On June 11, 2024, The Department of Veterans Affairs issued a temporary fix that allows eligible veterans, active duty service members, and surviving spouses to pay certain real estate broker fees when using their VA home loan benefits.

This is a significant change for veterans purchasing homes. 

Under this new policy, home buyers using VA loans will now be allowed to pay their buyer agent fees directly. This marks a shift from the long-standing regulations where these fees could not be included in the VA loan amount. 

Without the change, VA loan home buyers would either pay their agent out of pocket or forgo representation when buying a home. 

In response to the announcement from the VA, Kevin Sears, the President of the National Association of Realtors said,

“The VA’s home loan guaranty is the only program that explicitly bans buyers from directly paying for professional real estate representation. We applaud the VA for revising this policy and allowing veterans and active-duty service members the same advantages as other buyers in a competitive real estate market.We look forward to continuing this conversation and our 1.5 million members stand ready to support the VA in whatever way possible to protect the brave men and women who serve this country and ensure they are given the equal opportunity to achieve the American Dream of homeownership.”

Here are the key points of the announcement:

1.Buyer Agent Fees Can Be Included in VA Loans

Veterans can now include buyer agent fees in the total loan amount, reducing the immediate financial burden of home purchases.

2. Allows Home Buyers to Have Buyer Representation

This change aims to provide veterans with greater flexibility and support in the home buying process, making it easier to navigate the costs associated with purchasing a home.

3. Supports Veteran Homeownership

The policy is part of the VA's efforts to support veteran homeownership by addressing financial barriers and simplifying the process.

4. How Will This Work

 The VA will provide specific guidelines to ensure that veterans and real estate professionals understand how this works. 

This policy change is expected to make home buying more accessible for veterans, aligning with the VA's mission to support those who have served in the military.

The VA's previous policy prohibited veterans from paying brokerage fees or commissions in connection with VA loans, a rule intended to protect them from additional costs. However, in many cases, sellers may pay these fees as a seller subsidy in the real estate transaction. 

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How can we help?

The exclusive buyer agents at HomeBuyer Brokerage specialize in serving home buyers. Please reach out with questions at info@homebuyerbrokerage.com.