Can an FHA Clause Form be signed electronically?

Yes. Electronic signatures are valid under the federal ESIGN Act (15 U.S.C. ch. 96, 2000) and UETA in most states, provided intent, consent, attribution, and record retention requirements are met.

Is notarization required for the form?

Notarization is typically required for deeds and some acknowledgements, but requirements depend on the document type and state. Check the state notary rules or title company requirements before signing.

What if the lender rejects the clause language?

Review lender comments, revise the clause to align with FHA and lender requirements, and obtain re-execution. Keep a clear audit trail of revisions and signings to document consent.

How should repair evidence be submitted?

Attach contractor invoices, receipts, permits, and re-inspection reports to the clause or closing package; provide digital copies to lender and title for underwriting and clearance.

Can remote online notarization (RON) be used?

RON availability varies by state. Where permitted, RON can be used if it meets state RON rules (identity proofing, audio-video recording, retention). Verify state notary guidance.

Who should keep the executed form?

Each party should retain a copy. Title companies and lenders typically keep originals in closing files; retain digital copies for the retention period relevant to tax and regulatory rules.

FHA Clause Form

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FHA DISCLOSURES
AMENDATORY CLAUSE / REAL ESTATE CERTIFICATION

Buyer(s)

Seller(s)

Property Address :

Date of Agreement:

File No.:

FHA AMENDATORY CLAUSE

It is expressly agreed that notwithstanding any other provisions of this contract, the purchaser shall not be obligated to complete the purchase of the property described herein or to incur any penalty by forfeiture of earnest money deposits or otherwise unless the purchaser has been given in accordance with HUD/FHA or VA requirements a written statement by the Federal Housing Commissioner, Department of Veterans Affairs, or a Direct Endorsement lender setting forth the appraised value of the property of not less than $ . The purchaser shall have the privilege and option of proceeding with consummation of the contract without regard to the amount of the appraised valuation. The appraised valuation is arrived at to determine the maximum mortgage the Department of Housing and Urban Development will insure. HUD does not warrant the value nor the condition of the property. The purchaser should satisfy himself/herself that the price and condition of the property are acceptable.

Note: The dollar amount to be inserted in the amendatory clause is the sales price as stated in the contract. If the borrower and seller agree to adjust the sales price in response to an appraised value that is less than the sales price, a new amendatory clause is not required. However, the loan application package must include the original sales contract with the same price as shown on the amendatory clause, along with the revised or amended sales contract.

REAL ESTATE CERTIFICATION

We, the borrower, seller, and the selling real estate agent or broker involved in the sales transaction certify by our signatures below that the terms and conditions of the sales contract are true to the best of our knowledge and belief, and that any other agreement entered into by any of these parties in connection with this real estate transaction is part of, or attached to, the sales agreement.

WARNING: Our signatures above indicate that we fully understand that it is a Federal Crime punishable by fine, imprisonment or both to knowingly make any false statements concerning any of the above facts as applicable under the provision of Title 18, United States Code, Section 1012 and 1014.

What the FHA Clause Form Is and when it appears

The FHA Clause Form is a contractual provision used in real estate transactions involving Federal Housing Administration (FHA) financing. It documents contingencies, required disclosures, or lender-related conditions tied to FHA-insured loans and is typically attached to purchase agreements or addenda. The form helps ensure compliance with HUD program requirements, clarifies financing conditions for buyer and seller, and records critical dates and responsibilities tied to FHA appraisal, repairs, mortgage insurance, and loan approval.

Why including an FHA Clause Form matters

Using a clear FHA Clause Form reduces closing delays, protects lender and borrower expectations, and documents FHA-specific contingencies such as appraisal results, required repairs, and mortgage insurance obligations under HUD programs.

Who prepares, reviews, and signs an FHA Clause Form

Typical parties who interact with an FHA Clause Form include buyers using FHA loans, sellers, listing and buyer agents, mortgage lenders and underwriters, and closing agents.

Real estate agents and brokers: Prepare the form for inclusion with the purchase contract and explain FHA-specific contingencies to clients.
Mortgage lenders and underwriters: Review clause language to ensure conformity with FHA case processing, appraisal and mortgage insurance requirements.
Title and closing agents: Verify clause execution, attachments, and any notarization requirements before funding and recording.

Coordination among these parties reduces the risk of last-minute contract disputes and supports timely lender clearances and closing.

Core elements that should appear on a professional FHA Clause Form

A well-drafted FHA Clause Form clearly identifies parties, describes the FHA contingency, states deadlines, and ties obligations to FHA appraisal and repair requirements. It should also address mortgage insurance, lender approval, and allocation of repair responsibility.

Parties

Full legal names of buyer(s), seller(s), and lender; include company names for corporate parties.

FHA Contingency

Explicit description of the FHA-specific condition (for example, contingent on FHA appraisal approval and required repairs).

Deadlines

Clear dates for appraisal, repair completion, re-inspection, loan approval, and any cure periods.

Repair Responsibility

Allocation of who completes and pays for repairs required by the FHA appraiser or lender.

Mortgage Insurance

Reference to FHA mortgage insurance requirement and who will be responsible for related premiums.

Signatures

Signature blocks for all parties with printed names and dates; include notary or witness lines if state law requires.

Step-by-step: completing an FHA Clause Form accurately

Follow a consistent sequence when preparing and executing the form to reduce lender rejections and closing delays.

01

Gather documents: Collect purchase contract, loan application, seller disclosures, and prior addenda for reference.
02

Draft clause: Insert precise contingency language tied to FHA appraisal and repair obligations.
03

Confirm deadlines: Set appraisal, repair, and approval dates consistent with the loan commitment schedule.
04

Execute properly: Obtain required signatures, initials, and notarization if applicable; keep copies for lender and title.

Typical process flow from form completion to loan clearance

The FHA Clause Form is routed among parties, triggers appraisal/repairs, and supports lender underwriting prior to closing.

Prepare and attach: Seller or agent attaches the FHA Clause Form to the purchase agreement and shares with lender.
Appraisal review: Appraiser identifies required repairs or conditions for FHA compliance.
Repair or credit: Parties agree who completes repairs or offers a seller credit per the clause terms.
Underwriter clearance: Lender reviews evidence of repairs or credits and issues final loan approval.

Configuring an online FHA Clause workflow

Set up a digital workflow that routes the form to each signer in order and captures authentication and audit data.

Field	Configuration
Signature order	Sequential signing: buyer → seller → lender
Authentication	Email link and optional SMS code for identity verification
Attachments	Include appraisal report, repair invoices, and contractor receipts
Audit trail	Enable IP, timestamp, and action logs for each signer

Digital signing essentials and compatibility

Use platforms that support PDF and Word files, create tamper-evident signed records, and meet U.S. legal standards for eSignatures.

File formats: PDF | DOCX | HTML supported
Integrations: CRM and storage integrations such as Salesforce, NetSuite, and Google Workspace
Security: TLS in transit and AES-256 at rest

Ensure the eSignature provider follows ESIGN and UETA standards, offers a detailed audit trail, and can produce a court-admissible record if needed.

Consequences of incomplete or incorrect FHA Clause Forms

Closing Delays: Missing or inconsistent clause language can delay lender clear-to-close and extend closing timelines

Loan Denial: Failure to meet FHA appraisal or repair conditions may cause lender to decline FHA financing

Title Issues: Improper attachments or unsigned pages can create title exceptions or recording problems

Financial Exposure: Unresolved repair responsibilities can result in post-closing claims or escrow disputes

Regulatory Noncompliance: Nonconformity with HUD or FHA program rules may affect mortgage insurance eligibility

Document Rejection: Lenders often return incorrect forms, creating additional administrative costs

Common deadlines tied to FHA contingencies

FHA-related deadlines are time-sensitive and usually defined by the purchase contract, lender timelines, and FHA case processing rules.

Appraisal Ordered:

Typically within 7–14 days of loan application submission

Appraisal Response:

Seller must address required repairs within contract-specified cure period

Re-inspection:

Completed after repairs, often within 7 days of repair completion

Loan Approval:

Clear-to-close timing varies; coordinate with lender for exact deadline

Recording:

Title and recording typically occur at or immediately after closing

Practical tips to avoid FHA Clause Form problems

Adopt consistent practices to reduce errors and lender rejections when using FHA Clause Forms.

Use precise language

Avoid vague terms; specify actions, responsible parties, and exact deadlines to reduce disputes.

Coordinate with lender

Confirm lender requirements for repairs, re-inspections, and acceptable credits before finalizing the clause.

Document repairs

Retain invoices, permits, and contractor warranties to prove compliance with appraiser requirements.

Maintain version control

Track revisions and ensure the signed version matches any lender attachments or exhibits.

Comparing typical eSignature provider pricing and capabilities for FHA Clause workflows

When choosing an eSignature provider for FHA forms, compare pricing, trial availability, bulk send, audit trail, HIPAA support, and any envelope or invite caps.

	signNow	DocuSign	Adobe Sign	PandaDoc	HelloSign
Starting Price	$8/user/mo	$15/user/mo	$14/user/mo	$19/user/mo	$15/user/mo
Free Trial	7-day free trial, no card	Varies by vendor	Varies by vendor	Varies by vendor	Varies by vendor
Bulk Send	Yes (Premium tier)	Varies by plan	Varies by plan	Varies by plan	Varies by plan
Audit Trail	Yes	Yes	Yes	Yes	Yes
HIPAA Compliant	Yes	Yes	Yes	No	No
Envelope Cap	No cap	100 envelopes/user/year limit	Varies	Varies	Varies

Frequently asked questions about the FHA Clause Form

Answers to common questions about completion, notarization, electronic signing, and lender review of FHA Clause Forms.

Need help? Contact support

Can an FHA Clause Form be signed electronically?
Yes. Electronic signatures are valid under the federal ESIGN Act (15 U.S.C. ch. 96, 2000) and UETA in most states, provided intent, consent, attribution, and record retention requirements are met.
Is notarization required for the form?
Notarization is typically required for deeds and some acknowledgements, but requirements depend on the document type and state. Check the state notary rules or title company requirements before signing.
What if the lender rejects the clause language?
Review lender comments, revise the clause to align with FHA and lender requirements, and obtain re-execution. Keep a clear audit trail of revisions and signings to document consent.
How should repair evidence be submitted?
Attach contractor invoices, receipts, permits, and re-inspection reports to the clause or closing package; provide digital copies to lender and title for underwriting and clearance.
Can remote online notarization (RON) be used?
RON availability varies by state. Where permitted, RON can be used if it meets state RON rules (identity proofing, audio-video recording, retention). Verify state notary guidance.
Who should keep the executed form?
Each party should retain a copy. Title companies and lenders typically keep originals in closing files; retain digital copies for the retention period relevant to tax and regulatory rules.

Common pitfalls to avoid with FHA Clause Forms

Using vague contingency language that fails to specify repair scope or deadlines, leading to disputes and lender pushback.
Mismatched names or dates between the clause and loan documents, which can delay underwriting or title clearance.
Failing to attach required appraisal or repair documentation when submitting to the lender for clearance.
Attempting to use an unsupported eSignature method without confirming lender and state acceptance for the specific document.

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