I am the seller and the buyers applied with Cornerstone Home Lending, in XXXX. We were scheduled to close on XXXX/XXXX/16. We received n notice buyers were approved subject to final underwriting approval. A couple of days prior to closing the buyers wanted to back out due to fact that they could not run a small day care out of home. Closing papers were drawn on XX/XX/XXXX and I went to closing and signed. On XX/XX/XXXX 5 days after closing Cornerstone issued a statement of denial for income and now we can not get back our earnest. We do n't believe it 's true. Why would lender allow closing papers to be drawn, allow all to think approved when they would have had paystubs, XXXX 's and returns long before closing. I feel they issued the denial letter to help buyers get earnest and because of relationship with realtors who use them on a regular basis. They have not issued a mortgage credit denial on HUD 's website as require for all FHA loans. We spent {$6000.00} on repairs, leased another home, paid movers and now we have XXXX house payment and no money. Lenders should not be allowed to deny a loan after the fact. Not good business and very poor business ethics. XXXX XXXX - XXXXXXXXXXXX 
