A refund for a paid down payment on a home in the United States is generally not possible after closing. However, exceptions exist depending on the stage of the transaction, contractual terms, and legal jurisdiction. Earnest money deposits, typically held in escrow, may be refundable if the buyer cancels the deal within the agreed timeframe or the seller breaches the contract. Once the down payment is applied at closing, it becomes part of the purchase price and is non-refundable unless explicitly stated otherwise in the purchase agreement.

The U.S. real estate market follows state-specific laws and federal regulations governing earnest money and down payments. For instance, the Federal Housing Administration (FHA) mandates that earnest money deposits be held in an escrow account until closing, after which they are credited to the buyer’s closing costs or the purchase price. The National Association of Realtors (NAR) reports that approximately 5-10% of transactions involve earnest money disputes, with most resolved before closing. Once the sale is finalized, the down payment is irrevocable unless the contract includes a refund clause, which is rare. State laws, such as California’s Civil Code § 1708, require explicit written agreements for refunds beyond standard escrow procedures. Data from the U.S. Department of Housing and Urban Development (HUD) indicates that 95% of down payments are applied at closing without refund requests, underscoring the finality of such payments post-transaction. Legal counsel is critical to navigate exceptions, as unilateral refunds without contractual or statutory basis are typically denied in court.