What is the FHA amendatory clause?
It's a required FHA addendum to the purchase contract that lets the buyer cancel and recover earnest money if the FHA appraisal comes in below the contract price. Required on every FHA purchase.
What this actually means.
The clause protects FHA buyers from being forced to close at a price above the appraised value. If the appraisal is low, buyer and seller can renegotiate or the buyer can walk with deposit returned. The clause must be signed before underwriting; it's a routine part of FHA contract paperwork.
Where this can move.
Florida insurance premiums, property tax millage and exemptions, HOA dues, CDD fees, county loan limits, and condo approval status can change the answer.
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Educational only. FHA guidelines, lender overlays, rates, fees, and underwriting requirements can change. Final eligibility depends on full underwriting review. Mortgage Expert, Inc. is not affiliated with HUD, FHA, or any government agency.