What is the FHA amendatory clause?
The FHA amendatory clause generally protects your right not to complete the purchase or forfeit earnest money solely because the FHA appraised value is below the amount stated in the clause. It is required on many FHA purchases, but HUD provides exceptions.
What this actually means.
If the appraisal is low, the parties may renegotiate and the buyer decides whether to proceed under the contract and clause. HUD identifies exceptions including FHA REO sales and 203(k) mortgages. I check the transaction and required contract documents before you sign; your real-estate agent or attorney should answer contract-law questions.
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.