Understanding the VA’s New Policy on Real Estate Agent Fees for Veterans


The Department of Veterans Affairs (VA) recently announced a significant policy change that affects veterans, active-duty service members, and surviving spouses using VA home loan benefits. This update temporarily allows these individuals to pay real estate agent fees directly. While this adjustment aims to enhance access to homeownership for veterans, it comes with several implications worth exploring.

Background of the Policy Change

Previously, veterans could not directly pay real estate agent fees when using VA home loan benefits. This restriction often limited their ability to secure professional representation in real estate transactions, potentially putting them at a disadvantage in a competitive housing market. The National Association of REALTORS® (NAR) advocated for this policy change to ensure veterans receive the support they need when purchasing a home.

Under the VA’s new temporary policy, “eligible veterans, active-duty service members and surviving spouses who use their VA home loan benefits can pay for certain real estate buyer broker fees when purchasing a home,” the VA said in a statement(link is external) Tuesday. “This update is intended to ensure VA’s programs continue to promote access to homeownership for veterans.”

Housing for veterans remains a top advocacy issue for NAR. “NAR launched an all-hands advocacy effort on this issue, meeting with VA officials, engaging with lawmakers and rallying our industry partners to ensure this prohibition was lifted,” says NAR Chief Advocacy Officer Shannon McGahn. “Without this change, thousands of veteran buyers could be denied access to professional representation in their pursuit of the American Dream of homeownership. Taking this extra step ensures veterans have the same opportunity as others to compete in a tight housing market. We applaud the VA for recognizing this danger and acting swiftly to protect veterans.”

The VA home loan guaranty program is a vital homeownership tool that provides military veterans with a centralized, affordable and accessible method of purchasing homes with no down payment as a benefit for their service to the nation. It’s also the only program that explicitly banned buyers from directly paying for professional real estate representation, NAR President Kevin Sears said in a statement.

“We applaud the VA for revising this policy and allowing veterans and active-duty service members the same advantages as other buyers in a competitive real estate market,” Sears said. “We look forward to continuing this conversation, and our 1.5 million members stand ready to support the VA in whatever way possible to protect the brave men and women who serve this country and ensure they are given the equal opportunity to achieve the American Dream of homeownership.”

Details of the New Policy

  1. Temporary Allowance: The new policy is temporary, reflecting the VA’s ongoing efforts to assess and adapt to the needs of veterans in the housing market.
  2. Direct Payment of Fees: Veterans, active-duty service members, and surviving spouses can now directly pay their real estate agent fees, providing more flexibility in choosing and compensating their representation.

Potential Benefits

  • Increased Representation: Veterans can now select real estate professionals without the constraint of indirect payment methods, ensuring they receive expert guidance throughout the home-buying process.
  • Competitive Edge: With professional representation, veterans can better navigate the competitive real estate market, making informed decisions and potentially securing better deals.

Challenges and Concerns

  • Financial Strain: One major concern is the financial burden this policy might place on veterans. The VA home loan benefit is known for its no-money-down feature, which is a crucial aspect for many veterans who may not have substantial cash reserves. The need to pay agent fees directly could pose a significant challenge for those with limited funds.
  • Risk of Unrepresented Purchases: Given the additional cost, some veterans might opt to forgo professional representation altogether, risking their ability to navigate complex real estate transactions effectively.


While the VA’s new policy on direct payment of real estate agent fees aims to provide veterans with more options and better support in the housing market, it also introduces new challenges. It’s essential for veterans to carefully consider their financial situation and the value of professional representation when planning to purchase a home. As this policy is temporary, ongoing feedback and adjustments may further refine its impact, ensuring that veterans receive the best possible support in their journey to homeownership.

Further Information

For more detailed information on the VA’s policy change, you can read the full article here.

Call to Action

At Ready Front Real Estate, we specialize in supporting veterans through every step of the home-buying process. Our expertise in VA home loans ensures you receive the best representation without unnecessary financial strain. We understand the unique challenges veterans face and are committed to providing the highest level of service.

If you’re a veteran looking to buy a home, contact us today at Ready Front Real Estate. Let us help you navigate this new policy and secure your dream home with confidence. Reach out to us at info@readyfrontrealestate.com or call 737-210-1690.

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