@Tarold Davis1 (lining someone else's pockets) and 3 (non-refundable deposit, higher than average rents on a house you may or may not purchase) waste money and you don't own anything.Option 2 gets you want you want for your kids and doesn't tie up your money.

They are lucky to have saved First and Last months rent with the Deposits on Light, Water and Cable and still have a JOB, in order to move on to the next Apartment or House.

Students are really BRUTAL on properties so plan on using quite a large portion of the security deposit going towards repairs and expect the house to turn over to to new renters every 1-2 years. 

@Sean Cole  it so very different your seller is the Sherriff or trustee service in our case.. your buyer is someone who is bidding... and puts up a significant non refundable deposit.Or like in the case of Indiana its a felony to bid on a property and not follow through.. not only do you lose your bid deposit the Sherriff can have you arrested. 

Or do they expect some sort of earnest money deposit in the form of certified funds and then you have some time to bring the rest of the money?

I see a lot of problems with how landlords assess applications and decide on deposits that could cost them a ton of money down the road. 

its difficult to finance and maintain compliance with state law regarding use of deposits, etc.

She must give you a downpayment (more than a normal security deposit).

ok i know this is not the avenue for this post but i need some advice. hoping someone has some insight for me. so i found a home on the 22nd and paid my deposit and 1st month rent and signed the lease.the lease says that i can not be refunded for any money given in the even that i can not move in. the same night i signed the lease my mother died. she lives in seattle and i have no more money left. i told the guy that i cant move in as now i have to go to seattle and say goodbye to my mom etc. he text me and said he understood and that unfortunately he can only give me back my first months rent. i asked him if i found him a new renter to replace me would i get my deposit back he said that they would have to sign the lease and pay by march 1st.

She was supposed to move in the first time June 13, still had not paid the security deposit.