VA Loan Update Gives You More Negotiating Power as a Military Homebuyer

Big changes are happening in the real estate world, and the VA wants to ensure you don’t get left behind as an active duty member or veteran homebuyer. That’s why they’ve updated some rules around VA home loans that take effect on August 10, 2024.

The shakeup? You’ll now be permitted to negotiate paying certain real estate fees directly that the VA previously didn’t allow. These are the fees paid to the buyer’s real estate agent, which have traditionally been covered by the seller for VA loans.

So what’s prompting this new flexibility? A recent legal settlement requires the National Association of Realtors to revise how it governs broker compensation models. While the dust is still settling, there are concerns that homebuyers may increasingly get stuck footing the bill for their agent’s fees going forward.

For the VA, that raises a red flag. They don’t want military buyers put at a disadvantage and priced out of homes simply because longstanding fee practices are changing. By letting you take on these fees if needed, it helps ensure your VA loan benefits keep you competitive when making offers.

However, don’t worry – the VA has safeguards in place. Any fees you pay must be reasonable and consistent with going rates in your market. You can still try negotiating for the seller to cover the costs as usual too.

This is just a temporary adjustment for now as the VA monitors impacts from the settlement. But you can expect more permanent policy updates down the road, as the VA doubles down on its commitment to affordable homeownership for those who served.

Our lender team is fully versed in these VA loan changes. We’re here to ensure you understand the new landscape and can maximize your hard-earned military home loan benefits. Having an expert advisor in your corner is key during any transition like this.

So don’t hesitate to loop us in as you begin your homebuying journey. Our goal? Making the process as smooth and stress-free as possible for the military fam!