Keep in mind if they are behind you have a security deposit that you can draw from when the lease is up (but obviously don't mention this to them as it would probably piss them off).Let them know as kindly as you can that the rent isn't being forgiven but that the last thing you want is for them to have to worry about being evicted during all of this.

Finally she put down deposit(3k).

Definitely be transparent with the lender to save time and money as it can possibly be an 11th hour problem post inspections and when contingencies are lifted risking the cost of appraisal, inspection and your earnest money deposit.

I have a security deposit of $800 and I'm wondering if I can withhold for any of this.

Get your security deposit and sign.

This is the complete opposite of the so called "security deposit" that offers no security, to anyone.  

I am curious to know how people handle security deposits for a lease option.

This particular ARM is a portfolio loan with no PMI and a 5% deposit, which to me is just incredible.

The repayment terms for a 401k participant loan are equal monthly/quarterly payments of principal and interest (typically prime plus 1%) over a 5 year term (longer if used to acquire your principal residence).Please note that if you take a full $50,000 and then pay back the loan, you can't take another $50,000 until 12 months after the first loan was fully paid back.Per the loan offset rules that went into effect with the 2018 Tax and Job Act: if you leave your job and the loan is current at the time you leave your job but then the loan goes into default because you left your job, you will have until your tax return deadline (including any timely filed extension) to make the loan current by depositing the outstanding balance into an IRA (and thereby avoid the taxes and penalties that would otherwise apply).Please keep in mind the multiple loan rules:Under those rules, the sum of the balances of a participant's outstanding 401k loans under a single 401k plan (using the highest outstanding balance of each loan over the last 12 months) can't exceed 50% or $50,000 whichever is less.

@Ryan Johnston We held a corporate account with Wells Fargo for over a decade and never had an issue with depositing a check made out to the seller and endorsed as "Sam Seller by virtue of Power of Attorney and Attorney-In-Fact by Home Pride Properties, Inc."