Streamlining Home Buying for Veterans

Veterans who seek VA loans for home purchases currently are
not allowed to pay for their own pest inspection during the buying process. Such
costs, usually from $50 to $100, are typically paid by the seller or the lender
in the case of REO transactions.

Jeannette Way, chair of the
National Association of REALTORS®’ Federal Housing Policy Committee, said the
group for months has been trying without success to persuade VA officials “to
level the playing field” for veteran borrowers by removing that requirement,
which can make veterans’ purchase offers less appealing to sellers who may not
want to be responsible for such fees.

At the REALTORS® Midyear
Legislative Meetings on Wednesday, the committee agreed to seek legislative
action through Congress to lift the impediment. Way pointed out that the VA Home
Loan Guarantee Program currently has no administrator, making legislative relief
a more viable option.

“Since buyers who are veterans are not allowed to pay for those
inspections, it makes their transactions more complicated,” Way said. The
committee is proposing to “allow VA borrowers to negotiate all fees and closing
costs.”

—Wendy Cole, REALTOR® Magazine

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