My realtor was insistent that we get that in writing from the seller, but they pushed back because the deposit was only $200 and they didn't expect the tenants to make a fuss.

While I could have attempted to enforce my lease agreement with her and insist she pay, I know I would ultimately have had to take her to small claims court if she refused and the juice wasn't worth the squeeze to me.

I gave them a whole list of potential negotiation scenarios, including dropping the rent a little, cutting the move-in fee (I honestly hate move-in fees but they insist).

Also from your responses above it sounds like you are the one that insisted it be at medium to higher market price even thought the place is not in as nice of condition as the competition and that you only just lowered the price.

This is not my job to find errors in lenders' posts but since this lender insists on being wrong, let's use the actual guidance, shall we? 

I'm not a Realtor (any longer) and take this for what it's worth...but every time I've decided, as a seller, to reject a potential buyers offer as being too low, or insulting, or what ever re terms, my Realtor has always insisted that we sign a 'offer rejected ' just to make it legal, they would say.

Still insist on renter's insurance from tenants.

If he insists on getting some sort of deposit, then you can pay it from the bigger option fee you receive from the TB.

The housing authority insist the HUD limits prevent them from paying my requested rent or even increasing it at all, while the other authority had no issue entering into a contract for the requested amount.

So far banks are insisting that I sign personally.