We have a class B SFH unit with minimum credit score of 650 requirement. I received one application and need your advice.

Phone screen learned that applicant recently divorced with low score but good rental record and stable job with enough income of 3 times of rent. He applied and let me know that his grandpa would be co-signer. After reviewed the application and credit report, I learned that he had bankruptcy 9 years ago because of job laid off. During the phone screen, bankruptcy was not brought up. His score is 560. Credit report showed no collection. Only two credit cards. One has delinquency during time of divorce. Called previous landlord, he paid all rent timely and no damage records. Lived in current place for 5 years. He works in local medical university for 8 years now.

Co-signer owns house, lives on SS and a second low pay job.

Do you see high risk with previous bankruptcy and current low score?

Really high risk due to the divorce itself and the cosigner is not getting good income. Putting a lien on a house takes a long time to get paid. He may have to pay huge child support and have shared custody of a few kids who may create issues in your unit.

Thanks all for raising good questions and pointing to the right direction.

I called both previous and current landlords. The reference was good. Paid rent timely for 8 years. The main reason for moving is that ex-wife moved to our side of the town. He want to be close to kids.

I asked him about any other debts or child support. He has no bedts. Has 50/50 custody for kids, so no other child support payment to ex-wife. He only has low balance on cc.

Ask him to double the security deposit and you will sleep good at night.

Bankruptcy, low credit score, divorce, repossession - these are things in the past.

As long as he is not a felon, and with the present position and income, I would take him.

I will tell him to look into my eyes and repeat: I want to rebuild my life and credit, and I will never be late to pay rent.

how fast can you get deadbeats out? if it takes months- stay with your 650. Need to know the deposit.

Here it takes about 30 to 40 days. First I would say the co-signer isn't good for anything- fixed income so you can't garnish-- you can however use it as leverage is the guy tries to stiff you. He may not know you can't do anything to grandpa.

Our deposits run around 900.00-- i wouldn't make it impossible for him to come up with the xtra money if your considering him. Why consider him if you make it out of reach?

"You have answered your own question. You stated your minimum credit score is 650, but his score is only 560. That's quite a difference. "

Agree...what's the point of having written criteria if you're going to deviate from it? And that's a good way to get in trouble with fair housing, if that ever came to pass.

My history in a bad rental market.

If I accept someone slightly below my minimum standards, and they have a good reason why they have dings on their credit -- then after checking things out, I will accept them if I have no other qualified applicants.

I’d be good to go also! I don’t use score. I use what is on the report.

How do you get a score of 560 with no accounts in collection? I get applicants with a dozen accounts in collection who have scores mid 600. That bankruptcy was so long ago it shouldn't be much of a consideration.

The cosigner is worthless. He doesn't have money to pay if the tenant misses a payment. Except maybe tenant would be embarrassed if grandpa was notified of default, so is more motivated to pay? Not that that is worth much.

I pulled credit report from this site and the report is really short. Applicant only have two CC. His has low balance and several months of over 90 day delay. Bankruptcy is 9 years old. No collection and no other debts. According to him, the wife was a spender and he always hands out the check and had no idea that she didn't pay the CC. That was the main reason they divorced. I was also surprised that the score was so low.