Why is this buyer not qualifying for a loan?

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Hello...I'm looking to see if anyone can explain this to me.Mark just had his first home put on a lease-to-own contract with a family because they don't currently meet creditworthiness for a loan. The lease is for 12 months at which point they will be reviewed. 10 of the 12 months will go toward a down payment on that lease. His monther is a non-occupying co-signer on an FHA loan for this home because of his mid-level income. He makes mid-thirties per year, and his credit score is high 700's, although there is other income in the form of investments. His mother makes closer to sixty-k/yr and has a credit score in the mid-800's.IN the meantime, he is trying to buy a home at $221k. Another FHA loan was drawn up in the same manner as the first home (mother as non-occupying co-signer). Everything was fine until the broker tried to re-fi the 1st loan to a conventional. It seems that different brokers have unsuccessfully tried this situation and failed.I understand his income is not that high....but he's got excellent credit, pays his bills, his first home is essentially being paid for thru the rentors/lessors until they can buy it. He will have an additional mid-fifties in income coming into the house, but the person who's income that is does not have good credit and will not be on the loan.He's been told everything from andquot;We can't do itandquot; to andquot;You HAVE to have 20% down to get a loan.andquot; He can get 5-10%, but not 20% of $221k!Can someone tell me why someone who does pay their bills, has excellent employment and credit history, and does actually have means to pay for this not be able to get a loan?Thank you for reading this novel.Thank you.


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(Source: mortgagefit.com)