Buying a house in NY state. I am retired/disabled Navy (28 yrs) Work at VA as counselor. VA approved mortgage and set closing date for 6/24/2013 Last thursday they notified me that because I only worked 11 months I had to wait another month before they could approve the mortgage for closing. I am on probation and may not even be made permanent after my probation. The seller is upset and will rent house for the month but wants $3200 up front and I have no guarantee VA will approve mortgage at end of 12 months. Is this sale cancelled because of no financing or can I ask to cancel because of no financing? Also, will my earnest money be refunded?