My process was fine, I am FHA approved, did everything I was told and after the due diligence period expired I was told that the condo HUD approval for my loan was expired, my real estate agent got me an extension already but at today HUD has not approved the condo yet. My mortgage person gave me the option for the conventional loan and said I was pre qualified. If they decline my loan, what recourse do I have? Is it legal that they required the appraisal on my expenses and then figure the condo HUD was expired? And afterwords switch my loan, take a week after the documents were handed out and not hear about my situation yet? Is there a time fame? what if the extension that the seller gave me expires and I lose the condo because the mortgage person is taking so long?