Van Orden Spearheads Veterans Affairs Home Loan Program Update

WASHINGTON, D.C. – Today, the Department of Veterans Affairs (VA) announced an update to their home loan benefit program that will now permit active-duty servicemembers, veterans, and surviving spouses to pay for certain real estate buyer-broker fees when purchasing a home. Previously, VA lender’s handbook did not allow veteran home buyers to pay real estate agent or broker fees and commissions in connection with a VA home loan. The change in policy announced today comes after Congressman Derrick Van Orden (WI-03), Chairman of the House Veterans’ Affairs Economic Opportunity Subcommittee, took multiple steps to address the issue both legislatively and through communication with VA.

“We should be doing everything we can to take care of our veterans, not making it more difficult for them to secure basic needs like housing,” said Rep. Van Orden. “After weeks of communicating with VA, I am very glad to see them finally implement this change that will ensure veterans have the same opportunities for flexibility and representation as any other American in the housing market. Improving access to things such as housing, education, and vocational training are key for veterans to be productive members of society, and today’s announcement is a win for veterans across the nation.”

Recently, Congressman Van Orden and House Veterans’ Affairs Committee Chairman Mike Bost (R-IL) introduced the VA Home Loan Program Reform Act, which authorizes the Secretary of VA to take certain actions to prevent or resolve a default of a housing loan for veterans, such as loss mitigation options and a partial claim program. Click here to read the bill text.

“The VA Home Loan Program is one of the best programs ever created by the U.S. government to set servicemembers and veterans up for success. As Chairman, it’s critically important for me to keep it that way,” said Chairman Bost. “We do that by making needed improvements to it as they arise, which is exactly what Economic Opportunity Chairman Rep. Van Orden’s bill, the VA Home Loan Program Reform Act, would do. This bill would create a partial claim program to help veterans who fell behind on their mortgage payments during the pandemic catch up on payments, while still allowing them to keep their current loan and stay in their homes. This is critically important as we continue to have serious concerns about VA taking over mortgages. Rep. Van Orden’s bill is the right solution to protect veteran homeowners during trying economic times, while also protecting American taxpayers and the integrity of the home loan program.”

“NAR applauds the VA for changing its policy and giving active-duty military personnel and veterans the same benefits as other purchasers in a competitive real estate market,” said the National Association of REALTORS. “Furthermore, we commend Chairman Van Orden and Chairman Bost for their leadership on the House Veteran Affairs Committee. We appreciate their legislative initiatives to protect veteran buyers and make this change permanent. Our 1.5 million members are eager to support the VA in any way they can in order to safeguard the courageous men and women who serve our nation and ensure they have equal access to the opportunity to realize the American Dream of homeownership.”

Rep. Van Orden also urged VA Secretary Denis McDonough to establish parity between veterans and other home buyers regarding buyer-broker fees. To read the letter, click here