FVA and FVAC (FHA VA AMMENDATORY CLAUSE)
FVA and FVAC forms
RPA 3.D. LOAN(S) – Buyer is to specify which type of loan they are using.
FIRST LOAN: in the amount of ___________. This loan will be conventional financing or __FHA, __VA, __Seller financing (C.A.R. Form SFA), __assumed financing (C.A.R. Form AFA).
- Note that the RPA “defaults” to “conventional” financing, which means 20% down and loan of 80% of Sales Price.
- The other 2 main options for financing are FHA [3.5% down] and VA [either 1% down or sometimes 0% down]
- Seek counsel from Contract Support Manager before considering and other financing options.
FHA/VA:
- For any FHA or VA loan specified in 3D(1), Buyer has 17 (or ___) Days After Acceptance to Deliver to Seller written notice (C.A.R. Form FVA) of any lender-required repairs or costs that Buyer requests Seller to pay for or otherwise correct. Seller has no obligation to pay or satisfy lender requirements unless agreed in writing.
It is recommended NOT to submit a Form FVA as almost every Seller will counter this out of the contract.
- A FHA/VA Amendatory clause (C.A.R. Form FVAC) shall be a part of this Agreement. That means you have to complete this form.
- FVAC is to be signed by Seller, Buyer, Listing Agent & Selling Agent.
SUMMARY
- FVA is NOT required
- FVAC IS required.