WC Wisconsin News

WASHINGTON, D.C. – The Department of Veterans Affairs (VA) announced an update to their home loan benefit program, allowing active-duty servicemembers, veterans, and surviving spouses to pay for certain real estate buyer-broker fees when purchasing a home. Previously, the VA lender’s handbook did not permit veteran home buyers to cover real estate agent or broker fees and commissions in connection with a VA home loan.

The policy change follows efforts by Congressman Derrick Van Orden (WI-03), Chairman of the House Veterans’ Affairs Economic Opportunity Subcommittee. "We should be doing everything we can to take care of our veterans, not making it more difficult for them to secure basic needs like housing," said Rep. Van Orden. "After weeks of communicating with VA, I am very glad to see them finally implement this change that will ensure veterans have the same opportunities for flexibility and representation as any other American in the housing market."

Recently, Congressman Van Orden and House Veterans’ Affairs Committee Chairman Mike Bost (R-IL) introduced the VA Home Loan Program Reform Act. This legislation authorizes the Secretary of VA to take actions such as loss mitigation options and a partial claim program to prevent or resolve defaults on housing loans for veterans.

"The VA Home Loan Program is one of the best programs ever created by the U.S. government to set servicemembers and veterans up for success," said Chairman Bost. "This bill would create a partial claim program to help veterans who fell behind on their mortgage payments during the pandemic catch up on payments while still allowing them to keep their current loan and stay in their homes."

The National Association of REALTORS expressed support for the updated policy: "NAR applauds the VA for changing its policy and giving active-duty military personnel and veterans the same benefits as other purchasers in a competitive real estate market," said NAR representatives.

Rep. Van Orden also urged VA Secretary Denis McDonough to establish parity between veterans and other home buyers regarding buyer-broker fees.