Homebuilders often sell homes before completion, with buyers providing a down payment under a purchase agreement. These funds are held in escrow by the homebuilder until the home is finished and delivered to the buyer. During construction, these funds cannot be used by the homebuilder.

A Downpayment Bond serves to protect the buyer’s down payment while allowing the homebuilder to use these funds for construction. This arrangement also applies to commercial building projects, where Downpayment Bonds are essential.

HOW TO APPLY FOR AND SECURE A DOWNPAYMENT BOND

Prepare and submit all required documentation as outlined in the: