The National Association of Realtors settled the commission lawsuit on March 15, 2024.
Here are the ways that VA home buyers will be affected by the settlement.
Update….the VA issued a circular, 26-24-14 on June 11, 2024 saying that veterans can now pay buyer’s side commissions when getting a VA home loan in certain limited cases. This circular goes into effect on August 10, 2024.
In the past, er VA guidelines, VA home buyers cannot pay buyer’s side real estate commissions. This includes any processing or assistant fees. The contract would need to say that the seller is paying all buyer’s side Realtor commissions.
This changes on August 10, 2024 with the new guidance
Yes, the VA changed their policy with the new guidance that was issued on June 11, 2024. This policy goes into effect on August 10, 2024.
VA buyers would have been at a disadvantage if the policy was not updated. This is why Circular 26-24-14 was issued.
In Circular 26-24-14, the VA reiterated that the seller’s payment of buyer’s side commissions is not considered a seller concession and would not count toward VA allowable concessions.
While buyer commissions will change with the NAR ruling, it is still possible to buy a home with a VA home loan. As always, if you have any questions, feel free to reach out at 937-572-3713 or cscarpero@edgehomefinance.com
Take the 30 second mortgage quiz to see if you qualify
If you’ve been denied for a VA home loan by major lenders like Veterans United or Rocket Mortgage, don’t lose hope. You still have a strong chance of getting approved. The reason? Many big online lenders enforce additional rules known as lender overlays, which go beyond what the VA itself requires.
Manual underwriting is a process that involves a human underwriter reviewing an applicant’s financial information instead of an automated system. This process can be used for VA loans when the VA’s algorithm doesn’t approve an applicant, or when an applicant has certain negative items in their credit history.
Are you worried about your credit history affecting your chances of getting a VA home loan? In this video, we break down the VA’s rules regarding credit occurrences and explain how you can potentially overcome credit challenges.
Take the 30 second mortgage quiz to see if you qualify
