Fannie Mae home path addendum

[Megan G.]

Hi, we are purchasing a fannie mae homepath property. we agreed on a price including our estimate of what we would need to fix the house to the fha 203k standards. they want us to sign the agreement stating we will obtain financing in the amount of the agreed price minus the down payment (excluding the cost of work that will be needed--they know their is mold so it will def. need fixing)

the financing clause states if we cannot get financing in the purchase price amount we can cancel. in the event we change the financing(which we will have to do as there is mold that needs fixing) they can require that we renegotiate the terms of the agreement and/or they can terminate the agreement.

is there something shady behind this? i dont know if this is standard. i know that the listing agent told our agent he didnt think 30k(repair estimate) was enough to cover what was wrong. should we be worried about this deal? i have seen some crazy things online in regards to homepath properties. our agent doesnt know a whole lot and has yet to give us any insight. thanks for any help and if anything doesnt make sense i can explain further.

[Wayne Brooks]

Your offer needs to specifically state you trying to buy with a 203k loan, with purchase price and renovation funding sought clearly stated. Anyone wanting you to hide or alter this is not looking out for you. You should be pre approved for the amounts you are seeking before making offers.