Deposit Boost for Veterans is a short-term loan of up to $5,000 that increases the earnest money deposit you put down with an offer on a home. We wire the money straight to the title company's escrow account, and it comes back to us when your purchase closes. There is no interest and no payments for 90 days.
Admiral Tom Lynch created it for one reason: a Veteran making an offer in a competitive market should not be at a disadvantage because their savings are tied up elsewhere.
What Earnest Money Is
When you make an offer on a house, you include a deposit. It is money held in escrow that shows the seller you are serious about following through.
It is not a fee paid to anyone. It is held by a neutral third party, such as the title company, while the sale proceeds.
The amount is negotiable, so a seller reading two similar offers will notice which one carries the larger deposit.
Why the Deposit Is Important
A bigger deposit says the buyer expects to close and is willing to put money behind that expectation.
That is why a stronger deposit can help an offer compete, including against buyers paying cash. It is one of the few parts of an offer you can strengthen without raising your price.
The problem is that the money has to come from somewhere. Veterans who have their savings committed to a move, a deployment, or simply to staying afloat between homes are often making offers with the smallest deposit they can manage.
Deposit Boost exists to close that gap.
How Deposit Boost Works
You can receive up to $5,000, with 0% interest and no payments for 90 days.
We wire the funds directly to the title company's escrow account, where they sit as a buyer-provided deposit alongside anything you contribute yourself.
The funds are reimbursed to us at close of escrow. No payment is needed from you, and there is no cost.
Your own cash stays where it is, in your account, available for the things that come with moving into a house.
The One Condition to Keep in Mind
Deposit Boost is interest-free and payment-free for 90 days, and you should close on your home within that window.
In the event it runs longer than 90 days, the loan would be payable at 9.99% APR.
Ask your Loan Expert what a realistic timeline looks like for the home you are bidding on.
What Deposit Boost Is Not
It is not your down payment. With NewDay Home, you do not need any down payment at all. Your service is your down payment.
It is not your closing costs. Those are handled separately by the NewDay Home Advantage Loan, which covers all or part of them so you don’t need to pay them upfront.
It is not cash in your hand. The money goes to the escrow account, not to you. It strengthens your offer rather than your bank balance.
Taken together, the three pieces address the three points where a home purchase normally asks a Veteran for money: the deposit with the offer, the down payment, and the costs at closing.
Your Deposit Is Protected If the Appraisal Comes In Low
If there is more money in escrow, what happens if the deal falls through?
Every VA purchase contract has to include the VA Escape Clause. If the home appraises below the contract price, that clause lets you renegotiate, proceed by covering the difference yourself, or walk away without forfeiting your earnest money. Including it is the lender's responsibility, and VA will not guarantee the loan without it.
So the protection that applies to your own earnest money applies here too.
Who It Is For
Deposit Boost is part of NewDay Home, so it is for those looking to buy a home rather than refinance.
It tends to matter most in two situations:
- A competitive market, where several offers land on the same house and small differences decide which one the seller takes
- A move where your money is already spoken for
If either sounds like your situation, ask about it when you talk to us.
To Sum It Up
Most of what determines whether an offer wins comes down to money the buyer already has. Deposit Boost changes that for Veterans by putting up to $5,000 into escrow on your behalf, at no cost when you close inside 90 days.
It won’t make a house cheaper, but it does is let you compete for one without emptying your savings to do it.
Call 800-405-4187 to ask whether Deposit Boost fits your purchase.
FAQs
Is Deposit Boost a loan?
Yes. It is a short-term loan of up to $5,000 that carries no interest and no payments for 90 days, and it is reimbursed at close of escrow.
Do I have to pay anything back myself?
Not if you close within 90 days. The funds are reimbursed to us at close of escrow, with no payment needed from you and no cost. If the purchase runs past 90 days, the loan becomes payable at 9.99% APR.
How much can I get?
Up to $5,000.
Can I use it for my down payment or closing costs?
No. It applies to the earnest money deposit only. NewDay Home covers the down payment, and the Advantage Loan covers closing costs.
Does the money come to me?
No. We wire it directly to the title company's escrow account as a buyer-provided deposit.
What if my offer is rejected?
Talk to your Loan Expert about how the deposit is handled in that situation.
