VA may withhold home loan from Dallas gay couple over Texas marriage ban

Posted on 11 Dec 2013 at 9:30am

department_of_veterans_affairs_round_stickers-rc853e2f1e5b943d88d67df4ae0b8863c_v9waf_8byvr_512Dallas couple former Army Sgt. Earl Rector and Alan Rodriguez were surprised Tuesday when they were told that the Veterans Affairs Department may not give them a home loan because the office won’t count the income of the non-veteran spouse in states where same-sex marriage isn’t recognized.

The couple sold their home in November and got married later that month in Seattle before signing a contract on a new home. But when they found out they might not get the veterans home loan, their plans of owning the new home became jeopardized.

“We found out yesterday that VA told our lender that they would not guarantee the loan,” Rector told the Marine Corps Times. The notice came eight days before closing, and “after we were pre-approved weeks ago,” he said.

The couple could not immediately be reached for comment.

While the lender is dealing with the VA to ensure the loan is issued to the couple, this isn’t the first instance where a non-marriage-equality state has denied a veterans home loan to a same-sex couple.

The Senate Veterans’ Affairs Committee is currently considering legislation that would order the VA to recognize same-sex couples in every state instead of the state’s definition of marriage.

But in the meantime, the Rector and Rodriguez could face a breach of contract penalty if the loan doesn’t go through.

“The seller is an attorney, which could make our lives difficult,” Rector said.

“Our financing bank is doing everything they can, but the VA approval process has been ambiguous and now appears impossibly complex and arbitrary.”

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