YOU are the one who is entitled to the security deposit, as YOU are the one who will have to pay for any damages.

This was super surprising to me, since the loan is way more "secure" for the lender AFAIK.

Either process could work, but if he is securing his interest with a lien on the property you are purchasing, then he should most likely send the money directly to the title company (and have you sign a note and mortgage or deed of trust). 

I cant imagine they dont have clients that use a rotating line, whether personal or secured by real estate, for a reserve.

However, I now have a Duplex under contract in Birmingham and did the final inspection last week and I was looking to secure funding, then my current lender told me that they don't service the State of Alabama. :/ Does anyone know any smaller local or bigger banks that would offer the same type of loans?

A little less than two weeks ago I secured my first deal and it was a BIG one. 

If your area is sketchy, maybe think of adding a home depot decorative metal security door to both front & back for single moms.

The maintainers are given a monthly per-diem rate and are required to secure their food and living arrangements from this pay.

@Jennifer KobasicIf all the details are factual you provided I may consider it *** if she was willing to put down a double security deposit amount

just keep knocking on doors and making phone calls, I finally got a good deal to sink my hooks in to and have your same issue, in the middle of a refi-cash out to buy this other property and the bank is throwing a wrench on the deal by asking me to pay off a car note to make the 51%DTI ratio. this bums me out but will keep pushing on until I get financing secured to nab this other property, maybe hard money to buy/fix and rent ( I am trying to avoid doing this), or maybe 203K loan, there are too many options, you need to exhaust all possibilities until you get one that fits. good luck brother.