Fha/va Loan Addendum To Real Estate Purchase Contract Form
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1
2FHA/VA LOAN ADDENDUM
TO
REAL ESTATE PURCHASE CONTRACT
THIS IS AN ADDENDUM to that REAL ESTATE PURCHASE CONTRACT (the “REPC” with an Offer Reference Date of
____________________, 20 ____, including all prior addenda and counteroffers, between ________________________
____________________ as Buyer, and _____________________________ as Seller, regarding the Property located at
__________________________________________________________________.
The following terms are hereby
incorporated as part of the REPC. All references to FHA/VA shall mean the Federal Housing Administration/Department
of Veterans Affairs. (CHECK APPLICABLE BOXES)
1.
Buyer [
] DOES [
] DOES NOT intend to occupy the Property as his/her residence.
2.
Buyer shall not be obligated to complete the purchase of the Property or incur any penalty or forfeiture of the
Earnest Money Deposit or other down payment, or otherwise be obligated to purchase the Property, if: (a) for a VA loan,
the Purchase Price exceeds the reasonable value of the Property established by the VA Certificate of Reasonable Value
or VA appraisal; or (b) for an FHA loan, the Purchase Price exceeds the appraised value of the Property (excluding
closing costs) established by the FHA appraisal. Buyer shall, however, have the right to complete the sale without regard
to the amount of the appraised valuation made by the applicable FHA or the VA. The appraised valuation is used to
determine the maximum loan that FHA will insure or VA will guarantee. Neither FHA nor the VA warrants the value or
condition of the Property. Buyer should satisfy himself/herself that the price and condition of the Property are acceptable.
Buyer acknowledges that an FHA/VA appraisal does not constitute a property inspection.
3.
Seller shall make any and all appraisal required repairs, provided that the cost does not exceed $_________.
This obligation to make appraisal-required repairs does not modify Seller’s obligations under Section 10.2 of the REPC.
4.
If required by applicable FHA or VA rules, Seller shall furnish Buyer with a current Pest Control Report showing
the Property to be free and clear from termite infestation. In the event of termite infestation, Seller shall eradicate the
same and repair any damage at Seller’s expense, provided that the cost does not exceed $_________________.
5.
There are certain costs associated with the granting of a mortgage loan, some of which FHA/VA will not allow the
Buyer to pay. (Check applicable box):
5.1
[
]
Seller shall contribute at settlement an amount toward payment of loan discount points and other
loan and closing related costs (“Loan Costs”). The amount of Seller’s contribution shall be $_______. Such contribution
shall first be applied to Loan Costs that FHA/VA will not permit Buyer to pay, and any remainder shall be allocated at
Buyer’s discretion toward remaining Loan Costs. Seller shall have no further obligation toward Loan Costs. If the amount
of Seller’s contribution exceeds the amount of actual Loan Costs, then such excess shall be returned to Seller. Seller’s
agreement to contribute toward payment of Loan Costs shall not modify Seller’s obligations under Sections 3 and 10.1 of
the REPC.
5.2
[
]
Seller shall not contribute any amount toward Loan Costs.
6.
[APPLIES TO FHA ONLY] The undersigned hereby certify that the terms of the REPC are true to the best of our
knowledge and belief, and that any other agreement entered into by any of the parties has been fully disclosed and is
attached to the REPC.
7.
If any provision in the REPC or this ADDENDUM is inconsistent with any currently applicable law governing
FHA/VA loan transactions, then to the extent of such inconsistency, that law shall govern.
Page 1 of 2 pages Seller’s Initials________ Date________ Buyer’s Initials___________ Date__________
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