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If you have an existing FHA loan, you may wonder if you can get a second FHA loan to buy a new home. There is no limit to how many times a borrower can get an FHA loan.

The FHA amendatory clause gives you the right to back out of buying a home without losing any money if the value doesn't at least match the sales price. It's just one of many disclosures you'll sign if you take a loan backed by the Federal Housing Administration (FHA).

The reason the FHA and VA require the Amendatory/Escape Clause is to protect the buyer against a low appraisal. In other words, if the appraised value is lower than the agreed upon purchase price, the seller cannot require the buyer to purchase the home.

If the home appraisal comes in below the agreed-upon price of a home you plan to purchase, the FHA amendatory clause enables FHA home buyers to cancel the home purchase and receive a refund of their earnest money. In short, it will allow you, the home buyer, to back out of the sale without any sort of penalty.

0:02 1:28 How to Complete a FHA/VA Amendatory Clause Form - YouTube YouTube Start of suggested clip End of suggested clip As opposed to the appraisal. Contingency that's already in the the purchase. Agreement. This formMoreAs opposed to the appraisal. Contingency that's already in the the purchase. Agreement. This form says that that the transactions subject to the appraisal.

Amendatory Clause. – Section 35 of Commonwealth Act No. 1, Executive Order No. 207 of 1939, Section 2 and 3 of Presidential Decree No.

One of the most attractive characteristics of an FHA loan is their low down payment requirement. Contrary to traditional beliefs surrounding down payment requirements, one does not need to have funds to cover a 20% down payment in order to achieve homeownership.

The FHA amendatory clause specifically states that the buyer is not legally required to go through with a home sale if the appraised value comes back lower than the price listed on the sales contract.

A seller financing addendum outlines the terms under which the seller of a property agrees to loan money to the buyer in order to purchase their property.

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© Copyright 1997-2025
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Form Packages
Adoption
Bankruptcy
Contractors
Divorce
Home Sales
Employment
Identity Theft
Incorporation
Landlord Tenant
Living Trust
Name Change
Personal Planning
Small Business
Wills & Estates
Packages A-Z
Form Categories
Affidavits
Bankruptcy
Bill of Sale
Corporate - LLC
Divorce
Employment
Identity Theft
Internet Technology
Landlord Tenant
Living Wills
Name Change
Power of Attorney
Real Estate
Small Estates
Wills
All Forms
Forms A-Z
Form Library
Customer Service
Terms of Service
DMCA Policy
About Us
Blog
Affiliates
Contact Us
Privacy Notice
Delete My Account
Site Map
All Forms
Search all Forms
Industries
Forms in Spanish
Localized Forms
Legal Guides
Real Estate Handbook
All Guides
Prepared for You
Notarize
Incorporation services
Our Customers
For Consumers
For Small Business
For Attorneys
Our Sites
US Legal Forms
USLegal
FormsPass
pdfFiller
signNow
airSlate workflows
DocHub
Instapage
Social Media
Call us now toll free:
1-877-389-0141
As seen in:
  • USA Today logo picture
  • CBC News logo picture
  • LA Times logo picture
  • The Washington Post logo picture
  • AP logo picture
  • Forbes logo picture
© Copyright 1997-2025
airSlate Legal Forms, Inc.
3720 Flowood Dr, Flowood, Mississippi 39232