CENTRAL TEXAS (KXXV) — Changes went into effect for VA loan home buyers on August 10, following a historic class action lawsuit settlement from earlier this Springinvolving the National Association of Realtors.
While this more than $400 million settlement impacts the real estate industry as a whole, Central Texas has such a large military footprint, so 25 News checked in with local real estate and VA experts to find out what people using VA home loans can expect.
Before these new rules went into effect, VA loan guidelines stated that a veteran purchaser using a VA loan could not pay a buyer's agent commission and fees — that has since changed, but before you start touring homes, Christy Gessler, Chairman Elect of Texas Realtors, explains two impactful changes you can expect when working with an agent to buy a home.
"When they go to hire a buyer’s agent to assist them, they’re going to have some different paperwork and it’s going to talk to them about an actual written agreement that they’re going to sign that says ‘Agent, you’re going to do these services for me and as a result of that, part of my closing costs to buy that home will be paying your professional service fee'," Gessler said.
While there’s still an opportunity for negotiations on agent compensation and how it will be paid, Danny Reyna with the Killeen Texas branch of Veterans United Home Loans says one of the new challenges VA loan home buyers may face is having to pay for any additional costs — leading some buyers to get a personal loan to help foot the bill.
With this being so new, Reyna has not had any contracts yet that would be impacted by these new rules.
“I don’t think there’s any urgency to rush because of the changes and this temporary change that the VA has done," he said.
The U.S. Department of Veterans Affairs is expected to release a permanent policy in the coming future.
He believes what the VA is trying to do is keep the veteran buyer in the housing marketplace and to "even the playing field".
