NAR’s advocacy results in a significant victory for military homebuyers.
The Department of Veterans Affairs (VA) announced a temporary policy on Tuesday that permits VA homebuyers to directly compensate their real estate agents. This change may lead to a formal rulemaking process depending on further evaluation.
This adjustment provides much-needed support for VA homebuyers, an effort the National Association of REALTORS® (NAR) has been vigorously advocating for. Earlier this year, NAR initiated a comprehensive campaign to amend the previous rule, which restricted VA borrowers from paying real estate professionals a brokerage fee or commission. The old rule posed challenges for VA buyers, which NAR aimed to resolve through a proposed settlement agreement.
With the new temporary policy, “eligible veterans, active-duty service members, and surviving spouses using their VA home loan benefits can pay for certain real estate buyer broker fees when purchasing a home,” the VA stated. This update is designed to ensure VA programs continue to facilitate homeownership access for veterans.
Housing for veterans remains a primary advocacy focus for NAR. “NAR launched an extensive advocacy campaign, engaging with VA officials, lawmakers, and industry partners to ensure the prohibition was lifted,” said Shannon McGahn, NAR Chief Advocacy Officer. “Without this change, many veteran buyers could miss out on professional representation, hindering their pursuit of homeownership. This step ensures veterans can compete equally in a competitive housing market. We commend the VA for swiftly addressing this issue.”
The VA home loan guaranty program is a crucial tool for military veterans, offering a centralized, affordable method for purchasing homes with no down payment as a benefit for their service. It was the only program that explicitly banned buyers from paying for professional real estate representation directly, as noted by NAR President Kevin Sears.
“We appreciate the VA for updating this policy, allowing veterans and active-duty service members to enjoy the same benefits as other buyers in the real estate market,” Sears said. “We are committed to continuing this dialogue and supporting the VA to ensure that those who serve our country have equal opportunities to achieve homeownership.”
Both the VA and NAR will monitor the evolving homebuying market as these practice changes take effect on August 17 and will provide updates as needed. The VA encourages veterans to negotiate buyer broker fees with their real estate professionals, and VA buyers can still request that sellers cover the buyer broker’s compensation at closing.