---
title: What is an earnest money deposit?
description: An Earnest Money Deposit (EMD) or Good Faith Deposit is a deposit (usually 3% of the purchase price) from a buyer accompanying an offer for a purchase.
---

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# What is an earnest money deposit?

## A deposit from a buyer accompanying an offer for a home purchase.

An Earnest Money Deposit (EMD) or Good Faith Deposit is a deposit from a buyer accompanying an offer for a home purchase. **The EMD amount is normally 3% of the purchase price but can vary if specified otherwise in the proposed purchase contract;** it will eventually go towards your overall down payment amount due. 

**The purpose of an earnest money deposit is to prove an offer is serious and in good faith**. This money is held in escrow and is typically required within 72 hours of the offer’s acceptance. 

The EMD can be a wire, a personal check (in some cases), or a cashier’s check. **Like all funds used in a purchase transaction, the EMD must be fully paper-trailed.**

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