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Third (3rd) Party Financing Addendum – For Conventional, FHA, or VA Loans

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Third (3rd) Party Financing Addendum – For Conventional, FHA, or VA Loans

Updated August 01, 2023

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. If the buyer is not able to obtain the terms as detailed, the sales contract becomes void with all earnest money being returned to the buyer. If the buyer is able to get approved for financing in accordance with the terms of the addendum, the closing should occur within the specified time period (no more than 30 days).

Seller Financing Addendum – Use if the buyer is going to be seeking a loan directly from the seller of the property.

By Type

Conventional Financing Addendum – Provided by the Association of Realtors for buyers to enter the financing details they would need in order to close on the property.

FHA / VA Financing Addendum – Contains special language in the case of government FHA and VA loans.

Reverse Mortgage Financing Addendum – Typically for individuals 62 and over, allows the seller to collect cash in exchange for equity in their home.

USDA Financing Addendum – For buyers in rural and suburban areas who usually do not qualify for conventional loans.

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