Home Buying in Berwyn>Question Details

Jess1023, Home Buyer in Owensboro, KY

Hi, i was wondering if I can use my good faith money to go towards my down payment?? Or does that money have to go towards the principle of the loan?

Asked by Jess1023, Owensboro, KY Mon Aug 6, 2012

I don't know if it matters, but I am buying in Kentucky.

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2
Randy Schulenburg’s answer
Jess,

By 'good faith' money you're most likely referring to 'earnest money'. The earnest or good faith money is applied towards your down payment on a home you purchase. If, for example, you are applying for a VA Loan (Veteran's Administration) which typically does not require a down payment, your good faith money would be used towards any other costs you would typically incur at the closing.

You should speak directly with the Loan Officer who is handling the financing for your property. He/She will be able to give you a very detailed account of how the good faith money will be applied so that your questions are answered correctly for your exact situation.

Congratulations on your purchase in Kentucky. I hope your experience is flawless!
0 votes Thank Flag Link Mon Aug 6, 2012
Thank you!
Flag Tue Aug 7, 2012
Hi Jess,

Your good faith money/earnest money would go towards your down payment.
0 votes Thank Flag Link Mon Aug 6, 2012
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