HUD rejected my WellsFargo Priority Buyer PreApproval Letter!! Why??

[gabrielle]

I'm having an interesting situation. I got preapproved with Wells Fargo (priority buyer) for a 203k loan. I proceeded to bid on an HUD property and submitted my preapp letter with my bid. HUD said they cant take it becuase it does not specify on the page what kind of loan i'm getting. All my letter states is my name, the amount approved for, the expiry date of the preapp letter and some notes on what I would need to have to make sure i can close. HUD will reject my offer if my loan officer doesnt give a new kind of letter. my loan officer replied that Priority Buyer is the stock letter they give and his legal department forbade him from even making a note on it to indicate its a 203k loan. is HUD being too picky for demanding to have the loan type on the letter or is Wells Fargo being too picky for saying they wont give a different letter type?

[Anonymous]

Same thing happened to me when we were trying to do USDA. My pre-approval stated we were approved for $135k, etc. but nowhere did it say USDA loan, so they rejected it. My mortgage company quickly put USDA on it and everything was honky dory.

[gabrielle]

Funny thing is, Wells Fargo has refused to add 203k on it. Heck, the LO is saying that he's not going to risk his job by adding it, claims its illegal, etc. its turning into quite a fiasco

[incognitony]

I really think they need to change the name to Diseased Fargo.