Contracts

Under the Texas One to Four Family Residential Contract, the Third Party Financing Addendum is used when:

AThe seller is financing the sale
BThe buyer is using a conventional, FHA, or VA loan✓ Correct
CThe property is being purchased with cash
DThe buyer is assuming an existing loan

Explanation

The Third Party Financing Addendum is used when the buyer is obtaining new financing from a lender (conventional, FHA, VA, USDA). It allows the buyer to terminate the contract and recover earnest money if financing cannot be obtained.

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