can you loose your va loan if you get discharged?

Question

if the owner of a house paid for with a va loan gets discharged because he stops going to drill can he loose the loan? he is in the reserves and has missed several months.

Answer 1

In his case, he will be dishonorably discharged, and yes, he will lose the eligibility.

Losing your VA eligibility is a violation of the terms of a VA loan, and the lender has the right to place PMI on the loan, force you to refinance, or sell, regardless of payment history.

Tell him that he needs to refinance ASAP.

What a pathetic individual that is too lazy to go to drill once a month.

Answer 2

Yes, he can lose the loan. VA loans are for armed forces personnel only. Since he is discharged, he is no longer an employee with the Reserve's. Therefore, he doesnt get to keep a loan with them. I would tell him to look over his loan agreement with the VA. In it, they would put a paragraph about how the loan becomes void, such as if he quits or gets discharged from the Reserves.

He can also call the VA's 800 number which is 1-800-827-1000.

As far as what they will do, I am not sure. They may give him a chance to refinance through another company, they may foreclose on the loan and take the house back, or do something else. I am not sure.

Answer 3

Yes he voided his contract with the US government, in which case they have no reason to continue their contract with him. Most likely will be a dishonorable discharge for AWOL. I used to process these in Ft Ord. All benefits are discharged for failure to meet contractual obligations. As a veteran that has served with honor, might I state my opinion that he is a disgrace to the uniform, and on a personal note, with no offense to you, am ashamed of his actions, and will applaud when the loan is taken away. Sorry this disgusts me using the privileges that have been earned by countless men and women in defense of their country and then walking away from the responsibility after getting those benefits.