For years, veterans and active-duty military personnel enjoyed one of the best deals in real estate: the “No-No” VA loan—no down payment, no private mortgage insurance (PMI), and, until recently, no hassle over who paid the buyer’s agent. That last part? Gone. Thanks to the National Association of Realtors (NAR) settlement, the rules of the game have shifted—and veterans are now playing on a different field.
Before August 17, 2024, the process was simple. Sellers paid the buyer’s agent commission—typically 2.5% to 3%of the home’s sale price—as part of the standard 5% to 6% total commission split between both agents. For veterans using a VA loan, the Department of Veterans Affairs (VA) explicitly prohibited them from paying their agent’s commission directly, ensuring they weren’t hit with unexpected costs at closing. The system worked, and veterans got the keys to their homes without extra financial strain.
But now? The NAR settlement has blown up that model. Sellers are no longer required to pay the buyer’s agent. Buyers—including veterans—must now negotiate their agent’s fee upfront, either by convincing the seller to cover it or paying it themselves. And while the VA has updated its rules to allow veterans to pay these fees (something that was forbidden before), that doesn’t change the fact that thousands of dollars in unexpected costs could now stand between a veteran and their dream home.
The NAR Settlement: A $418 Million Bombshell in Real Estate
The March 2024 settlement—a $418 million agreement between the NAR and home sellers who sued over inflated commission practices—didn’t just tweak the system. It rewrote the rules. Here’s what changed:
• No More Automatic Seller-Paid Commissions
Before, sellers had to offer a commission to the buyer’s agent, and it was non-negotiable. Now? It’s optional. Sellers can choose to offer nothing, leaving buyers to cover their agent’s fee—or risk losing representation in a competitive market.
• Buyers Must Sign a Contract Before House Hunting
Want to tour a home? First, you’ll need a signed agreement with your agent outlining their fee. No more casual showings—this is a legal commitment before you even make an offer.
• VA Loans Had to Adapt—or Veterans Would Get Left Behind
The VA quickly revised its policies to allow veterans to pay buyer-broker fees, something that was strictly prohibited before August 2024. Why? Because without this change, veterans would’ve been shut out of the market overnight. But now, they face a harsh reality: If the seller won’t pay, the veteran must.
The New Reality for Veterans: Higher Costs, Tougher Negotiations
So, what does this mean for veterans trying to buy a home today?
1. The “No-No” Loan Now Comes with a Catch
The VA loan still offers no down payment and no PMI—two of its biggest perks. But the “no extra costs” part? That’s over. If a seller refuses to pay the buyer’s agent, a veteran could be on the hook for $10,000, $15,000, or more in agent fees on a typical home purchase. For many, that’s a deal-breaker.
2. Sellers Hold All the Power—And Are Just Finding Out
In a hot market, sellers can afford to be picky. If a veteran’s offer doesn’t include seller-paid agent fees, their bid might get tossed aside in favor of a buyer whose agent is already covered. Veterans now have to compete harder—and that could mean paying more just to stay in the game.
3. Agents Are Rethinking Who They Work With
Some agents may hesitate to take on VA buyers if they know the seller won’t pay their fee. Why? Because 3% of $400,000 is $12,000—and if the buyer can’t (or won’t) pay, the agent works for free. Veterans need to find an agent willing to fight for them—or risk being left without representation.
4. The VA’s Quick Fix Isn’t Enough
The VA’s decision to allow veterans to pay agent fees was a necessary move, but it doesn’t solve the core problem: Most veterans don’t have an extra $10K+ lying around to cover their agent. The VA loan was designed to remove financial barriers—not create new ones.
Pro Tips
The game has changed, but veterans aren’t out of the fight. Here’s how to adapt and still land the home you want:
1. Be Ready to Walk Away.
Not every home is worth overpaying or covering extra fees. If a seller won’t budge, keep looking. The right home—and the right deal—will come along.
2. Not all agents understand VA loans—or are willing to negotiate hard for veterans.
Work with someone who specializes in VA loans and knows how to structure offers to include seller-paid fees.
3. Look for homes where the seller is motivated (divorce, relocation, inheritance). Consider stale listings.
Motivated sellers and those who’ve been on the market a while (check your local average DOM “days on market” and focus on properties that are past that average number) are normally more willing to make concessions.
The Bottom Line: The “No-No” Loan Isn’t Dead—But the Rules Have Changed
The VA loan is still one of the best deals in real estate—no down payment, no PMI, and competitive rates. But the NAR settlement has added a new hurdle: buyer’s agent fees. Veterans now have to negotiate harder, budget smarter, and choose their agents wisely.
The “No-No” loan isn’t gone—but it’s not as simple as it used to be. For veterans who adapt quickly, the dream of homeownership is still within reach. For those who don’t? The market just got a lot tougher.
