The U.S. Department of Veterans Affairs (VA) announced updates today to assist eligible Veterans, active-duty Service members, and surviving spouses using VA-guaranteed home loan benefits in remaining competitive in the housing market. The update allows these individuals to pay for certain real estate buyer-broker fees when purchasing a home.
This change aims to prevent Veterans from being disadvantaged due to a key class-action settlement involving the National Association of REALTORS®, set to take effect later this summer. Previously, Veterans were unable to pay their buyer-broker fees when using their home loan benefits.
The VA home loan program, celebrating its 80th anniversary this month, was established in 1944 as part of the Servicemen’s Readjustment Act, also known as the “G.I. Bill of Rights.” To date, the program has facilitated over 28 million loans for Veterans. Last year alone, more than 400,000 home loans were obtained through this program by Veterans.
“We always want to put Veterans and their families in the best possible position to buy the homes they want, and that’s what this update is all about,” said Under Secretary for Benefits Joshua Jacobs. “Veterans using VA home loan benefits can now pay reasonable and customary amounts for certain charges — including commissions and other broker-related fees — thus ensuring that they remain competitive in the rapidly changing housing market.”
The temporary measures are intended to protect Veterans from negative impacts resulting from the class-action settlement. The VA will continue monitoring how the settlement affects the brokerage market and plans to pursue rulemaking if necessary.
Veterans are encouraged by the VA to negotiate their buyer-broker fees actively. Additionally, Veteran home-buyers can still request sellers to cover these fees at closing, a practice permissible under VA’s rules. All buyer-broker fees charged must be reasonable and customary within local markets.
As changes occur in the real estate market landscape, including new models of realtor commissions that may emerge, the VA will continue monitoring these developments with an aim to lower costs, boost competition, and increase pathways to home ownership.
For more details on this update and its impacts, visit the FAQ section in VA News and Circulars: Calendar Years 2021 to Present – VA Home Loans. Additional information on the VA Home Loan Program is available through various links provided by the department.
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