Is earnest money the same as a down payment?

No. The earnest money deposit is submitted early with your offer to show good faith. The down payment is paid at closing and represents your equity in the property. Your EMD is usually credited toward your down payment when the sale closes.

Can earnest money be refunded?

Yes. If you cancel the contract for a valid reason covered by your contingencies — such as financing, appraisal, or inspection — your EMD is typically refunded in full.

Who gets the earnest money if the deal falls through?

If the buyer voids the contract properly, the buyer usually gets it back. If the buyer defaults without cause, the seller may keep it as liquidated damages. If there’s a dispute, the funds stay in escrow until both parties sign a release or a court decides.

Can I increase my EMD after contract ratification?

Yes. Buyers sometimes increase the deposit after contingencies are removed to show continued commitment and strengthen their standing before closing.

Is an EMD required for every home purchase?

Technically no — but nearly every seller expects one. Submitting an offer without an EMD makes it look weak and could cause a seller to dismiss it altogether.