Form 22A Details

In navigating the complexities of acquiring real estate, the 22A Financing Addendum form stands as a pivotal document, enhancing the purchase and sale agreement by introducing specific terms related to financing the property purchase. Its most recent revision in July 2019, under the copyright of the Northwest Multiple Listing Service, offers a comprehensive outline to ensure both buyer and seller are on the same page regarding the financial arrangements of the property transaction. This addendum touches on a variety of critical aspects, including the application for and waiver of financing contingency, details of the loan being sought, responsibilities for loan-related costs, earnest money provisions, and the implications of appraisal outcomes on the transaction. It further stipulates actions if financing is not procured, inspection requirements, and the procedure should the property appraise for less than the sale price. Additionally, the form accommodates for FHA, VA, or USDA financing scenarios, detailing the specific considerations and contingencies for these types of loans. This framework not only delineates obligations and rights but also aims to protect the interests of all parties involved, making the financing process clearer and more manageable.

QuestionAnswer
Form NameForm 22A
Form Length3 pages
Fillable?Yes
Fillable fields45
Avg. time to fill out9 min 49 sec
Other namesform 22a financing addendum washington, sr 22a printable form, 22a financing addendum, financing addendum form 22a

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Form 22A

Financing Addendum

Rev. 7/19

Page 1 of 3

FINANCING ADDENDUM TO

PURCHASE & SALE AGREEMENT

©Copyright 2019

Northwest Multiple Listing Service

ALL RIGHTS RESERVED

The following is part of the Purchase and Sale Agreement dated __________________________________________

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between ______________________________________________________________________________ (“Buyer”)

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Buyer

Buyer

 

and ___________________________________________________________________________________(“Seller”)

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Seller

Seller

 

concerning _______________________________________________________________________ (the "Property”).

Address

City

State

Zip

1.LOAN APPLICATION/WAIVER OF CONTINGENCY.

a.Loan Application. This Agreement is contingent on Buyer obtaining the following type of loan or loans to purchase the Property (the “Loan(s)”):  Conventional First;  Conventional Second;  Bridge;  VA;  FHA;  USDA;  Home Equity Line of Credit;  Other _______________________________________________

(the “Financing Contingency”). Buyer shall pay  $ _________________; or  ______ % of the Purchase

Price down, in addition to the Loans. Buyer shall make application for the Loans to pay the balance of the Purchase Price and pay the application fee, if required, for the subject Property within ___________ days (5

days if not filled in) after mutual acceptance of this Agreement. For the purposes of this Addendum, “application” means the submission of Buyer’s financial information for the purposes of obtaining an extension of credit including Buyer’s name, income, social security number (if required), the Property address, purchase price, and the loan amount.

b.Waiver of Financing Contingency. If Buyer (i) fails to make application for financing for the Property within the agreed time; (ii) changes the type of loan at any time without Seller’s prior written consent; or (iii) changes the lender without Seller’s prior written consent after the agreed upon time to apply for financing expires, then the Financing Contingency shall be deemed waived. Buyer’s waiver of the Financing Contingency under this Paragraph 1(b) also constitutes waiver of Paragraph 7 (Appraisal Less Than Sales Price). For purposes of this Addendum, “lender” means either the party to whom the application was submitted or the party funding the loan.

2.LOAN INFORMATION.

a.Seller’s Request for Loan Information. At any time _______ days (10 days if not filled in) after mutual acceptance, Seller may give, once, a notice requesting information related to the status of Buyer’s loan application (“Request for Loan Information”). NWMLS Form 22AL may be used for this notice.

b.Buyer’s Loan Information Notice. Within _______ days (3 days if not filled in) of receiving Seller’s Request for Loan Information, Buyer shall give notice of the status of Buyer’s loan application (“Loan Information Notice”). Buyer’s notice shall be on NWMLS Form 22AP and shall include the date of application, the name of lender, a list of the information that Buyer has provided to lender, and a warranty that Buyer has provided all information requested by lender.

c.Failure to Provide Loan Information Notice. If Buyer fails to timely give to Seller a completed Loan Information Notice, Seller may give the Right to Terminate Notice described in Paragraph 3 (Seller’s Right to Terminate) at any time after the date that the Loan Information Notice is due.

3.SELLER’S RIGHT TO TERMINATE.

a.Right to Terminate Notice. At any time ________ days (30 days if not filled in) after mutual acceptance, Seller may give notice that Seller may terminate the Agreement at any time 3 days after delivery of that notice (the “Right to Terminate Notice”). NWMLS Form 22AR may be used for this notice.

b.Termination Notice. If Buyer has not previously waived the Financing Contingency, Seller may give notice of termination of this Agreement (the “Termination Notice”) any time following 3 days after delivery of the Right to Terminate Notice. If Seller gives the Termination Notice before Buyer has waived the Financing Contingency, this Agreement is terminated and the Earnest Money shall be refunded to Buyer. NWMLS Form 22AR shall be used for this notice. If not waived, the Financing Contingency shall survive the Closing Date.

c.Appraisal Less Than Sales Price. Buyer’s waiver of the Financing Contingency under this Paragraph 3  will; or  will not (will, if not filled in) constitute waiver of Paragraph 7 (Appraisal Less Than Sales Price).

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_________________________

________________________

_________________________

_________________________

Buyer’s Initials

Date

Buyer’s Initials

Date

Seller’s Initials

Date

Seller’s Initials

Date

Form 22A

Financing Addendum

Rev. 7/19

Page 2 of 3

FINANCING ADDENDUM TO

PURCHASE & SALE AGREEMENT

©Copyright 2019

Northwest Multiple Listing Service

ALL RIGHTS RESERVED

Continued

4.LOAN COST PROVISIONS. Seller shall pay up to  $ _________________; or  ______% of the Purchase 46

Price ($0.00 if not filled in), which shall be applied to Buyer’s Loan(s) and settlement costs, including prepaids, loan

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discount, loan fee, interest buy down, financing, closing or other costs allowed by lender. That amount shall include

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the following costs that lender is prohibited from collecting from Buyer: (a) up to $300.00 for Buyer's Loan(s) and

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settlement costs for FHA/USDA/VA loans; and (b) unless agreed otherwise below, Buyer’s share of the escrow fee

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for a VA loan. Seller shall pay the costs for (a) and (b), even if the amount agreed upon in this Paragraph 4 is

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insufficient to pay for those costs. If checked,  Buyer shall pay Buyer’s share of the escrow fee for the VA loan

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(note that VA regulations prohibit Buyer from paying loan and settlement costs exceeding one percent of the amount

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of the loan).

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5.EARNEST MONEY. If Buyer has not waived the Financing Contingency, and is unable to obtain financing by 55

Closing after a good faith effort then, on Buyer’s notice, this Agreement shall terminate. The Earnest Money shall

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be refunded to Buyer after lender confirms in writing (a) the date Buyer’s loan application for the Property was

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made, including a copy of the loan estimate that was provided to Buyer; (b) that Buyer possessed sufficient funds

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to close (e.g. down payment, closing costs, etc.); and (c) the reasons Buyer was unable to obtain financing by

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Closing. If Seller terminates this Agreement, the Earnest Money shall be refunded without need for such

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confirmation.

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6.INSPECTION. Seller shall permit inspections required by lender, including but not limited to structural, pest, 62

heating, plumbing, roof, electrical, septic, and well inspections. Seller is not obligated to pay for such inspections

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unless otherwise agreed.

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7. APPRAISAL LESS THAN SALE PRICE.

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a. Notice of Low Appraisal. If lender’s appraised value of the Property is less than the Purchase Price, Buyer

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may, within 3 days after receipt of a copy of lender’s appraisal, give notice of low appraisal, which shall

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include a copy of lender’s appraisal. NWMLS Form 22AN may be used for the notices in this Paragraph 7.

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b. Seller’s Response. Seller shall, within 10 days after Buyer’s notice of low appraisal, give notice of:

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(i) A reappraisal or reconsideration of value, at Seller’s expense, by the same appraiser or another appraiser

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acceptable to lender, in an amount not less than the Purchase Price. Buyer shall promptly seek lender’s

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approval of such reappraisal or reconsideration of value. The parties are advised that lender may elect

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not to accept a reappraisal or reconsideration of value;

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(ii)Seller’s consent to reduce the Purchase Price to an amount not more than the amount specified in the 74 appraisal or reappraisal by the same appraiser, or an appraisal by another appraiser acceptable to 75

lender, whichever is higher. (This provision is not applicable if this Agreement is conditioned on FHA, VA,

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or USDA financing. FHA, VA, and USDA financing does not permit the Buyer to be obligated to buy if the

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Seller reduces the Purchase Price to the appraised value. Buyer, however, has the option to buy at the

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reduced price.);

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(iii)Seller’s proposal to reduce the Purchase Price to an amount more than the amount specified in the 80 appraisal and for Buyer to pay the necessary additional funds (the amount the reduced Purchase Price 81

 

exceeds the appraised value) to close the sale; or

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(iv) Seller’s rejection of Buyer’s notice of low appraisal.

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If Seller timely delivers notice of (i) reappraisal or reconsideration of value; or (ii) consent to reduce the

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Purchase Price to an amount not more than the amount specified in the appraisal (except for FHA, VA, or

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USDA financing), and lender accepts Seller’s response, then Buyer shall be bound by Seller’s response.

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c. Buyer’s Reply.

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(i)

Buyer shall have 3 days from either Seller’s notice of rejection of low appraisal or, if Seller fails to respond,

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the day Seller’s response period ends, whichever is earlier, to (a) waive the Financing Contingency; or (b)

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terminate the Agreement, in which event the Earnest Money shall be refunded to Buyer.

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(ii)

If Seller proposes to reduce the Purchase Price to an amount more than the appraised value, Buyer shall

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have 3 days to (a) accept and represent that Buyer has sufficient funds to close the sale in accordance with

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this provision; or (b) terminate the Agreement, in which event the Earnest Money shall be refunded to Buyer. 93

_________________________

________________________

_________________________

_________________________

Buyer’s Initials

Date

Buyer’s Initials

Date

Seller’s Initials

Date

Seller’s Initials

Date

Form 22A

Financing Addendum

Rev. 7/19

Page 3 of 3

FINANCING ADDENDUM TO

PURCHASE & SALE AGREEMENT

©Copyright 2019

Northwest Multiple Listing Service

ALL RIGHTS RESERVED

Continued

 

(iii) If Seller consents to reduce the Purchase Price to an amount not more than the appraised value for FHA,

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VA, or USDA financing, Buyer shall have 3 days to (a) give notice that Buyer will buy at the reduced price;

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or (b) terminate the Agreement, in which event the Earnest Money shall be refunded to Buyer.

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Buyer’s inaction during this reply period shall result in termination of the Agreement and return of the Earnest

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Money to Buyer. The Closing Date shall be extended as necessary to accommodate the foregoing times for

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notices.

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8.FHA/VA/USDA - Appraisal Certificate. If this Agreement is contingent on Buyer obtaining FHA, VA, or USDA 100 financing, notwithstanding any other provisions of this Agreement, Buyer is not obligated to complete the 101 purchase of the Property unless Buyer has been given in accordance with HUD/FHA, VA, or USDA requirements 102 a written statement by FHA, VA, USDA or a Direct Endorsement lender, setting forth the appraised value of the 103 Property (excluding closing costs). Seller and Buyer shall execute a document setting forth the prior provision, or 104 similar provision, known as the FHA, VA, or USDA amendatory clause, as required by lender. Buyer shall pay 105

the costs of any appraisal. If the appraised value of the Property is less than the Purchase Price, Paragraph 7

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above shall apply.

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Purpose of Appraisal. The appraised valuation is arrived at only to determine the maximum mortgage FHA, VA,

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or USDA will insure. FHA, VA, or USDA do not warrant the value or the condition of the Property. Buyer agrees

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to satisfy himself/herself that the price and condition of the Property are acceptable.

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9.EXTENSION OF CLOSING. If, through no fault of Buyer, lender is required by 12 CFR 1026 to give corrected 111

disclosures to Buyer due to (a) a change in the Annual Percentage Rate (“APR”) of Buyer’s Loan(s) by .125% or

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more for a fixed rate loan or .250% or more for an adjustable rate loan; (b) a change in the loan product; or (c) the

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addition of a prepayment penalty, then upon notice from Buyer, the Closing Date shall be extended for up to 4 days

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to accommodate the requirements of Regulation Z of the Truth in Lending Act. This paragraph shall survive Buyer’s

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waiver of this Financing Contingency.

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_________________________

________________________

_________________________

_________________________

Buyer’s Initials

Date

Buyer’s Initials

Date

Seller’s Initials

Date

Seller’s Initials

Date

How to Edit Form 22A Online for Free

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Step 1: The very first step will be to choose the orange "Get Form Now" button.

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You have to provide the next details so you can create the file:

filling in financing addendum form 22a part 1

Include the essential details in the LOAN INFORMATION, a Sellers Request for Loan, b Buyers Loan Information Notice, c Failure to Provide Loan, SELLERS RIGHT TO TERMINATE, a Right to Terminate Notice At any, and b Termination Notice If Buyer has box.

stage 2 to finishing financing addendum form 22a

Point out the most vital details about the b Termination Notice If Buyer has, c Appraisal Less Than Sales Price, or will not will if not filled in, and Buyers Initials Date Buyers field.

step 3 to completing financing addendum form 22a

Inside the paragraph FINANCING ADDENDUM TO PURCHASE, LOAN COST PROVISIONS Seller shall, EARNEST MONEY If Buyer has not, INSPECTION Seller shall permit, APPRAISAL LESS THAN SALE PRICE, and a Notice of Low Appraisal If, record the rights and obligations of the parties.

Completing financing addendum form 22a stage 4

Look at the areas ii If Seller proposes to reduce, and Buyers Initials Date Buyers and thereafter complete them.

stage 5 to completing financing addendum form 22a

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