Anyone experienced with specific language to use for HUD/Fannie with LOC not contingent upon appraisal?
1,448I have bank approval (Letter Of Credit). Finance is not contingent on the property - I can buy any that I want. What language do I need to add to contracts? Only choices are cash or subject to financing. This is essentially cash transaction, but with a loan on property. I have had several contracts get rejected because of this structure and need help!!!
3 answer(s)
About 10 years ago
As the previous agents stated, there is a spot to check that indicates the contract is not subject to financing approval.
Just be careful. You really want to make sure the house appraises. I don't know what your business plan is for these properties but if you plan on using hard money/cash/line of credit and then refi the property it will have to appraise.
Are you sure this is the reason the offers are getting rejected?
Just be careful. You really want to make sure the house appraises. I don't know what your business plan is for these properties but if you plan on using hard money/cash/line of credit and then refi the property it will have to appraise.
Are you sure this is the reason the offers are getting rejected?
Like (2)
DislikeAbout 10 years ago
Interesting question. I agree with Veronica. I'm curious. Are you using a TREC form and if so what year is on the top right corner?
About 10 years ago
Our TREC Residential Contract 20-11 has credit approval language built into it. so I cannot understand why your offers would be rejected b/c of this, unless the contract form is being filled out incorrectly.
Page one, paragraph 4.A.(2) Credit Approval check box (b) states " This contract is not subject to buyer being approved for financing."
So you simply have to fill out the amount of your FOC and place a check mark in check box (b) in this paragraph 4 section of the contract; paragraph 4.A.(2)(b). and attach your FOC letter.
Easy breezy.
This should not be a problem.
Page one, paragraph 4.A.(2) Credit Approval check box (b) states " This contract is not subject to buyer being approved for financing."
So you simply have to fill out the amount of your FOC and place a check mark in check box (b) in this paragraph 4 section of the contract; paragraph 4.A.(2)(b). and attach your FOC letter.
Easy breezy.
This should not be a problem.
Disclaimer: Answers provided are just opinions and should not be accepted as advice.
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