I have found that sometimes tenants are not trying to be jerks but their circumstances..... and sometimes when I have tried to play "the big company who owns the property" they aren't able to see the issues they cause me or my company.

@Damian Chavero the name of the game is to put as little as possible in all circumstances.

Give him a written notice that it's unacceptable behavior, particularly when you have women and children in the area, and that another instance will result in termination.

Insurance is usually not the one who pays, but could be in some circumstances.

Any ideas on how to help him find a lender that would handle this type of unusual circumstance?

I highly doubt that you could have filed a lis pendance lawsuit over the circumstances of you backing out at no fault of the seller..

I can tell you that loan programs do not consider loan proceeds as income, they are considered assets and are eligible to be used as a down payment under certain circumstances. 

If your a millionaire they are great to work with.I think they are over priced and they make big money decisions and try and talk you into it.Most classy women can make those decisions for you for a mere compliment or a nice dinner.

Good luck for her to find a landlord who would respond better in similar circumstances.

I know one lender who will do land for up to 3 years and also can convert to a construction loan under the right circumstances.