Rent Credit Redemption

In the Rent Credit Agreement Frank and Dave supplied through the boot camp it specifies two ways to redeem rent credits.

1- Apply as a down payment or
2- Total Purchase Price

When applying as a down payment does that scenario describe a tenant getting financing from a bank and you literally writing them a check for some dollar amount equal to their credit accumulation? In that scenario the client receives funds(with help from your down payment) from the bank and pays you off .

If a tenant cannot get financed by a bank I suppose their only option to home ownership through RCP is to stay in the rent credit program until they have accumulated enough credit to apply towards total purchase price - correct?

Which raises the question - even if they are financeable through a bank - why would they want to go that route? Why not just pay the Rent Credit to the end? My guess is you’ve structured the RCP so they are incentive to get bank financing. in some way.

Thanks for any insight your can provide fellow investors!