VA Loans and Realtor Commissions Post NAR Ruling

 


VA Loans and Realtor Commissions Post NAR Ruling

The real estate industry has been in flux since the recent NAR commission lawsuits reshaped how buyer-agent commissions are handled. For veterans and active-duty service members using the VA Loan, the Department of Veterans Affairs just added another twist: a long-awaited change that finally allows veterans to pay their buyer’s agent directly.

Let’s break down what this means—and how it ties into broader commission changes across the industry.

What Changed with VA

Historically, the VA did not allow veterans to pay their buyer’s agent (often called a buyer-broker). The rule required that if a veteran used an agent, the seller had to pay that agent’s commission. While this protected veterans from out-of-pocket costs, it also created complications—especially in competitive markets where sellers didn’t want the extra burden.

The new VA announcement makes these key updates:

  • Veterans may now pay their agent directly in areas where the MLS no longer allows seller-paid buyer commissions.

  • The commission cannot be financed into the VA loan—it must be paid in cash.

  • Lenders must verify veterans have enough assets to cover commissions plus closing costs and any down payment.

  • Buyer’s agent commission must be clearly disclosed in both the Closing Disclosure and the sales contract.

  • Sellers can still agree to pay the commission—but they’re no longer required to.

How This Intersects with NAR Changes

The NAR settlement over buyer-agent commissions is reshaping how compensation is structured nationwide. As of 2024–2025, many MLS systems have stripped out the automatic offers of compensation from listing agents to buyer’s agents. This means buyer-broker agreements are becoming essential: buyers (including veterans) now have to formally agree with their agent on how and whether that agent will be paid.

For veterans, the VA’s rule change is critical—it puts them on a more level playing field with other buyers in this new landscape. Without the update, VA buyers could have been at a disadvantage, unable to compensate their agents in a post-NAR world.

What Veterans Need to Know

  • Budgeting is key. Since VA loans don’t allow agent commissions to be financed, veterans must plan for extra cash reserves.

  • Transparency is mandatory. The commission must be written into the sales contract and disclosed at closing.

  • Seller flexibility remains. Sellers may still agree to pay for the buyer’s agent—it just isn’t required anymore.

Why This Matters for Realtors

For Realtors, especially those serving veterans, this announcement highlights two realities:

  1. Education is vital. Veterans may not know they can now pay their own agent. Guiding them through this change can build trust and loyalty.

  2. Buyer-broker agreements matter more than ever. Agents working with veterans need clear agreements upfront to avoid surprises during underwriting and closing.

Bottom Line

Between the NAR commission shakeup and the VA’s new rules, veterans and their agents face a changing landscape. But these updates also create opportunity: veterans now have more flexibility, and Realtors who understand these changes can position themselves as trusted guides in an evolving market.

If you’re a veteran buyer, don’t let commission rules hold you back—partner with a VA-savvy Realtor and lender who know how to navigate these updates.

Pro tip for Realtors: Position yourself as the local VA loan expert who not only knows how to structure offers but also how to explain commission rules clearly to veteran clients. This is where relationships and education win.

About Between Two Doors

Between Two Doors is a podcast where I talk with Realtors about their journey, aiming to connect home buyers and sellers with agents on a more personal level. I ask "right brain" questions that go beyond transactions, focusing on the experiences, values, and passions that make these professionals great at what they do.

Listen to more episodes at: https://www.betweentwodoors.com

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