We will receive the refundable portion of the deposits as well as any pre-paid rent.

Landlords would take large deposits or prepaid rent if there is no credit history due to being new here.

My other prospective tenant is willing to pay a double security deposit (prepaid rent) because his credit is week. 

sign a W9 and issue the 1099 to debit your end or your entity and they receive this as income and they file the income at their rate while you deduct it at your rate.

My name is Alicia few things about me:1- Wife and Mother of 2 small children2- Decent about of Debit - $15k credit card debt about 240k in mortgage debt between my house (3BR 2Bath) and our (1BR 1Bath Condo).

Loan fees, appraisal fee, lawyer fee, inspection, land survey, title survey, title lender policy, prepaid escrow item.

I would say no because 1) she doesn't report her income (not a good sign) and 2) if you feel a larger deposit or extra prepaid rent above what you would normally require, it would seem that you are already expecting her to be a liability - which usually, they will be. 

Also note if you do a VA IRRL (or any refi for that matter), there will still be closing costs and prepaid costs to process the refi. 

So, if borrower prepaid 6 months interest and payoff happens in less than 6 months borrower gets money back.2.

But I just got disclosure docs, rate is real, and lender pay all closing costs (other than prepaids, taxes etc).