At Armenta Realty, we're committed to keeping our clients informed about the latest developments in real estate. A significant update has emerged from the Department of Veterans Affairs (VA) that directly impacts veteran home buyers. The VA has temporarily lifted its ban on buyers directly compensating their real estate agents, a move that aims to to make sure VA buyers aren't disadvantaged in the marketplace when the National Association of Realtors (NARs) settlement becomes effective later this summer.
The Change and Its Significance
Previously, VA policy prohibited buyers from directly compensating their agents, which put veteran home buyers at a disadvantage compared to non-VA buyers who had more flexibility in arranging professional representation. Recognizing this issue, thousands of NAR members advocated in Washington, D.C., urging the VA to make a change. The result is a temporary policy allowing VA buyers to directly compensate their buyer brokers.
Another great thing is VA buyers can also still ask sellers to pay this fee at closing. Fortunately having a seller pay the buyer's agent commission doesn't count against the VA's 4% cap on seller concessions.
Ongoing Efforts for a Permanent Solution
While this temporary policy is a significant victory, the fight isn't over. NARs continues to work toward a permanent solution. Last month, they successfully included language in a manager's amendment to the House Appropriations bill. This amendment directs the VA to assess whether the original policy negatively impacts veteran home buyers. NARs is also preparing to send a letter to the House VA Economic Opportunity Subcommittee, urging members to advance legislation that ensures VA policies do not disadvantage veterans.
What This Means for You
At Armenta Realty, we understand how important professional representation is in the home-buying process. This temporary policy ensures that veteran home buyers can access the same level of professional support as other buyers. Our team is here to help you navigate these changes and take full advantage of the benefits available to you through VA loans.
For more information or to start your home buying journey with Armenta Realty, contact us today. We're dedicated to helping veterans and their families find their dream homes with the best possible support and financing options.
