2 Thoughts on i’m buying a hud home where does my earnest money and escrow money go?
  1. Reply
    July 2, 2011 at 1:46 am

    your earnist money is there for you and it keeps the house for you on hold. escrow money is saved for things that maye used for such things as insurance. we waved that and paid our own insur but you hve to do this and i am not sure how you can pay it or not.

  2. Reply
    Kevin J
    July 2, 2011 at 2:03 am

    Your earnest money goes to the purchase of your home. Example – If you are purchasing a $ 200,000 and the seller is paying all your closing costs and you put $ 2,000 in earnest deposit, you now only owe $ 198,000 at closing.

    Your escrow money goes into an escrow account to pay your taxes and homeowner’s insurance when they are due and paid on your behalf by the mortgage company. Every month you will be paying into your escrow account with your monthly mortgage payment. If you refinance or sell your home, since the escrow money is your money, it will be given back to you. Just so you know, you can usually avoid having an escrow account as long as you put 20% down on the purchase of the home and pay your taxes and insurance on your own.

    Good luck with your purchase.

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