Can I get the deposit back? I'm moving to Connecticut and I paid the deposit for a new house already. However, another new house which used to be more expensive than the house I already paid for dropped in value and is now considerably less expensive than what I payed for, and for a better deal. Two house belong to same builder. Can I get the deposit back?

Best to ask the builder.  Many builders are not doing very well and would rather transfer the deposit to a different home than lose a customer and keep a relatively small deposit.  Ask the agent that you are dealing with and see what they say.

The broker may not have a say so in this. Once an offer has been accepted the deposit belongs to the seller. Does your contract have a contingency time frame to accomplish loan approval? Are you within that time frame?  What is the reason the deposit is not being returned? When a bank has denied you a loan, find out why and try getting approved with 1 or 2 more banks. Loans are tough but not impossible. Different brokerages and banks have different investors. 

If you believe your position is correct and legal try and negotiatiate for the return. If all else fails have an attorney write a letter to the broker and the seller.  Court action or arbitration may be necessary. Good luck.

PS I am seeing a lot of this situation in Souhern California. Especially with bank owned properties. They have found another way to recoup losses.

Generally in this situation, since both are owned by the builder, the builder (as long as their not arrogant) will credit the deposit towards the other property. Believe me, the chances of them screwing around are small as they'd rather sell at least one prop instead of holding on to both and just taking the small deposit in comparison. Developers need to get properties off their books even at a loss. Talk to your agent, or if dealing directly with the builder, then the builder/selling agent for them.