Dear Jim,
My family and I were buying a home with a VA mortgage, we made and offer it was accepted, we had an inspection, we had a VA appraisal and that was all so great, we did everything that was asked, we did not renew our lease, we were ready for the move our first home, took me 52 yr I have been married for 28yrs, 3 kids , we were ready to leave and move to a beautiful home and we started packing. So excited 3 weeks before closing I get a call from my lender telling me my VA mortgage denied, due to a UNDER HONORABLE DISCHARGE.
We as a family were devastated, my wife kept reading and found out that with under honorable discharge you still qualify for a COE. I also know that my under honorable discharge is wrong , but I am not going to dispute that, it would take to long, maybe in the future, but I don't understand I see my doctors at the VA and i have no problem ,so why is there a problem with my VA loan mortgage.
Soon we will be homeless, i did not renew my lease, gave landlord notice, I did 10yrs for my Country, I feel like such a loser I feel like I left my family down, at this point I feel like jumping from the tallest bridge. I was looking for a fax number For you for i could send you my paper work, could not find one. please anything you can do my family and i beg you all I need is a COE certificate,how can we do this can you help me get a COE, my understanding i can get one, because it feels like my lender lost all hope ,i can't give up,please help me fight this battle, so we can close on this house, please.
Reply:
The law is clear that your discharge be under "other than dishonorable conditions." This is not the same as a "dishonorable discharge."
Please review http://benefits.va.gov/HOMELOANS/purchaseco_eligibility.asp
VA is not required to offer home loan guarantees to any veteran with a discharge that is other than honorable. VA makes a decision when you apply whether or not you have earned the right to a home loan...or any other benefit. They will consider the circumstances of your OTH discharge and make a decision.
Your health care is a different matter. VA can offer you health care and not offer you a home loan benefit. You are fortunate that you have health care provided by VA.
You can appeal the denial. You can write a letter to the VA regional office and tell them why you believe you deserve the home loan benefit even though your discharge is other than honorable. They may, or may not, then allow the benefit. This will take time, maybe as much as a year or more.
The appeal is the only thing you can do. There is nothing else that can be done. You have to write the appeal yourself, nobody can or will do it for you. If you don't appeal, the decision will stand as is and nothing else will happen.
I'm sorry to hear that this has happened to you. However, most veterans apply for the COE a long time before they need it so that any wrinkles can be ironed out in advance. I have to think you should have known that with a other than honorable discharge, you should have guessed there may be problems.
Your only choice is to write an appeal letter and ask the VA to reconsider.