VA will Allow Veterans to Pay Broker Commissions
The U.S. Department of Veterans Affairs (VA) has introduced temporary rules allowing veteran buyers to pay their buyer broker fees. This change, effective this summer, aims to maintain competitiveness for veteran buyers amid evolving real estate commission structures. Previously, veterans were prohibited from paying these fees, potentially disadvantaging them in the market. The VA now permits veterans, active-duty service members, and surviving spouses to cover these fees, although they cannot be included in the loan amount.
Key Points of the New Rules:
Veterans are encouraged to negotiate broker fees directly, though sellers can still cover these costs.
This rule is a temporary adjustment in response to recent real estate market changes. Non-Financed Commissions: Commission payments by veterans cannot be financed through VA loans.
The National Association of Realtors (NAR) lobbied for this change, emphasizing fairness and competitiveness for veteran buyers.
August 10th, 2024
Check out FHA stance on NAR Settlement.
Impact of NAR Settlement on VA Loan Rules
The NAR settlement , which removes offers of compensation from multiple listing services and requires signed buyer representation agreements, prompted this VA policy update. These industry shifts could lead to fewer sellers paying buyer broker commissions, making it crucial for veterans to have the option to pay their agents directly.
Support from NAR
NAR President Kevin Sears praised the VA's decision, highlighting the need for veterans to have equal opportunities in a competitive market. This change aligns with broader industry trends, ensuring veterans can secure professional real estate representation without disadvantage.
For More Information
For more details on the updated rules, visit the VA's official announcement.
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