VA To Allow Buyer Agent Commission Financing

As most of you know, the Veterans Administration offers our active and retired military up to 100% financing. They will now be offering the option to add the buyer agent commission to that financing package! See the article below. – Deb

UPDATE (6/11/24) — The VA released temporary guidance today that allows Veterans to pay real estate agent commissions when buying a home. The update aims to ensure that VA buyers aren’t disadvantaged in the marketplace when a landmark court settlement takes effect later this summer.

The short-term policy change allows VA buyers to pay their buyer’s agent, which until now had been a cost Veterans weren’t allowed to cover. The fee must be reasonable and customary for the Veteran’s housing market.

VA buyers can also still ask sellers to pay this fee at closing. Having a seller pay the buyer’s agent commission doesn’t count against the VA’s 4% cap on seller concessions.

The policy update takes effect on Aug. 10, which is a week before the proposed National Association of Realtors settlement becomes effective.

The Loan Guaranty Program plans to develop permanent guidance about buyer-broker commissions in the coming months.

For more information, please check our reliable resources!

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