The third (3rd) party financing addendum can be added to a purchase agreement in order to outline the terms of the buyer’s loan. The third (3rd) party, in this case, would be the bank or financial institution supplying the funds to the purchasing party. Users must indicate whether or not the sale is contingent upon the buyer being able to secure the necessary financing by a specific date. This form contains the following options regarding the type of financing that will be used for the purchase:
- Conventional
- FHA (Federal Housing Administration)
- Reverse Mortgage
- USDA (United States Department of Agriculture)
- VA (Veteran Affairs)
(If the owner is providing the buyer with the needed financing to purchase the property, the parties must instead execute the Owner (Seller) Financing Addendum.)
By Type
Conventional Financing Addendum – Specific to loans that are not insured by the federal government, this Realtor form can be used to layout the terms & conditions of a conventional mortgage.
FHA/VA Financing Addendum – If the buyer is taking advantage of one of these federally-backed loans, they can provide the details within this document.
Reverse Mortgage Financing Addendum – Only available to individuals aged sixty-two (62) years or older, this addition to the purchase agreement can help specify the particulars of a loan that is reliant on the amount of equity the buyer has in their current home.
USDA Financing Addendum – If you live within an eligible area, this addendum enables the sale’s participants to register the information of a mortgage that falls under the guidelines of the United States Department of Agriculture’s home loan program.