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A third (3rd) party financing addendum is attached to a sales contract that outlines the terms of a loan (e.g., conventional, FHA, VA) that is agreeable to the buyer in order to close on the property. The sales contract is usually contingent upon the buyer receiving the loan as detailed in the addendum.
An addendum in real estate transactions allows you to add terms to your contract before it is signed by both parties. Common addendums include contingencies such as home inspections or the sale of the buyer's house, as well as including certain items, like furniture.
It contains additional terms and conditions that were not present in the original contract forms. An addendum can be used to modify or supplement the terms of the contract. It can be added to the contract at any time before the closing date, provided that both parties agree to the changes.
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.
A seller financing addendum defines the terms for how a seller finances a buyer's real estate purchase. It is added to the original purchase agreement to establish details such as the type of financing (e.g., balloon mortgage, adjustable rate mortgage, amortized loan), interest rate, and other relevant terms.