Property Manager · Baton Rouge, LA · Member since 2014 · 2k+ posts · 195 votes
I need to know if I can get my Earnest Money Back on a pending Real Estate Deal. Pertinet to the deal and to avoid a long scenario. I paid $500 to the Agent of a seller based on a pre approval letter from my Lender. The purchase agreement was subject to getting a FHA 203K Loan. Now a few days before the closing, the Lender claims my income has to average out a certain amount over a period of years. Unlike a conventional Loan, my income is not averaging out high enough for a FHA 203K (Acquisition Rehab) Loan. Can I move on and ask for my Earnest money back?
Rental Property Investor · Brookline, MA · Member since 2013 · 1k+ posts · 777 votes
11y
@Account Closed
You should be able to. If the financing contingent was written correctly.
You didn't get financing, therefore you are not at fault for the deal not going through. Thus you should be entitled to getting the earnest money back.
They probably won't balk. If they do, have your lender contact them directly and acknowledge that funding was not approved.
You should be able to. If the financing contingent was written correctly.
You didn't get financing, therefore you are not at fault for the deal not going through. Thus you should be entitled to getting the earnest money back.
They probably won't balk. If they do, have your lender contact them directly and acknowledge that funding was not approved.
Thanks, was hoping someone was in agreement. This is what I was thinking
Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
11y
As@Darrell Shepherd says, simply read your contract, or have your agent explain it to you. The FL state agreement for example, has a financing contingency of course, but it has to be exercised at least 7 days prior to the scheduled closing date. We don't know how yours is worded. As for your loan, it's ridiculous that your lender didn't qualify you as to income in the very beginning. The income requirement though for a 203k is less than for a conventional, and both required at least a a 2 year look back.