VA issued Circular 26-24-14 announcing a temporary local variance to allow borrowers to pay for real estate broker or agent (buyer-broker) charges. Per the Circular, borrowers may pay reasonable and customary amounts for buyer-broker charges (including commissions and any other broker-related fees) if:
- The subject property is an area where:
- Listing brokers are prohibited from setting buyer-broker compensation through multiple listing postings; or
- Buyer-broker compensation cannot be established by, or flow through, the listing broker;
- Buyer-broker charges are not included in the loan amount;
- The buyer-broker charges are considered when determining whether the borrower has sufficient liquid assets to close the loan;
- The total amount paid by the borrower is recorded in lines 1 through 3 of section H (“Other”) on the Closing Disclosure, and
- The buyer-broker representation agreement is uploaded as part of the package lenders use when requesting an appraisal.
The temporary local variance is effective August 10, 2024.
Click to view the VA Circular 26-24-14: https://www.tenaco.com/wp-content/uploads/2024/06/VA-Circular-26-24-14-06-12-24.pdf
