FHA-VA Endorsement

Subparagraph (G) is FHA-VA endorsement language required to process the mortgage application for either of these two mortgages. The only necessary item for the Buyer to include is the Purchase Price as stated in paragraph 2.

HUD Notice to Purchasers

Subparagraph (H) is the Buyer’s acknowledgement HUD Notice ”For Your Protection: Get A Home Inspection” was received. Lenders are required to provide this notice to the Buyer getting a FHA backed mortgage before signing the Agreement. Also, ”Buyer understands that FHA will not perform a home inspection nor guarantee the price or condition of the Property.”

The Appraiser for any loan works for the lender. When the appraiser for a FHA backed loan visits the Property there are several items that must be “inspected” in order for the lender to satisfy the FHA requirements. The reason for the HUD notice is to alert Buyers the FHA “inspection” is not a home inspection. FHA requirements include such things as peeling paint especially if the home was built before 1978.

Certification

Subparagraph (I) ”We the undersigned, Seller and Buyer party to this transaction each certify that the terms of this contract for purchase are true to the best of our knowledge and belief, and that any other agreement entered into by any of these parties in connection with this transaction is attached to this Agreement.” The formal signed certification will be provided by the lender as part of the loan process for both the FHA and VA backed loans.

Return From FHA-VA Endorsement To Part 2 – Mortgage Contingency