Better Homeowners
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VA Allows Buyer-paid Broker Fees - 11/13/2024

The U.S. Department of Veterans Affairs, known as VA, issued a policy change that now allows payment to buyer brokers on VA loans.  They will be subject to certain safeguards, such as the requirement that all buyer-broker fees charged to veterans "must be reasonable and customary within local markets."  The circular is effective Aug. 10, 2024, and is valid until rescinded.

The VA also clarified that veterans can still ask sellers to cover these fees which in most cases will be negotiated in the offer to purchase agreement.  As the practicality of the settlement of the lawsuit becomes clearer, VA is expected to issue a permanent policy.

This change in policy will protect veterans in situations where there is competition for a particular property and the seller might select another offer because those buyers were paying their own buyer's agent fee.  Prior to this policy change, veterans were not allowed to pay, "under any circumstances, be charged a brokerage fee or commission in connection with the services of such individuals."

Both the National Association of REALTORS® and the Mortgage Bankers Association have been lobbying the VA to address this prohibition and are thankful for addressing the issue to keep veterans who want to use their VA benefits to purchase as home.

VA mortgage loans have many benefits and options to structure a home purchase to fit your individual situation.  Your real estate professional can help you find the home that fits your needs with affordable financing.

For more information on changes with buyer's agents, download Buyers Agent Guide and contact your agent with any questions you may have.

 

Jim Brent SRES Realty One Group Gilbert, AZ (480) 262-9071 SA051107000 Professionally...real estate just made sense. My career in real estate began in 1969 working in the civil engineering field in residential & commercial development. During the next four decades I was involved in a wide range of projects throughout the Phoenix Metro area. Some of, the more recognizable projects included Fountain Hills, Lake Havasu City, Walmart and Target, to name a few. In 2008 I made a change and decided to put some of my experience to use as a REALTOR®. I earned my real estate license during the market crash in 2008, and in the first few years I helped my clients, family and friends navigate the pitfalls of the post-crash market. During those critical years as the market slowly recovered, I realized how important it was for them to have someone they could rely on for informed advice and guidance and I have worked diligently to ensure I am qualified to be that advisor. Every client’s situation is unique, and each comes with its own rewards and challenges. As a result, it’s critically important that I bring value, through responsible communication and relevant industry expertise, so that my clients can rely on the rock star service they deserve and expect, whether they’re buying or selling. My wife Rhonda and I currently live in the southeast valley and share a blended family of 5 children and 11 grandchildren. I enjoy good weather (Arizona rocks in the winter & spring), a good movie and classic rock & roll. Music has always been a passion of mine and I’ve spent many years singing and playing in rock and roll bands. I plan to continue until someone says stop. Thankfully, that hasn’t happened yet, so I’ll keep singing. Visit my Website Send a Referral