Financing Addendum in Florida Real Estate
A financing addendum supplements a Florida purchase contract by specifying the buyer's mortgage financing terms and providing a contingency that protects the buyer if financing cannot be obtained.
Key Terms
- Loan type: Conventional, FHA, VA, or other
- Loan amount: The financing amount needed
- Interest rate cap: Maximum rate the buyer will accept
- Loan term: Duration of the mortgage (15, 20, 30 years)
- Commitment deadline: Date by which the buyer must obtain a loan commitment
- Cancellation rights: Buyer's options if financing is denied
If Financing Falls Through
- Extend: Negotiate a deadline extension with the seller
- Cancel: Terminate the contract and receive earnest money refund
- Waive: Proceed without the financing contingency (buyer assumes risk)
- Notice: Written notice required under FAR/BAR contract
Cash Purchases
Cash buyers do not need a financing addendum. Cash offers are typically more attractive to sellers because they eliminate financing risk and enable faster closings.
Related Terms
- Contract — The purchase agreement modified by the addendum
- Earnest Money — Protected by the financing contingency
- Closing — Where financing is finalized
Barnes Walker Title Services
Barnes Walker Title closes financed and cash transactions throughout Florida, ensuring compliance with all lender and contract requirements. Submit a title inquiry for assistance.
Reviewed by the attorneys at Barnes Walker, Goethe, Shea & Robinson, PLLC