Congress Unites to Pass Game-Changing VA Home Loan Reform

Congress Unites to Pass Game-Changing VA Home Loan Reform

In a rare show of unanimous support, the U.S. House of Representatives passed H.R. 1815, the VA Home Loan Reform Act, a critical measure designed to give veterans and active-duty service members greater access to professional representation when purchasing a home. The bill, strongly supported by the National Association of REALTORS® (NAR), removes an outdated restriction that prevented VA buyers from directly compensating their real estate agents. This barrier, unique to VA-backed loans, put military buyers at a competitive disadvantage in today’s fast-moving housing market.

Traditionally, buyers using a VA home loan could not pay for their agent’s commission out of pocket, relying solely on sellers to cover that cost. In many modern real estate transactions—especially in competitive or multiple-offer scenarios—sellers are less willing to pay a buyer’s agent fees. This often left veterans unrepresented or forced to choose homes where sellers were willing to comply. With this reform, VA buyers will now be able to negotiate for and directly hire the representation they deserve, leveling the playing field.

The bill doesn’t stop there. It also includes the creation of a partial claims program to help veterans who fall behind on their mortgage payments. This safety net ensures that those who served our country will not lose their homes simply due to temporary financial hardship. By offering flexible options and paths to homeownership stability, the legislation reflects a broader commitment to supporting military families long after their service ends.

The NAR, which represents over 1.5 million REALTORS® nationwide, played a central role in championing this cause. Shannon McGahn, NAR’s Chief Advocacy Officer, emphasized the importance of this fix, noting that VA loans were the only federal loan program to prohibit buyers from directly compensating their agents. “This is about fairness,” McGahn stated. “Veterans should have access to the same professional representation as any other buyer in the market.”

With over 490,000 VA-backed purchases and refinances made in 2024 alone, the impact of this reform is significant. The bill now moves to the U.S. Senate, where advocates remain hopeful for swift approval. As real estate professionals and veterans alike celebrate this victory, the bipartisan support behind H.R. 1815 signals a major win—not just for the real estate industry—but for those who served our country with honor.

Ready the full article here:  https://www.nar.realtor/magazine/real-estate-news/house-unanimously-backs-va-home-loan-fix-championed-by-nar