I would say to have a GC or two ahead of time.

Technically speaking, any lease over 3 years in length or any option agreements are a violation of the due on sale clause in FHA (and other loan types as well) loans. 

Fills out the app and pays for the credit/background check...credit 583, with a few arrests for illegal substances.  

She qualifies on her own, but I’m worried that this separation may be a ruse because her husband may not meet the rental requirements (prior evictions/criminal background, etc) Perhaps it was just a slip of the tongue, but she referred to him as her husband several times during our conversation and it’s odd to me that they’d show up together if they are separating. 

It doesn't technically have to be the deal operators money, but the aggregate equity of the partners will have to meet minimum guidelines for the senior debt.

As it is not technically a " sale of a property" (or is this still considered a sale?)