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The VA Form 26-1802a serves as a loan application for both VA and HUD. Lenders and Veterans use the form to apply for guaranty of home loans. The latest form for HUD/VA Addendum to Uniform Residential Loan Application (VA Form 26-1802a) expires 2022-09-30 and can be found here.
The amendatory clause kicks in if you receive an FHA or VA appraisal that values the home below the sales price. Unless you agree in writing to accept the lower price or negotiate to pay all or a portion of the difference, you can cancel the transaction and receive your earnest money back.
When is the VA escape clause not required? A VA escape clause is required for all VA home loan sale contracts. FHA loans have a requirement in the amendatory clause. However, other loan types, such as conventional loans, are not subject to this requirement.
VA loans feature their own unique appraisal contingency known as the VA Amendment to Contract. Both buyer and seller must sign this key document. The Amendment to Contract contingency protects a VA buyers earnest money if they walk away from a deal because the appraised value came in below the purchase price.
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