- 1). Obtain a real estate purchase and sale agreement.
- 2). Complete all of the sections of the purchase and sale agreement as you would in a typical real estate transaction.
- 3). Add the 203(k) provision to the purchase and sale agreement. The financing section of the application should say that the borrower has already applied for the 203(k) loan.
- 4). Add contingency language. The financing section should also state that the purchase of the property is contingent upon the borrower receiving approval on the 203(k) loan. The contingency statement should also say that the execution of the purchase is also contingent on the property, borrower or seller meeting any requirements set by HUD under the 203(k) program.
- 5). Write the following statement on the purchase and sale agreement: "The Buyer understands and agrees to include any/all additional repairs that may be required by the lender, appraiser and/or FHA/HUD Consultant."
- 6). Have the buyer and seller sign the contract in all applicable areas.
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