Am I a victim of predatory lending?

[Ryan Cox]

I am in the process of buying a condo. At the moment I am under contract with both my realtor and seller. Today I gave checks for both the Earnest money to the Title company and Option money to the Seller. This Thursday I am scheduled to do my inspection.

The thing about is that I am not sure if I trust my Lender.

When I originally got pre-qualified/pre-approved with the Lender back in November 2019. I signed up for a 5% Down Payment Assistance Program and MCC Mortgage Credit Certificate Program with TSAHC here in Texas. I’ve already taken the course and am good to go.

Well, according to my Lender they're no longer affiliated with TSAHC because they said TSAHC is having issue and may even scuttle the bond program for DPA. So, my lender moved me to TDHCA for the 5% DPA but notified me that the MCC cannot be used with a 5% DPA while using a Conventional loan with a fixed rate. It only applies with the 4% DPA FHA loan. They are however going to try and find me another

Another thing is that my mortgage rate would be 4.5%, but the lender does not want to lock it in for another 2 weeks so as to give US Bank (the people they sell the loans to) 45 days is what they said to buy my loan. Now I haven’t signed any loan contract with the lender yet. It is however arousing my mistrust and red flags seem to be going up.

I am adamant about doing the 5% DPA, MCC and locking in the 4.5% rate. And I absolutely want to buy the condo. However, I am thinking of dropping the lender or even backing out of the deal altogether.

Can anyone please give me any advice? Am I overacting here?