George Clements ~ Greenville, SC Real Estate
Paragraph 4 of the Contract For Sale deals with financing. The paragraph looks something like this:
4. FINANCING: The obligation of Purchaser to purchase the Property is contingent upon the Purchaser obtaining a loan in an amount equal to ____% of the purchase price, (this contingency is not applicable unless the preceding blank is completed) of the following type: FHA ____VA____ Conventional____ Other__________________
This paragraph gives the seller an idea of the type of loan the purchaser is going to be getting or if they will be paying in cash. If the transaction were a cash deal than "CASH" would be placed in the blank next to "other." The percentage of purchase price for the loan is determined by subtracting the amount the purchaser is putting down from the sales price in the second paragraph. In most transactions, the conventional loan option is checked.