Federal Down payment assistance Grant

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Suzisqueue

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I am a first time home buyer. I applied for a mortgage with my credit union. I found a home offered through Community Development Corp which is a non-profit group that restores homes to help rebuild communities. They had a first-time-home buyers grant available for families within a certain income range, I applied for and was awarded a federal down payment assistance grant to help buy my first home.

Originally I had applied for a Utah housing down payment mortgage that would be done as a second mortgage on top of my FHA loan, but now I had the Federal Grant for the down payment and did not need to use the 2nd mortgage and the CDC would pay the closing costs as well. My lender (America 1st Credit Union) had told me originally that it would take 40 days to do the loan for the purchase, which is a huge amount of time, but we arranged for that in the contract. 40 days came, and they asked for an extension, 47 days came, they asked for another extension. With each of the deadlines they would send me disclosures - tell me they would put it into underwriting and I would have my loan, on and on this goes, two more extensions. I had originally submitted the loan and on the first set of disclosures my interest rate was 3.5, after two weeks it had shot up to 4.5, and they were still telling me there were problems with the loan. Frustrated, I called up and asked to speak to the manager who told me she would handle it herself, she admitted they had never done a loan like that and they didn't know what they were doing and it was a "steep learning curve for them" but they would have it done, I was all out bawling at this point. My deadline for closing is the 12th they get me the loan on the 11th (they had asked for yet another extension but CDC refused), I took it to a CDC agent to look over - and they still did it wrong. Good grief

Luckily, the CDC took some pity on me and I used one of their lender instead and I'll be able to get the home. They got me financed and approved and will expedite the loan.

I'm mad about the whole deal, but missing out on my good interest rate burned me the most because they couldn't admit that they didn't know what they were doing and just kept leading me on. Aside from driving me crazy with stress (I gave notice to my landlord I would be moving so I had to do some real scrambling so I wouldn't end up homeless), on the interest rate probably cost me $17K in the long run.

Could I have any legal recourse?

Thank you!
 
You could sue anyone you choose. You, however, have nothing on which to base a sound case.
 
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