By car.org
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President Trump has signed H.R. 1815 – the VA Home Loan Reform Act – bipartisan legislation backed by NAR, which will permanently allow veterans to directly compensate their real estate agents, ensuring they can compete on equal footing in today’s competitive housing market.
NAR had been fighting for fairness in the homebuying process. In 2024, NAR successfully advocated for temporary suspension of a Dept. of Veterans Affairs rule that prohibited VA buyers from compensating their agents. With practice changes going into effect that year that would change the way buyer’s agent compensation is set and communicated, the rule would have unfairly disadvantaged veterans and active-duty service members trying to use their VA loan benefit. VA’s policy shift brought immediate relief, but it wasn’t enough. Real estate professionals, veterans’ groups and lawmakers alike agreed that a permanent fix was needed.
The VA Home Loan Guaranty Program is one of the nation’s most successful homeownership tools, enabling veterans to purchase homes with no down payment. In 2024 alone, VA-backed lenders financed approximately 490,000 home purchases and refinances. But there was a catch: VA policy barred veterans from paying for their real estate representation.
That meant if sellers didn’t cover the homebuyer’s agent fee—a scenario that’s more likely since implementation of the practice changes—veterans would be forced to go without expert guidance or would be edged out of deals altogether.
The bill also establishes a permanent partial claim program for VA loans to cover missed payments for borrowers in serious delinquency if they fall behind on their loan. These advances will be structured as subordinate liens, enabling borrowers to become current on their mortgage without refinancing or altering their original loan terms. The structure closely mirrors existing programs administered by the FHA and USDA
