Loan officer mistake delays closing

We are selling our home in Virginia. The loan officer processing the loan for the purchasers of our property took it upon herself to process a conventional loan instead of the FHA loan outlined in the contract. The buyers balked when informed of an additional 2% down payment. The loan company had to start over processing a FHA loan(different appraisal,etc). We were informed 5 days before closing that closing would be pushed back 4 days. Our Realtor stated she was helpless to push the issue.Our reasoning being if the buyer was approved for conventional, the loan company could rush the process on FHA and still make the closing date. We asked if this voided the contract(we have not received the Lender's Letter of approval within the 45 days outlined in the contract)and our Realtor stated it did not void the contract. The contract also states the buyers can only seek other types of financing besides what's in the contract(FHA) if it does not cause the seller to incur additional expense or push back the closing date.It has caused both. Is the contract void if we send notice of intent based on not receiving the approval letter? Can we seek compensation from the buyer's loan company? Was our Realtor being truthful with us?

[HomeGuru]

Unless you know for a fact that you can get $10K more for your property from another Buyer that is able to close within 30 days, just wait out the days and close with this Buyer.