I'm sorry to hear that. My advice would be the following:
First - speak with an attorney. As an agent, I would always recommend that to determine what your recourse is; hopefully your agent has done what he/she needed to do to remove the financing contingency such that your buyer is now in default, where their EMD could be yours to keep. Again, an attorney would help best here. To get your home sold:
1) Try to get the current buyer to look for alternative financing; could be a lender issue. Often times the original buyer can get other type of financing, or VA financing through a different lender. That's the first option and can probably have you closed in 30 days if it works. I would only give them 3 days to show proof that this is completed; I would also follow up directly with their current lender to ask WHY their VA loan was denied at the last minute, and certainly follow up with any subsequent lender to confirm that the issue won't be an issue for this 2nd lender.
2) Simply re-list it, either with your agent or a different agent perhaps, to attract another buyer immediately and once again get it sold. It's likely that much of the money you spent for the repairs is money you would have spent for the 2nd buyer, so that money may not be "wasted" so to speak. It's a good market here in Sterling, and it's likely you'll attract another buyer very quickly.
If I can provide any add'l information, or if you'd like to talk further, please call or email, anytime.
I'm sorry to hear once again, and hope that you're able to get it done soon.
All my best,
Now, you can move left, or you can move right; what is your goal?
If your Goal is to sell the house, you may want to help and work with the Buyers you have:
Have you asked if they have an alternative financing plan, another Lender?
If you gave them an extension and were patient, you might have it sold in another 30 days. But if you start over with another Buyer, you could be there for three months.
Good luck and may God bless