The Department of Veterans Affairs (VA) announced on Tuesday a temporary policy change allowing VA home buyers to pay their real estate agents directly. This move aims to determine if a formal rulemaking process is needed and offers relief to VA home buyers. The National Association of REALTORS® (NAR) has been advocating for this change to support VA buyers who faced hardships due to a previous rule prohibiting them from paying brokerage fees or commissions for real estate services.
Under the new policy, eligible veterans, active-duty service members, and surviving spouses using VA home loan benefits can pay for certain real estate buyer broker fees. This update is intended to promote access to homeownership for veterans. NAR Chief Advocacy Officer Shannon McGahn emphasized that lifting this prohibition ensures veterans can compete in a tight housing market and access professional representation.
The VA home loan guaranty program is a crucial tool for military veterans, offering a centralized, affordable, and accessible way to purchase homes without a down payment. NAR President Kevin Sears praised the VA for revising the policy, noting that it now allows veterans the same advantages as other buyers.
The VA and NAR will continue monitoring the homebuying market as these changes take effect on August 17. They encourage veterans to negotiate buyer broker fees with their real estate professionals and still have the option to ask sellers to cover these fees at closing.