What is the VA amendatory clause?
A VA-required addendum to the purchase contract that lets the buyer walk away from a VA purchase without losing earnest money if the appraised value comes in below the contract price. The seller must sign it for VA to close.
Plain-English explanation
The amendatory clause is a one-page addendum that becomes part of the contract. If the VA Notice of Value comes in low, the buyer can choose to: 1) cancel the contract and recover earnest money; 2) renegotiate price; or 3) bring cash to bridge the gap. The seller's signature on the clause is mandatory. Without it, VA does not insure the loan. Subject to VA guidelines.
What can change the answer?
Property condition against MPRs, repair requirements, Tidewater process, and Reconsideration of Value can change the appraised value and timeline.
Want the real answer for your VA file?
VA guidelines are the rule. Your COE, entitlement, residual income, property, and Florida costs are what decide the actual answer.
More VA questions on Appraisal
Educational only. VA guidelines, lender overlays, rates, fees, and underwriting requirements can change. Final eligibility depends on full underwriting review.