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.
Plain-English explanation
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.
What can change the answer?
Florida insurance premiums, property tax millage and exemptions, HOA dues, CDD fees, county loan limits, and condo approval status can change the answer.
Want the real answer for your file?
FHA guidelines are the rule. Your credit, income, payment, property, and county limit are what decide the actual answer.
More FHA questions on Florida
Educational only. FHA guidelines, lender overlays, rates, fees, and underwriting requirements can change. Final eligibility depends on full underwriting review.