Advice requested. Earnest money at risk?

[Zackery Martinez]

Hi everyone, looking into buying a property (as a personal residence), I received this counteroffer around an hour ago. They have requested multiple changes to the original offer that worry me.

1) Termite clearance to be removed

2) Remove contingencies: Inspection-Day 5, Appraisal-Day 12, Loan-Day 12

I’m wondering if either of these are red flags to anybody with experience on the matter.

I’m mainly concerned with the loan contingency removal with the appraisal contingency removal as well. If I put down earnest money, does the removal of the loan contingency mean they can keep my earnest deposit if the loan doesn’t get accepted or if the appraisal falls short? This is in Southern California (expensive as all heck market) and would be a set back that would put me back YEARS. The wording on the document says “NO LOAN CONTINGENCY: Obtaining any loan specified above is NOT a contingency of this Agreement. If Buyer does not obtain the loan and as a result does not purchase the Property, Seller may be entitled to Buyer’s deposit or other legal remedies.”

Does anybody know for sure? The counteroffer expires tomorrow at 5PM PST… Any knowledgeable advice would be very welcome. Thanks to anybody who responds.