HUD Home Earnest Money Requirements
Earnest money must be certified funds and must be delivered to the Listing Broker within 2 business days of the buyer’s bid being acknowledged as the winning offer by HUD. It should accompany a signed copy of the HUD-9548 Contract of Sale and the filled out Buyer Select Closing Agent (BSCA) addendum.
Earnest Money check should be made payable to Buyer Select Closing Agent (BSCA).
The following table lays out the amount of Earnest Money required by transaction type:
|Transaction Type||Earnest Money Required|
|Sales Price: $50,000 or LESS||$500|
|Sales Price: $50,001 or MORE||$1000|
|Vacant Lots||50% of the Sales Price|
|Good Neighbor Next Door (GNND)||1% of Sales Price (minimum $500, maximum $2000)|
|HUD Approved Non-Profits||No Earnest Money is Required|