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FHA Amendatory Clause

An FHA Amendatory Clause states a purchaser can cancel a transaction, without a loss, if the value is less than the sales price. A customer may be asked to sign an Amendatory Clause as part of the sale if the customer has not been informed of the property’s appraised value by receiving a copy of the HUD-92800.5B (Conditional Commitment/DE Statement of Appraised Value or VA-CRV) before signing the sales contract. The presence of the clause is required on many FHA purchase transactions, and the amount inserted in the amendatory clause is the sales price stated in the sales contract.

Avoid delays in processing your application

For all documents you’re asked to provide:

  • Make sure the copies you send are legible.
  • Do not include documents that have been altered with correction fluid or by other means.
  • Submit the entire requested document and include all pages (even blank ones).