A down payment is generally non-refundable after purchasing a home under standard real estate contracts. However, refunds may be possible in specific scenarios such as seller agreement breaches, mortgage default with partial recovery, or participation in certain government-assisted programs. Refund policies are typically outlined in the purchase agreement, and disputes often require legal resolution.

The refundability of a down payment hinges on contractual terms and circumstances. In most conventional transactions, the down payment serves as earnest money to demonstrate buyer commitment, and its return is contingent on closing. The Consumer Financial Protection Bureau (CFPB) reports that 88% of homebuyers sign standard contracts without refundable down payment clauses, emphasizing the importance of reviewing agreements. Exceptions include seller-backed programs like the U.S. Department of Housing and Urban Development’s (HUD) Section 8, which may offer partial refunds under specific hardship conditions. Data from the National Association of Realtors (NAR) reveals that 12% of recent buyers encountered down payment disputes, often resolved through negotiation or legal channels. Financial institutions like Fannie Mae mandate non-refundable down payments to mitigate default risks, a practice aligned with their 2022 guidelines. Government programs such as the Homebuyers Education Fund occasionally provide refundable grants for first-time buyers, but eligibility criteria and repayment terms strictly govern these exceptions. Ultimately, refund eligibility depends on contractual language, program participation, and adherence to federal or state regulations.