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VA Home Loan Policy Update: Veterans Can Now Pay Buyer Agent Fees

Updated: Jun 26

Veterans Can Now Pay Buyer Agent Fees

What Is the New VA Loan Policy Update for Military Homebuyers?

In a significant change benefiting thousands of military homebuyers, the U.S. Department of Veterans Affairs (VA) has temporarily lifted the restriction that prevented VA loan users from directly paying their real estate agents. This VA loan policy update aims to make the homebuying process more equitable for veterans, active-duty service members, and surviving spouses.


Previously, VA loan rules prohibited buyers from paying real estate agent commissions, which often left them without professional representation in competitive housing markets. That rule is now temporarily paused—pending review for permanent adoption.


Why Did the VA Remove the Real Estate Agent Fee Ban?

The move comes after significant advocacy from the National Association of REALTORS® (NAR), which argued that the outdated rule unfairly restricted military buyers. According to NAR, the prohibition on “brokerage fees or commissions” left many veterans without access to professional buyer representation, putting them at a disadvantage in hot markets.


“NAR launched an all-hands advocacy effort,” said Shannon McGahn, NAR Chief Advocacy Officer. “Without this change, thousands of veteran buyers could have been denied access to professional representation in pursuit of the American Dream.”


How Does This Change Benefit Veteran Homebuyers?

Thanks to the VA loan policy update, military borrowers using VA home loan benefits can now:

  • Negotiate buyer broker fees directly with their agents

  • Choose to pay these fees themselves if sellers decline to cover them

  • Access the same representation as conventional buyers in competitive markets


This opens new doors for veterans seeking to navigate the complex and often fast-paced real estate market.


What Happens Next with the VA Loan Rule Change?

The temporary rule goes into effect August 17. The VA will observe market impacts before deciding whether to make the policy permanent.


Veterans can still request that sellers cover their buyer agent’s commission at closing. However, if the seller refuses, they now have the option to pay the fee themselves—an option previously denied to them.

“We applaud the VA for revising this policy,” said NAR President Kevin Sears. “Veterans and active-duty service members deserve the same opportunities to achieve homeownership.”


What Should VA Buyers Do Now?

If you're a military homebuyer planning to use a VA home loan, here’s what you should do:

  • Consult with a VA-savvy real estate agent

  • Negotiate buyer agent fees upfront

  • Prepare to either pay the fee yourself or work it into your closing costs

  • Watch for additional updates from the VA and your REALTOR®


Conclusion:This VA loan policy update is a game-changer for military buyers who deserve equal footing in today's housing market. With better access to professional representation, veterans are one step closer to making the American Dream of homeownership a reality.


Source:Adapted from “Veterans Affairs Removes Compensation Hurdle for Military Buyers” via NAR.RealtorWritten by Hunter Letendre with editorial support from ChatGPT by OpenAI.


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