At MORTGAGEinc, we’re dedicated to ensuring our veteran clients stay informed about key updates. On August 10, 2024, the VA announced a temporary policy allowing veterans to directly pay their real estate agent’s commission under certain conditions.

Understanding the New Guidance

– Direct Payment: Veterans can pay their buyer’s agent directly in areas where the seller’s agent cannot list the buyer-agent commission on the MLS.

– Loan Restrictions: The commission cannot be rolled into the VA loan.

– Verification: Lenders must ensure veterans have sufficient cash to cover the agent commission, closing costs, and any down payment.

– Transparency: The buyer’s agent commission must be clearly listed on the Closing Disclosure and the sales contract.

– Appraisal Process: The sales contract, including buyer commission charges, is integral to the appraisal and loan documentation process.

– Seller Payment: Sellers can still pay the buyer’s agent commission, but it is no longer required.

How This Affects You

This policy is designed to help veterans remain competitive in today’s housing market, particularly in response to recent changes involving the National Association of REALTORS® (NAR). While the policy is temporary, the VA plans to develop permanent guidelines as the market adjusts.

Next Steps for Veterans

– Know the Market: Familiarize yourself with typical commission rates in your area.

– Financial Planning: Make sure you have the funds available to cover the commission, as it cannot be financed through your VA loan.

– Partner with Experts: Work with experienced real estate professionals and lenders who understand VA loans.

For personalized guidance or to apply for a VA loan, visit MORTGAGEinc (https://www.mortgage-inc.com/). We’re here to support you every step of the way on your home-buying journey.