The National Association of REALTORS® extended its sincere gratitude in a letterpdf to the Department of Veterans Affairs for its decisionpdf to temporarily allow veterans to directly compensate real estate representatives when using VA home loans. NAR continues to engage and urge VA to make this vital policy permanent, especially in light of the recent passage of the VA Home Loan Program Reform Act.
“Professional representation is crucial during the home buying process, especially for veterans navigating the specific requirements of VA loans,” the letter states. “Real estate professionals guide veterans through property selection, negotiation, inspections and the closing process, helping them make informed decisions while ensuring properties meet VA standards. This expertise is particularly valuable in today's challenging housing market.”
Leveling the Homebuying Field for Veterans
The VA home loan program has long served as a gateway for veterans to achieve the American Dream of homeownership. In 2024, it supported approximately 490,000 home purchases and refinances, demonstrating its reach and impact in today’s housing landscape.
Despite this success, outdated rules had barred users of the VA program from compensating buyer-side agents. This created an imbalance that left veterans at a disadvantage in competitive markets. By allowing direct payment to real estate representatives, VA took a critical step in restoring equality and choice for veteran homebuyers.
Why Permanent Change Matters
NAR emphasizes that veterans deserve the same flexibility as other home buyers in how they structure their real estate transactions.
The ability to directly compensate trusted real estate professionals is more than a technical detail—it:
- Ensures parity between veterans and the broader market in competitive settings
- Promotes clarity and consistency among veterans, lenders and agents
- Supports the VA’s mission of fostering financial stability through responsible homeownership.
Moreover, as VA loan usage fluctuates across demographics and generations, flexible compensation options are a priority for the veteran population regardless of evolving market conditions.
“NAR applauds the temporary suspension of the restrictive policy but stresses that veterans need permanence, not provisional fixes,” says NAR Executive Vice President and Chief Advocacy Officer Shannon McGahn. “The VA Home Loan Program Reform Act paves the way for this change, and with its passage, NAR urges the department to implement regulatory steps to codify veterans’ rights to choose and compensate their agents directly.”
