This is correct, but that .5% is IN ADDITION to all the other closing costs associated with a refinance (Title/Escrow Fees, prepaids, and depending on the bank, Underwriting / processor costs) - so in reality it can be a little more expensive to refinance with IRRRLs.

So unless im prepared to lawyer up 3k just to try and get some of it back the answer "just walk away from your deposits, im trustworthy" doesnt work for me.I have prepaid for work from big names, Lowes installs etc.

Secondly, if you do offer these services at your property, do you use your business account, debit, or credit card to pay for the memberships?

Also remember 3.5% is your down payment, but you will also have closing costs and prepaids which might add to that number.#5. 

Stop using a debit card , use a credit card and pay it off in full every month .

Could you send them a credit/debit card you can reload from America?

Financing provided through this program is only available for properties located in Michigan or Florida.Available Product Type: SOFR 7/6 ARM, SOFR 10/6 ARMLoan Amount: $766,550 MaximumLTV: Purchase and No Cash Out Refinance - Maximum 99%Prepayment Penalty: NoneLoan Assumption: NoneEligible Properties: 1-unit dwellings, attached and detached condominiums, PUDsEscrow: An escrow account must be established for property taxes, and flood insurance, if requiredUnderwritingNo Private Mortgage InsuranceOccupancy – Primary residencesMinimum Credit Score - 700DTI – Max 43% (UW/Mgmt exceptions up to 50% with minimum 3 documented compensating factors)Student Loans – If in deferment, no qualifying payment requiredDown payment of 1% must be borrower’s own funds, while closing costs and prepaids may be gift fundsAttached condominiums require a 10% down paymentEligible Borrowers – Protect and serve heroes are defined as employees of public or private education institutions, employees of medical and healthcare organizations, all first responders, and active or former military personnel.Servicing: Retained

The closing attorney or title co will draw up the closing statement so each party will know exactly what their costs, credits or debits will be in closing the transaction.  

Interest rate on both vehicles would have to be {near} identical or the amortized, fixed rate note would need to be at a higher rate than the LoC.In my above post I mentioned the "borrowed lump-sum" approach being necessary if the terms of your mortgage note were such that it could only be prepaid on its anniversary {don't know if such notes still exist}.  

Also unless they have stacks of cash they will need to use credit cards or debit cards to buy stuff.