How much earnest money do I need in Florida?
Answered by Onias Derilus, Mortgage Capital · NMLS# 1859012 · Florida licensed mortgage broker
Earnest money in Florida typically runs 1% to 3% of the purchase price, though it's negotiable and rises in competitive situations. On a $400,000 home that's roughly $4,000 to $12,000.
The deposit is held in escrow and credited toward your down payment and closing costs at closing. With contract contingencies intact, it's refundable if the deal falls through for a covered reason. We'll advise an amount that's competitive but protected.
Typical amounts
Earnest money is a good-faith deposit you put down when your offer is accepted. In Florida it usually runs 1% to 3% of the purchase price, though a hot market can push it higher.
On a $300,000 home, that is roughly $3,000 to $9,000. The money goes into an escrow account, not to the seller directly.
Where the money ends up
Your earnest money is not an extra cost. At closing it applies to your down payment or closing costs, so it comes right back into the deal.
If the sale falls through under a contract contingency, you usually get it back. We will explain your contingencies so your deposit stays protected. Apply now and we will prep your offer strategy.