As a veteran or active servicemember, you’ve given so much in service to our country, and when it comes time to achieve the American Dream of homeownership, the process should honor that commitment by being as smooth and straightforward as possible. Whether you’re stationed in Guam or planning to settle here, purchasing a home on the island can come with unique considerations.
Thankfully, the National Association of REALTORS® (NAR), alongside other organizations, works tirelessly to ensure you have the support and resources you need. Veterans and servicemembers often face specific challenges, especially when buying a home in locations like Guam, and being informed can make all the difference.
In this guide, I’ll break down everything veterans need to know about buying a home on Guam, including important updates to real estate practices and how to fully maximize your VA home loan benefits. Whether you’re buying your first home or relocating after a PCS, this guide will empower you to make informed decisions.
Taking Advantage of Your VA Home Loan Benefit in Guam
One of the most significant benefits available to veterans and active-duty servicemembers is the VA Home Loan program. This program has helped countless veterans secure homes with no down payment, competitive interest rates, and no need for private mortgage insurance. But there’s been an important update that directly impacts you if you’re using your VA loan benefit, especially if you’re purchasing a home in a unique market like Guam.
As of August 10, 2024, the Department of Veteran Affairs (VA) temporarily changed a long-standing rule, allowing veterans to pay for real estate professional representation when buying a home. Previously, VA loan rules restricted veterans from covering these costs directly. Thanks to advocacy from the NAR, this policy has been adjusted, giving veterans more control and access to professional guidance during the homebuying process.
This policy change is significant for veterans looking to buy in Guam because the real estate market here can be different from what you might encounter on the mainland. With the new policy, you can now ensure you have expert local representation that understands the Guam market—without worrying about the restrictions that once existed. Guam’s real estate market has unique challenges, from limited inventory to understanding island-specific considerations like typhoon insurance and local building codes, making it more essential than ever to have knowledgeable help .
Why Is the Policy Temporary?
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The current change allowing veterans to pay for a real estate agent’s services is temporary. The VA has not yet made a final decision on whether to make this rule permanent. However, NAR continues to push for this policy to become a lasting part of the VA loan program. NAR is actively engaging with lawmakers and VA officials, sharing success stories of how this change is helping veterans like you gain better access to homeownership .
As you navigate the process of buying a home in Guam, know that your ability to pay for real estate services gives you the advantage of hiring local experts who understand the island’s market and will work on your behalf. This can make all the difference in securing a home that meets your needs, especially in a location like Guam, where the real estate landscape can be competitive and fast-moving .
Understanding Written Buyer Agreement
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Another recent change in real estate practices is the requirement for written Buyer Agreements. When working with a real estate professional, you’ll likely be asked to sign one of these agreements, which outlines the services your agent will provide and how they’ll be compensated. The key takeaway here is that this agreement is negotiable.
You have full control over the terms of the agreement. Don’t feel pressured to sign anything until you fully understand it and are comfortable with all the terms. This written agreement ensures transparency and protects you, setting clear expectations from the beginning.
In Guam, where military Buyers make up a significant portion of the real estate market, having a written agreement with a knowledgeable agent is crucial. Your agent will help navigate local regulations, loan-specific details, and even the distinct cultural and environmental considerations of living on an island .
How Does Your Buyer's Agent Get Paid?
One question that often arises during the homebuying process is: how will your real estate agent get paid? Typically, your agent’s compensation is determined by the written agreement we just discussed. There are several ways this can work:
1. The Seller or their Listing Broker may offer to compensate your Buyer’s Agent as part of the home sale.
2. As the Buyer, you can request that the Seller covers the cost of the Buyer Broker’s commission as part of the negotiation process.
3. You may choose to pay your agent directly, using the flexibility allowed by the new VA loan rules .
In Guam’s market, understanding how your agent is paid is important for structuring a deal that works for you. Because the island’s inventory can be limited and competition can be strong, having a clear plan for agent compensation can help smooth the negotiation process .
What Has NAR Done to Promote Access to Financing for Veterans?
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For years, NAR has been a strong advocate for veterans seeking to buy homes, working to protect and expand the benefits available through the VA Home Loan program. Here’s a quick rundown of some of NAR’s efforts that impact you as a veteran home Buyer:
1. VA Home Loan Guaranty Program: NAR has supported this program, which has helped more than 24 million veterans obtain home loans .
2. Flexible Loan Products: NAR continues to advocate for more flexible and competitive loan products, including improvements to the VA’s strict appraisal requirements that sometimes prevent veterans from purchasing their desired homes .
3. Legacy Home Loans: NAR is working to ensure that certain veterans’ descendants can use their unused VA home loan benefits .
4. Interest Rate Assumption: NAR advocates for allowing veterans to sell their homes to Buyers who can assume their existing, lower interest rates—a major advantage in today’s market .
These efforts are particularly important in places like Guam, where military Buyers often face challenges due to limited availability and higher demand for housing near military installations .
Why Work with a REALTOR® in Guam?
Buying a home in Guam, especially as a veteran, requires an understanding of the island’s unique real estate market. Working with a REALTOR® who has the Military Relocation Professional (MRP) certification ensures that you’ll have someone by your side who is trained to understand the specific needs of military Buyers. REALTORS® are committed to upholding the NAR Code of Ethics, which means they’re legally obligated to put your best interests first .
Plus, with an MRP-certified REALTOR®, you get the benefit of working with someone who understands the complexities of PCS moves, VA loan specifics, and the emotional and financial challenges that come with relocating or transitioning to civilian life .
In conclusion, purchasing a home as a veteran or active servicemember in Guam comes with unique benefits and challenges. By taking full advantage of your VA home loan benefits, understanding the real estate changes, and working with a knowledgeable local REALTOR®, you can navigate the process with confidence and achieve your dream of homeownership on the island.
Always here to guide you,
Leah del Mundo
Guam’s First AI Certified Agent, Guam’s Exclusive 72Sold Certified Agent
