Sunday, 24 March 2019
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This Old House - Do-it-Yourself

The VA Amendatory Clause – Your Escape Vehicle

Written by Posted On Wednesday, 13 March 2019 11:14
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VA loans offer qualified buyers several benefits that make purchasing a home easier and less risky. Some of the benefits of using a VA loan include an option for no money down, a government insured loan and a property appraisal process that helps ensure the home meets minimum standards.

One of the often overlooked benefits is the VA Amendatory Clause language that is a required modification to typical real estate contracts. The purpose of the clause is to remove some of the risks for loss of earnest money deposits made by the buyer. The clause offers a way to terminate the purchase contract if the properties’ cost exceeds the established (appraised) value.

Since some VA buyers lack the substantial cash reserves that many conventional buyers have, the loss of deposits could severely cripple their attempt to purchase again if a sale falls through.

You may see the VA Amendatory Clause, sometimes called the Escape Clause, presented in several different ways. As long as the clause or addendum follows the language identified by the U.S. Department of Veteran Affairs the buyer is protected.

An example of the clause language can be found at

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