The down payment is generally non-refundable in a U.S. home purchase unless specific conditions are met. Refunds may occur if the transaction fails due to financing issues, appraisal problems, or mutual cancellation per the purchase agreement. Otherwise, the down payment is forfeited.

In the U.S., down payments are legally binding deposits unless explicitly stated otherwise in the contract. The Consumer Financial Protection Bureau (CFPB) notes that 5-10% of homebuyers encounter refundable scenarios, primarily when loans are denied or properties fail to meet lending standards. For example, Fannie Mae’s 2022 report found that 8% of delayed closings involved partial or full down payment refunds due to financing collapses. Purchase agreements often include clauses allowing refunds if the buyer cancels within a specified timeframe (typically 3-5 days) or if the seller defaults. However, once the closing date passes, the down payment is typically irrevocable. The National Association of Realtors (NAR) estimates that 15% of homebuyers in 2023 sought down payment assistance programs, which may offer refunds under strict eligibility criteria. These refundable cases are exceptions, not the norm, emphasizing the importance of thorough contract review and financial planning.