VA Issues Temporary Fix to Allow Buyer-Paid Broker Fees on VA Mortgage Loans

In a significant shift aimed at easing the path to homeownership for veterans, the Department of Veterans Affairs (VA) has announced a temporary measure allowing buyer-paid broker fees on VA mortgage loans. This change addresses a long-standing issue within the VA loan system, offering new opportunities and benefits for veteran homebuyers. Let’s delve into what this temporary fix entails and its potential impact on the market and veteran homebuyers.


Understanding VA Loans

VA loans are mortgage loans guaranteed by the Department of Veterans Affairs, designed to offer favorable terms to eligible veterans, active-duty service members, and certain members of the National Guard and Reserves. Key benefits include no down payment requirements, no private mortgage insurance (PMI), and competitive interest rates. Historically, these loans have been instrumental in helping veterans achieve the dream of homeownership.


The Issue with Broker Fees

One of the critical challenges with VA loans has been the restriction on buyer-paid broker fees. Traditionally, the VA has prohibited veterans from paying these fees directly, intending to protect them from potential overcharging. However, this restriction has inadvertently limited the flexibility and choice for veteran homebuyers, as brokers have often been reluctant to engage with VA loans due to their lack of understanding the benefits VA loans provide and how to navigate perceived complexities.


The Temporary Fix

To address this issue, the VA has issued a temporary fix that allows buyers to pay broker fees directly. This change is intended to enhance the competitiveness of VA loans in the mortgage market and provide veterans with greater access to a wider range of properties and financing options.


Key points of the temporary fix include:

  1. **Buyer Flexibility**: Veterans now have the flexibility to choose mortgage brokers who may have previously been hesitant to work with VA loans. This can potentially lead to better loan terms and a more competitive homebuying process.


  1. **Increased Market Participation**: By allowing buyer-paid broker fees, more mortgage brokers may be willing to participate in VA loan transactions, increasing the pool of available professionals who can assist veterans in securing home loans.


  1. **Temporary Nature**: It’s important to note that this is a temporary measure. The VA will likely monitor its impact on the market and veteran homebuyers, with the possibility of making the change permanent if it proves beneficial.


Implications for Veterans

This temporary fix is poised to have several positive implications for veterans:

– **Greater Choice**: Veterans will have access to a broader range of brokers and lending options, potentially leading to better loan terms and conditions.

– **Enhanced Competitiveness**: With the ability to pay broker fees, VA loans become more competitive with conventional loans, making them a more attractive option for veterans.

– **Potential Cost Savings**: While veterans can now pay broker fees, the increased competition among brokers could lead to more favorable pricing and terms, ultimately saving veterans money.


Industry Response

The response from the mortgage industry has been largely positive. Many brokers and lending professionals see this as a long-overdue change that will make VA loans more attractive and accessible. By allowing veterans to pay broker fees, the VA has removed a significant barrier, encouraging more brokers to engage with VA loan transactions.



The VA’s temporary fix to allow buyer-paid broker fees on VA mortgage loans is a welcome development for veterans and the mortgage industry alike. It promises to increase flexibility, choice, and competitiveness in the VA loan market, ultimately benefiting veteran homebuyers. As this temporary measure takes effect, its impact will be closely watched, with the potential for it to become a permanent change that further supports veterans in their journey to homeownership.

For veterans considering a home purchase, this is an opportune time to explore VA loan options and take advantage of the increased flexibility and potential benefits this temporary fix provides. As always, working with knowledgeable mortgage professionals who understand the intricacies of VA loans will be crucial in navigating this evolving landscape.

This article was provided by Goldwater Bank.

Goldwater Bank, N.A., located in Phoenix, AZ, focuses on providing financial services in a variety of different avenues, within all aspects of a clients life, also known as Lifestyle Banking. Goldwater offers an expanded reach of mortgage products under our national mortgage platform.