Will HUD let you change lenders?

[Carita Yeager]

I have a contract on a HUD home. It's a great deal but, I needed to find a lender that would do 100% purchase/rehab. I finally found one but, they require the contract to be in an LLC, mine is in my own name. Going through all of this, I had to get an extension from HUD (no small feat) and I thought I could use transactional funding to do an A-B, B-C (HUD to me: me to my LLC) and set it up using a proof of funds letter from iflip, and a letter from COGO (lender)

I thought I had done a pretty good job of resolving everyone's concerns.  Now I've learned that iflip will not allow you to use their transactional funding unless the end buyer has no relationship to you.

Now I have found a lender who will do the loan with terms that work for me but, my real estate agent tells me HUD will not allow me to close with a different lender because the extension req letter lists a specific lender. The original contract said I was a cash buyer or getting financing.

Is my agent correct? Is there any way to get around this? It seems a shame to lose the whole deal and over 1k between my EMD and ext. fee all because of these technicalities.

Any advice would be greatly appreciated.  BTW, I've also listed it for sale on Craigslist and emailed it to some cash buyers - just in case.

Carita