The U.S. Department of Veterans Affairs, known as VA, issued a policy change that now allows payment to buyer brokers on VA loans. They will be subject to certain safeguards, such as the requirement that all buyer-broker fees charged to veterans "must be reasonable and customary within local markets." The circular is effective Aug. 10, 2024, and is valid until rescinded.
The VA also clarified that veterans can still ask sellers to cover these fees which in most cases will be negotiated in the offer to purchase agreement. As the practicality of the settlement of the lawsuit becomes clearer, VA is expected to issue a permanent policy.
This change in policy will protect veterans in situations where there is competition for a particular property and the seller might select another offer because those buyers were paying their own buyer's agent fee. Prior to this policy change, veterans were not allowed to pay, "under any circumstances, be charged a brokerage fee or commission in connection with the services of such individuals."
Both the National Association of REALTORS� and the Mortgage Bankers Association have been lobbying the VA to address this prohibition and are thankful for addressing the issue to keep veterans who want to use their VA benefits to purchase as home.
VA mortgage loans have many benefits and options to structure a home purchase to fit your individual situation. Your real estate professional can help you find the home that fits your needs with affordable financing.
For more information on changes with buyer's agents, download Buyers Agent Guide and contact your agent with any questions you may have.
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Kim Billings
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