Our commitment letter fell through, not due to our finances but that the property is log home. Is this legal?
We have followed every detail and met it. Found a local mortgage broker, a local real estate lawyer, and local lender. We received our commitment letter. We also were approved through the VA. Our finances are in order and we are easily able to afford this property. The appraisal for the property was even more than what we agreed to purchase for! SO, long story short, we were supposed to close this week. All the paperwork was in the hands of the underwriter. Suddenly, our mortgage broker (who we have been working with for a month) seems confused and tells us he didn’t know that this was a log frame home. Then the lender tells us that the investor was going to sell the loan, but now will not finance because this is a LOG home! A $ 300,000, built in 1990, in perfect shape, LOG home. What’s the deal? Is it legal for the lender to do this after giving us a commitment letter? There is nothing wrong with the property, OR our finances. Please advise!
Additional info: The underwriter approved it. When it was presented to the investor, it was rejected.