Would I lose my earnest money if I do not have enough downpayment

[Jin Zhang]

Hi everyone, 

I am under contract with a property. Due to personal reasons, I can not put down 20% anymore. I can only put down 15%. However, my income to debt ratio would be too high for the loan to be qualified in this case. If my loan is disapproved due to this reason, would I lose my earnest money? Any insight would be greatly appreciated! Thanks! 

Best,

Jin 

[Dustin Allen]

@Jin Zhang

This depends on how the contract was written. If you are using an agent, you should be having a discussion with them immediately. It depends on how you wrote your financing into the loan and whether you signed the liquidated damages clause.

I’m not an attorney and you should consult one about the legal ramifications of not performing a contract you signed.