Appraisal Stips vs. FHA & VA Loans

With an Appraisal Special Stipulation (i.e. Appraisal Gap Stip) if a Buyer is getting an FHA / VA Insured Loan and the appraisal comes in low, may the Buyer still terminate? Watch the video to find out!

Amendatory Clause - FHA & VA Insured Loans:
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 issued 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 or the condition of the property. The purchaser should satisfy himself/herself that the price and condition of the property are acceptable. Source: Department of Housing and Urban Development."

Same for VA Insured Loan.

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[nytianikole]

Is it possible to ensure the appraisal gap by lowering the dollar amount typred into the amendatory clause? What I do to try and solidify that appraisal gap is to lower the figure in the amendatory clause field by the amount of appraisal gap I'm offering. Therefore, if I'm offering a 5K gap up to the purchase price of 250K, I'll write that the appraisal must come in at 245K in the amendatory clause. Therefore the gap of 5K is still good "up to the purchase price" of 250K. That way it's extremely clear. Because if you type 250K in that box, essentially you're negating your special stip by saying that it has to come in at 250K.

[mohammadmainuddin]

Can the Buyer terminate the contract after the FHA loan contingency period and get their EM back even seller agrees with the lower appraisal price?