Earnest money deposit in San Diego
Quick answer: Earnest money is a good-faith deposit into escrow. Fannie Mae calls 1% to 3% of the offer price typical. Your contract sets the real number. It counts toward down payment and closing costs. The lender has to see where it came from. Plan on two months of bank statements and proof the deposit cleared.
California purchase files run through escrow. When the offer is accepted, you wire or deliver the deposit the contract calls for. Escrow holds it. That deposit is proof you mean it. Sellers read that signal hard in San Diego County.
How earnest money fits the money stack
- Not the down payment. Down payment is the gap between purchase price and loan amount. Earnest money is a deposit that later applies toward what you owe at closing.
- Credits cash to close. Cash to close = down payment + closing costs − credits. Earnest money already sitting in escrow is one of those credits. See purchase closing costs and cash to close breakdown.
- Contract sets the number. Amount, deadline, and form (wire vs check) live in the purchase agreement. Your realtor owns that negotiation. We size the loan around the price and the program.
What the lender checks on your deposit
Fannie Mae's Selling Guide section B3-4.3-09 says the deposit is an acceptable source of funds for the down payment and closing costs. If it counts toward your minimum contribution, the lender must verify the source. That means bank statements showing the average balance for the past two months could support the deposit, plus a copy of the canceled check or a written statement from whoever holds the deposit. Large deposits, and deposits above what is customary for the area, get a closer look.
Fannie Mae's homebuyer page says the deposit is typically 1% to 3% of the offer price. On an $850,000 offer that range is $8,500 to $25,500, my own arithmetic. It is a typical range, not a rule.
- Send the deposit from your own account so the paper trail is clean.
- Do not move money in from several places the week of the deposit. Unexplained deposits can need a paper trail too.
- Keep the escrow receipt with your statements.
Not sure how much to hold back? We build the whole cash to close on a pre-approval before you write the offer.
Contingencies and release
If the deal dies inside a written contingency, the deposit usually comes back under the contract rules. If you waive contingencies or miss a deadline, release can go the other way. That is contract law and escrow practice, not a mortgage product rule we invent here. Talk to your agent before you remove financing, appraisal, or inspection protections.
Loan size is still loan amount
Earnest money does not change the 2026 San Diego County 1-unit high-cost conforming line of $1,104,000. Baseline $832,750. Jumbo generally above $1,104,000. VA full entitlement is not capped the same way. See loan limits. FHA still typically starts at 3.5% down when that program fits. Start the file at get pre-approved San Diego. Company NMLS 2394495. Amir Nurani NMLS 197458. San Diego County and Riverside County. Call (619) 366-9494.
Frequently asked questions
A good-faith deposit into escrow after your offer is accepted. It is not the full down payment.
Yes. It is a credit against what you bring.
Two months of bank statements plus a canceled check or deposit confirmation.
The contract and contingency timeline decide release. Ask your agent and escrow before waiving anything.
Sources: Fannie Mae Selling Guide B3-4.3-09, Earnest Money Deposit. Fannie Mae, Making an Offer (yourhome.fanniemae.com).
Writing an offer and need cash to close clear?
Send the price, down payment plan, and deposit you are putting up. We map it on a real file. No invented deposit percent on this page.
Get Pre-Approved(619) 366-9494 · Amir Nurani · NMLS #197458
Left Coast Leaders, Inc. · NMLS #2394495 · DRE #02191517 · Equal Housing Lender · San Diego County and Riverside County · San Diego, CA