EMD with wholesaler and HML in the mix?

[Gary Dezoysa]

I am buying a house for $170k in Texas. The wholesaler put down $1k EMD. The HML says they can 100% bridge finance the purchase price because I'm buying it deep enough (280k ARV). I will pay closing costs. The wholesaler told me he wants $5,000 EMD.

1. Should I negotiate EMD? 5k feels high for a 170k house. I'd rather put down $1,700 in case of some issue requiring a refund.

2. Will the EMD amount I put down encourage the lender to put down less than 100%? 5k will probably be more than closing costs

3. If the answer to #2 is no, I guess the excess EMD comes back to me during closing disbursements?

4. I hear some states are "mutual release" (requires both parties to accept EMD release) does anyone know the case with Texas?