Let me first state that I am a Realtor, not an attorney.
My suggestion would be to review your contract and check with your realtor who represented you in this purchase.
If you were not represented, then check over your contract. In a standard offer to purchase, the terms of the conditions under which earnest money is to returned. In a standard offer to purchase, the inability to obtain loan approval is a valid reason to cancel the offer & obtain the refund of the earnest money.
If the developer required you to use that lender, there may be an even stronger case to obtain your refund.
Another option would be to explore other lenders. If you would contact me, I could put you in touch with several excellent lenders that are local, real-live lenders, (not out-of-state, cyberspace lenders) who may be able to assist you.
Keller Williams Realty Greater Cleveland