A mother of two submitted an offer for $500,000 on a Residential Purchase Agreement and removed the Appraisal Contingency, it was accepted by the middle aged man and the mother opened escrow with a 1% Ernest Money Deposit (Initial Deposit). The single mom was approved for an FHA loan for up to $525,000 and only had enough money to cover the 3.5% down payment and closing costs. The home appraised for $450,000 and the single mother of two could not afford to move forward with the purchase. Can the Buyer legally cancel the agreement? If the mother of two was Hispanic and had previously served in the army, how would this change the situation?