# Contingency

> A contingency is a condition in a home purchase contract that must be met for the sale to close, such as financing, appraisal or inspection approval.

URL: https://mortgage-math-us.com/glossary/contingency/  
Last reviewed: 2026-10-29 · By the MortgageMath US Editorial team

## Quick answer

**A contingency** is a condition written into a home purchase agreement that must be met for the sale to go through — for example, getting a mortgage, an appraisal at or above the price, or an acceptable home inspection. If a contingency isn’t met by its deadline, the buyer can generally cancel and get the [earnest money](https://mortgage-math-us.com/glossary/earnest-money/) back.

## Key facts

| Fact | Value | Source | As of |
|---|---|---|---|
| You get the appraisal at least this long before closing | 3 business days | [CFPB, Regulation B 1002.14](https://www.consumerfinance.gov/rules-policy/regulations/1002/14) | Oct 28, 2026 |

## Common contingencies

| Contingency | Protects you if… |
|---|---|
| Financing (mortgage) | you can’t get the loan by the deadline |
| [Appraisal](https://mortgage-math-us.com/glossary/appraisal/) | the home appraises below the price, so you can renegotiate or walk away |
| [Home inspection](https://mortgage-math-us.com/glossary/home-inspection/) | the inspector finds problems you want repaired, credited or don’t accept |
| Home sale | you must sell your current home first and can’t by the deadline |

Each has a deadline in the contract. Miss it without acting, and the protection usually lapses. Your lender must give you a copy of the appraisal at least 3 business days before closing, but don’t wait for that if your appraisal deadline comes sooner — ask for the report as soon as it’s done.

## Waiving a contingency

In a competitive market, buyers sometimes drop contingencies to make an offer stronger. The risk is real: without a financing or appraisal contingency, a denied loan or a low appraisal can cost you your deposit or force you to bring more cash. An FHA appraisal is not an inspection, and FHA doesn’t guarantee the home’s condition. A [pre-approval](https://mortgage-math-us.com/glossary/pre-approval/) makes the financing contingency less likely to be needed. See the [appraisal and inspection guide](https://mortgage-math-us.com/buying/appraisal-and-inspection/).

## Sources

- [CFPB, Regulation B 1002.14](https://www.consumerfinance.gov/rules-policy/regulations/1002/14) — Lender must give you the appraisal at least this long before closing (or promptly) (Oct 28, 2026)
- [Freddie Mac My Home: Understanding contingency clauses in homebuying](https://myhome.freddiemac.com/blog/homebuying/understanding-contingencies)
- [HUD: For your protection — get a home inspection (HUD-92564-CN)](https://www.hud.gov/sites/dfiles/OCHCO/documents/92564-CN.pdf)

_General information, not financial advice._