I'm currently collecting rental applications for a SFH I have up for rent and an individual and her family are interested in renting my property. The wife checks out but her husband has a litany of criminal charges: h...

If the rent bounces/rejected, it'd be treated the same way as a bad check, and would then be late.If a tenant pays through cozy.co on the 8th, it is late  and we'd charge a fee, as we have a 7-day grace period.   

This means if he can not afford $400 the buyers are not performing and it is up to the sellers to keep the deposit ore reject the offer.My question is why you even bother with VA loan offer paying everything. 

A majority of those would probably be rejected by us for one reason or another, but it shows that the demand is there.There is currently one house for rent in a less desirable area, and it is falling apart.

However only a handful are following up after they are rejected the first time, and an even smaller amount are following up after they have been rejected a few times after that.

Lastly, this is just one deal so don't fall in love with it. you have a LOT of rejection ahead so pace yourself

They do give you advice about what to file based on what you listed, but you won't get a red flag or reject if you file something different. 

You rejected their offer when you countered it, and at that point they were under no obligation to honor the original offer. 

That doesn't mean that they ask applicants if they have kids which can be seen as discrimination and if they reject based on kids then you are opening yourself up for legal trouble.

Which I'm sure upset him and they were rejected.