In general, the earnest money deposit (EMD) is negotiable. In the case of HUD homes there are set rules. The HUD rules are actually fairly good guidelines to utilize when making your offer on any bank owned home.

HUD Homes:
Amount to be submitted with each awarded HUD bid:
Owner Occupant and Investors - Purchase price of $50,000 and under - $500
Owner Occupant and Investors - Purchase price of $50,001 to $249,999 - $1,000
Owner Occupant and Investors – Purchase price of $250,000 and over - $2,000
Owner Occupant and Investors - Bids submitted on vacant lots require 50% of the list price

Good Neighbor Next Door Bidders - 1% of the list price, but no less than $500 and no more than $2,000

Caution: The payee and submission of the earnest money will vary based on the HUD region. Please read the instructions carefully to avoid mistakes that may lead to cancellation of the bid award.

Bank-Institution Held Homes

Generally, a minimum of 10% is required for cash purchases.
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All Earnest Money Deposits must be in the form of a Cashiers Check or Money Order.