Local Variance for Veteran Buyers

Attention Real Estate Professionals and Veterans:

The U.S. Department of Veterans Affairs (VA) has announced a significant update impacting veterans using VA loans to purchase homes. Effective August 10, 2024, a temporary local variance will allow veterans to pay for certain buyer-broker charges, including commissions and other related fees. This change comes in response to the recent NAR v. Burnett decision and aims to ensure veterans remain competitive in the housing market.

Key Points of the Temporary Variance:

• Areas of Application:
  • Applicable in regions where listing brokers are prohibited from setting buyer-broker compensation through multiple listing postings or where such compensation cannot flow through the listing broker.
• Financial Considerations:
  • Buyer-broker charges will not be included in the loan amount.
  • Veterans must demonstrate sufficient liquid assets to cover these charges at closing.
• Documentation:
  • While an invoice is not required, any charges paid by veterans should be recorded in the appropriate sections of the Closing Disclosure.

Additional Information:

• Veterans are encouraged to negotiate buyer-broker fees.
• Sellers are still permitted to cover buyer-broker charges for veterans, and such payments will not be treated as seller concessions.