FHA/VA Financing Addendum, Standard Form 2A4-T at a glance
What it is: This Addendum is attached to and made a part of the Offer to Purchase and Contract (“Contract”) between Seller and Buyer for the Property.
Where and when to file: The mortgage lender must receive an original signature copy.
A filled-in FHA/VA Financing Addendum, Standard Form 2A4-T example: a buyer completes the FHA financing addendum
How to fill out FHA/VA Financing Addendum, Standard Form 2A4-T, box by box
Property, Seller and Buyer
Write the Property, the Seller and the Buyer.
FHA FINANCING
Under FHA FINANCING, it is expressly agreed that, notwithstanding any other provisions of this contract, the purchaser shall not be obligated to complete the purchase of the property described herein or to incur any penalty for forfeiture of earnest money deposits or otherwise unless the purchaser has been given in accordance with HUD/FHA or DVA requirements a written statement issued by the Federal Housing Commissioner, the Department of Veterans Affairs or a Direct Endorsement lender, setting forth the appraised value of the property of not less than $.
The purchaser shall, however, have the privilege and option of proceeding with the consummation of the contract without regard to the amount of the appraised valuation.
The appraised valuation is arrived at to determine the maximum mortgage the Department of Housing and Urban Development will insure.
HUD does not warrant the value nor the condition of the property.
The purchaser should satisfy himself/herself that the price and condition of the property are acceptable.
Buyer initials and Seller initials
Buyer initials and Seller initials go on the page.
Buyer/Borrower and Buyer/Co-Borrower signing
By signing you certify that you have read & understand the statements: Buyer/Borrower and each Buyer/Co-Borrower write a date and sign (SEAL).
Under REAL ESTATE CERTIFICATION, the seller, the purchaser, and the broker hereby certify that the terms of the sales contract are true to the best of their knowledge and belief and it is agreed that any other agreement entered into by any of the parties is fully disclosed and attached to the sales contract.
The seller, the purchaser, and the broker fully understand that it is a federal crime punishable by fine or imprisonment or both to knowingly make any false statement concerning any of the facts as applicable under the provisions of Title 18, United States Code, Sections 1012 and 1014.
Selling Firm, Seller and Listing Firm signing
Selling Firm and Listing Firm each write a By line, and each Seller writes a date and signs (SEAL).
More rules for FHA/VA Financing Addendum, Standard Form 2A4-T
Under VA FINANCING, it is expressly agreed that, notwithstanding any other provisions of this contract, the Buyer shall not incur any penalty by forfeiture of earnest money deposits or otherwise be obligated to complete the purchase of the Property described herein, if the contract purchase price or cost exceeds the reasonable value of the Property established by the Department of Veterans Affairs.
The Buyer shall, however, have the privilege and option of proceeding with the consummation of this contract without regard to the amount of the reasonable value established by DVA.
If Buyer elects to complete the purchase at an amount in excess of the reasonable value established by DVA, Buyer shall pay such excess amount in cash from a source which Buyer agrees to disclose to the DVA and which Buyer represents will not be from borrowed funds except as approved by DVA.
If DVA reasonable value of the Property is less than the sales price, Seller shall have the option of reducing the sales price to an amount equal to the DVA reasonable value and the parties to the sale may close at such lower sales price with appropriate adjustments to the sales contract.
If Buyer obtains a VA loan, the DVA may or may not require well/water, septic/sewer, and/or wood destroying insect inspections to be performed.
If required to be performed, such inspections may or may not be required to be at Seller's expense.
If such inspections are required to be performed and are required to be at Seller's expense, Seller agrees to pay the cost of such inspections, subject to the limit set forth in Paragraph 8(h) of the Contract.
In the event of a conflict between this Addendum and the Contract, this Addendum shall control, except that in the case of such a conflict as to the description of the Property or the identity of the Buyer or Seller, the Contract shall control.
The North Carolina Association of REALTORS®, Inc. and the North Carolina Bar Association make no representation as to the legal validity or adequacy of any provision of this form in any specific transaction.
If you do not understand this form or feel that it does not provide for your legal needs, you should consult a North Carolina real estate attorney before you sign it.
Sources
[1] Standard Form 2A4-T (Revised 7/2011), FHA/VA Financing Addendum, North Carolina Bar Association and North Carolina Association of REALTORS, Inc. (the Official source link on this page).
