Bank didn't approve the loan, does the buyer gets his deposit ?

[Tomer Amir]

Hi everyone,

The situation is this:

The buyer wants to buy a house for 200K, he singed on a purchase contract and on a deposit of 4K

Appraiser said that the house value is 170K and the lender is refusing to finance at a purchase price of 200K (he wants to go on 170K)

Obviously the seller doesn't want to sell at this price and the buyer can't finance the deal (Buyer's first house purchase ever) 

Dose the buyer have to pay the deposit?

In which cases he can get it back?

If the buyer's loan is FHA he is entitled to receive the deposit back by the low? (state of Forida)

Thanks!

[Patrick Liska]

Tomer,

 You are reading that wrong, that states that the earnest money ($2000 ) should be to the realtor/ attorney no later that 10 days after both parties sign the agreement. that has nothing to do with not purchasing the property. it is not the buyers fault that he has to back out of the deal, it did not appraise and the bank will not lend to him, therefore he should get his money back.