Trec Form 40 5 – Fill Out and Use This PDF

docum ent s r equir ed by lender for Cr edit

Approv al. Cr edit

Appr oval w ill be deem ed t o have been

obt ained w hen ( 1) t he t er m s of t he

loan( s) descr ibed

below ar e av ailable and ( 2) lender

and cr edit hist or y . I f Buy er cannot obt ain Cr edit

Appr ov al, Buy er

m ay giv e w r it t en

not ice t o

Seller w it hin ____ days aft er t he effect ive dat e of

t his cont r act and

t his cont r act

w ill

t er m inat e

and t he ear nest m oney w ill be r efunded t o Buyer . I f

Bu y e r d oe s n ot

g iv e su ch

n ot ice w it h in

t h e

t im e r e q u ir e d , t h is con t r a ct w ill n o lon g e r b e su b j e ct t o Cr e d it Ap p r ov a l. Tim e is of

t h e

e sse n ce f or t h is p a r a g r a p h a n d st r ict com p lia n ce w it h t h e t im e f or p e r f or m a n ce is

r e q u ir e d .

NOTE: Cr edit Appr ov al does not include appr ov al of

lender 's under w r it ing r equir em ent s for t he

Pr oper t y , as specified in Par agr aph 4 . A. ( 1) of t he cont r act .

Each not e m ust be secur ed by v endor ’s and deed of t r ust liens.

CH ECK APPLI CABLE BOX ES:

A. CONVENTI ONAL FI NANCI NG:

( 1) A fir st m or t gage loan in t he pr incipal am ount of $

( ex cluding

any financed PMI

pr em ium ) ,

due in full

in

y ear ( s) ,

w it h int er est

not t o

ex ceed

%

per annum for t he fir st

y ear ( s) of t he loan w it h Adj ust ed

Or iginat ion Char ges as show n on Buy er ’s Good Fait h

Est im at e

for t he loan

not t o

ex ceed

% of t he loan .

( 2) A second m or t gage loan in t he pr incipal am ount of $

( ex cluding

any financed PMI

prem ium ) ,

due in full in

year( s) ,

w it h int erest

not t o

ex ceed

% per annum for t he fir st

y ear ( s) of t he loan w it h

Adj ust ed Or iginat ion Char ges as show n on Buyer ’s Good Fait h Est im at e for t he loan

not t o ex ceed

% of t he loan .

B. TEXAS VETERANS LOAN: A loan( s) fr om t he Tex as Vet er ans Land Boar d of $

for a per iod in t he t ot al am ount of

y ear s at

t he int er est

r at e est ablished by t he Tex as

Vet er ans Land Boar d.

C. FHA I NSURED FI NANCI NG: A Sect ion

FHA insur ed loan of not less t han

$

( ex cluding any financed MI P) , am or t izable m ont hly for not less t han

y ear s, w it h int er est not t o ex ceed

% per annum

for t he fir st

year ( s)

of t he loan w it h Adj ust ed Or iginat ion Char ges as show n on Buy er ’s Good Fait h Est im at e for

t he loan not t o ex ceed

% of t he loan .

As r equir ed by HUD- FHA, if FHA v aluat ion is

unknow n, " I t is ex pr essly

agr eed t hat , not w it hst anding any ot her

pr ov ision of t his cont r act ,

t he pur chaser ( Buy er )

shall not be

obligat ed

t o

com plet e t he

pur chase of t he Pr oper t y

of Vet er ans Affair s, or a Dir ect

Endor sem ent Lender

set t ing for t h t he appr aised v alue of

t he Pr oper t y of not less t han $

.

The pur chaser ( Buy er ) shall hav e t he

I nit ialed for ident ificat ion by Buy er

and Seller

TREC NO. 40 - 5

Thir d Par t y Financing Condit ion Addendum Concer ning

Page 2 of 2

12 - 05 - 11

( Addr ess of Pr oper t y )

am ount of t he appr aised v aluat ion .

The appr aised v aluat ion is ar r iv ed at t o det er m ine t he

m ax im um m or t gage t he Depar t m ent of Housing and Ur ban Dev elopm ent w ill insur e.

HUD

does not w ar r ant t he v alue or t he condit ion of t he Pr oper t y . The pur chaser ( Buy er ) should

sat isfy him self/ her self t hat t he pr ice and t he condit ion of t he Pr oper t y ar e accept able. "

D. VA GUARANTEED FI NANCI NG: A VA guar ant eed loan of not less t han $

( ex cluding any financed Funding Fee) , am or t izable m ont hly for not less t han

y ear s,

w it h int er est not t o ex ceed

% per annum for t he fir st

y ear ( s) of t he loan

w it h Adj ust ed Or iginat ion Char ges as show n on Buy er ’s Good Fait h Est im at e for t he loan not

t o ex ceed

% of t he loan .

VA NOTI CE TO BUYER: " I t is ex pr essly agr eed t hat , not w it hst anding any ot her pr ov isions of

t his cont r act ,

t he Buy er shall not

incur any penalt y by for feit ur e

of ear nest

m oney or

ot her w ise or be obligat ed t o com plet e t he pur chase of t he Pr oper t y descr ibed her ein, if t he

cont r act pur chase pr ice or cost ex ceeds t he r easonable v alue of t he Pr oper t y est ablished by

t he Depar t m ent of Vet er ans Affair s.

The Buy er shall, how ev er , hav e t he pr iv ilege and opt ion

of pr oceeding w it h t he consum m at ion of t his cont r act w it hout r egar d t o t he am ount

of t he

r easonable v alue est ablished by t he Depar t m ent of Vet er ans Affair s. "

I f Buy er elect s t o com plet e t he pur chase at an am ount in excess of

t he r easonable value

est ablished by VA, Buyer shall pay such ex cess am ount in cash fr om a sour ce w hich Buyer

agr ees t o disclose t o t he VA and w hich Buy er r epr esent s w ill not be fr om bor r ow ed funds

ex cept as appr ov ed by VA. I f VA r easonable value of t he Pr oper t y

is less t han

t he Sales

Buy er

Seller

Buy er

Seller

This for m has

been appr ov ed by t he Tex as Real Est at e

Com m ission

for

use w it h

sim ilar ly

appr ov ed or pr om ulgat ed

cont r act for m s.

Such appr ov al r elat es t o t his for m only .

TREC for m s

ar e

int ended

for use

only by t r ained r eal est at e