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Can you tell me what state this is in?
1. Was there a financing contingency in the purchase contract that gives you a right to terminate if you can't get financed?
2. Did you notify them that you were applying for a VA loan?
3. Why were you denied the VA loan?
4. Have you tried to obtain other financing from a conventional bank?
5. What state is this in?
6. What reason are they giving for keeping your money and not refunding it to you?