Fha amendatory clause form 2021 pdf-2025

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  1. Click ‘Get Form’ to open the FHA Amendatory Clause Form 2021 PDF in our editor.
  2. Begin by entering the Buyer(s) names and the Date of Agreement at the top of the form. This establishes who is involved in the transaction.
  3. Fill in the Seller(s) names and File Number, followed by the Property Address. Accurate details are crucial for clarity.
  4. In the FHA Amendatory Clause section, input the appraised value of the property as required. This amount should reflect not less than what is stated in your sales contract.
  5. Both Borrowers and Sellers must sign and date where indicated to confirm their agreement to the terms outlined in this clause.
  6. Complete the Real Estate Certification section by having all parties involved sign and date, ensuring that all information provided is accurate and truthful.

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The essential purpose of the FHA and VA amendatory/escape clauses is to give the buyer the right to terminate the sales contract if the sales price exceeds the appraised value of the Property.
An amendatory agreement is any legal agreement created with the intent of modifying the terms and conditions of an existing legal contract. This type of agreement can be used for any contract modification, no matter how big or small.
The buyer, co-buyer, seller, buyers agent and sellers agent must sign the FHA amendatory clause. The FHA will not insure or guarantee the loan if its not signed.
The FHA amendatory clause protects homebuyers if the appraised value of a home is lower than the purchase price. Specific to FHA loans, the clause allows a buyer to walk away from the deal or renegotiate without losing their earnest money.
The dollar amount to be inserted in the amendatory clause is the sales price as stated in the contract. If the borrower and seller agree to adjust the sales price in response to an appraised value that is less than the sales price, a new amendatory clause is not required.

People also ask

WARNING: Section 1010 of title 18, U.S.C.
Is the FHA amendatory clause required? The amendatory clause is a required clause in any FHA loan contract and is included to protect buyers from paying more for a home than it is worth.

fha amendatory clause form pdf