VA Home Buying Guide (2026): How to Buy a Home in Colorado Springs With a VA Loan

Here's the short version: if you're an eligible service member, veteran, or surviving spouse, a VA loan can let you buy a home in Colorado Springs with no down payment, no monthly mortgage insurance, and no VA loan limit if you have full entitlement. You still need a lender to approve you, the home still has to appraise and meet VA's minimum property requirements, and there's a funding fee unless you're exempt.

That's the headline. The details are where people either save a lot of money or get blindsided at the closing table. This VA home buying guide walks through how the program actually works in 2026, what changes when you're buying in the Pikes Peak region, and the strategy we use with our military and veteran clients so the process feels a lot less like a group project nobody briefed you on.

Quick note before we dive in: we're Realtors, not lenders, and nothing here is official military or VA guidance. Your lender and the VA home loan program are the final word on your eligibility and numbers. Our job is to help you buy the right house without leaving money on the table.

What a VA Loan Is (and What It Isn't)

A VA loan is a mortgage from a private lender (a bank, mortgage company, or credit union) that the Department of Veterans Affairs partially guarantees. The VA doesn't lend you the money. It backs part of the loan, which is why lenders can offer terms that are tough to match with other loan types.

The big benefits:

• No down payment required for buyers with full entitlement, as long as the price doesn't exceed the appraised value.
• No monthly mortgage insurance. Conventional loans with less than 20% down and FHA loans both carry mortgage insurance. VA loans don't.
• Limits on what you can be charged. VA restricts certain closing costs and fees borrowers can pay.
• Assumability. VA loans can be assumed by a qualified buyer with lender approval, which can matter a lot when rates move.

What it isn't: a free pass. You still need acceptable credit, income, and debt levels for your lender. And it's for a home you'll live in as your primary residence, not a vacation place or a pure rental.

Who Qualifies for a VA Home Loan

Eligibility is based on service history, and the exact rules depend on when and how you served. According to VA's eligibility page, the general requirements look like this:

• Active-duty service members: generally at least 90 continuous days of service.
• Veterans who served from August 2, 1990, to present: generally 24 continuous months, or the full period you were called to active duty (at least 90 days).
• National Guard and Reserve members: qualifying active-duty time, or 6 creditable years of service under the conditions VA outlines.
• Surviving spouses: may qualify in certain situations, including those receiving or eligible for Dependency and Indemnity Compensation.

There are exceptions for things like service-connected disability discharges, and VA reviews other-than-honorable discharges case by case. If you're unsure, don't guess. Request your Certificate of Eligibility and find out.

Getting Your Certificate of Eligibility (COE)

Your COE shows lenders you're eligible and how much entitlement you have available. You can request it online through VA, or your lender can usually pull it for you in a few minutes. We tell our buyers to have the lender pull it during preapproval, because it answers the entitlement question before you fall in love with a house.

VA Loan Limits and Entitlement in 2026

This is the part that confuses people the most, so let's make it painless.

If You Have Full Entitlement

There's no VA loan limit. Per VA's loan limits page, if your full entitlement is available, you can borrow without a down payment as long as your lender approves the loan amount and the home appraises for at least the price. You generally have full entitlement if you've never used your VA benefit, or you used it and fully paid off and sold that home (or had entitlement restored).

If You Have Remaining Entitlement

If you still have a VA loan on another home (common for military buyers who keep a house as a rental after a PCS), the county loan limit comes back into play. For 2026, FHFA set the baseline one-unit conforming loan limit at $832,750, and El Paso County uses that baseline figure.

VA's formula, in plain English:

1. Take the county limit and multiply it by 25%.
2. Subtract the entitlement you already have tied up (it's on your COE).
3. What's left is your remaining entitlement. Multiply that by 4 to get a rough idea of how much you could borrow with no down payment.

Want to buy above that number? You can, you'll just need a down payment to cover the gap. Your lender runs the real math, but knowing this ahead of time keeps you from shopping in the wrong price range.

The VA Funding Fee: What It Costs and Who Skips It

The funding fee is a one-time charge that helps keep the program running. It's a percentage of the loan amount (not the price), and you can roll it into the loan. Here's VA's current chart for purchase loans, per VA's funding fee page:

You don't pay the funding fee if you receive VA compensation for a service-connected disability (or are eligible for it but receive retirement or active-duty pay instead), receive Dependency and Indemnity Compensation as a surviving spouse, have a proposed or memorandum rating before closing on a pre-discharge claim, or are on active duty and provide evidence of a Purple Heart on or before closing.

Real talk: if you have a disability claim in process, talk to your lender early. Timing can matter, and a rating that lands before closing is a very different outcome than one that lands after.

Closing Costs, Seller Concessions, and Agent Fees

VA buyers still have closing costs: lender fees, title, appraisal, prepaid taxes and insurance, and so on. The good news is the VA program gives you more tools than most to cover them.

• Seller-paid closing costs: Sellers and builders can pay your normal closing costs, and VA doesn't cap those.
• Seller concessions: Extras beyond normal closing costs (like paying your funding fee, paying off a debt, or prepaying hazard insurance) are capped at 4% of the home's reasonable value, according to VA.
• What can be financed: On a purchase, only the funding fee can be added to the loan. Everything else gets paid at or before closing, by you, the seller, or a lender credit.

Buyer's Agent Compensation

Since August 10, 2024, VA has allowed eligible VA buyers to pay certain reasonable and customary buyer-broker fees, which was not allowed before. Sellers can still agree to pay them too, and in our experience that's still very much a conversation worth having on most offers. Ask your lender how the current guidance applies to your file, because this is one area that's been evolving.

The Appraisal and VA Minimum Property Requirements

Every VA purchase gets an appraisal from a VA-assigned appraiser. They're checking two things: what the home is worth, and whether it meets VA's minimum property requirements (MPRs). Think safe, sound, and sanitary. Working heat, a decent roof, no peeling paint on older homes, safe access, that kind of thing.

If the appraisal comes in low, VA lists your options: request a Reconsideration of Value with valid sales data, negotiate the price down, or pay the difference in cash. Your purchase contract should include the VA escape clause (sometimes called the VA option clause), which protects you if the home appraises below the price.

The Appraisal Is Not an Inspection

This one gets people. The VA appraisal is not a home inspection, and VA itself strongly recommends getting one. The appraiser isn't crawling into the attic or running every faucet. Get a real inspection. Every time. Yes, even on new construction.

Why Sellers Sometimes Side-Eye VA Offers (and How to Fix That)

There's an old myth around here that VA offers are "harder" for sellers. In a lot of cases it comes from outdated stories about strict appraisals or slow closings. A VA loan isn't a weaker offer by default, but a poorly written VA offer can be.

What we do to make a VA offer compete:

• Get fully preapproved, not just prequalified, with a lender who closes VA loans regularly in El Paso County.
• Ask for concessions strategically. Asking for every possible credit on a home with multiple offers is a quick way to lose. On a home that's been sitting, it's a different story.
• Write clean terms. Reasonable deadlines, clear inspection terms, and a lender who will actually answer the listing agent's call.
• Prep for MPRs before they're a problem. If we see peeling paint or a missing handrail at the showing, we'd rather address it in the offer than scramble at appraisal.

Buying With a VA Loan in Colorado Springs: Local Things to Know

The VA rules are national. The houses, the HOAs, and the tax bills are local. Here's what we watch for in the Pikes Peak region.

PCS Timing and Buying From Out of State

With Fort Carson, Peterson Space Force Base, Schriever Space Force Base, the U.S. Air Force Academy, and Cheyenne Mountain Space Force Station all in the area, a big chunk of our VA buyers are moving here on orders. You can absolutely start the process before you arrive: get preapproved, tour virtually, and line up your inspection and appraisal while you're still finishing up at your current duty station. VA loans are for homes you intend to live in, so talk to your lender about how your report date fits their occupancy requirements.

HOAs, Covenants, and Metro Districts

A lot of the newer communities around Colorado Springs, Falcon, Peyton, and Fountain have HOAs, covenants, and often a metro district that shows up on your property tax bill. None of that disqualifies a home for a VA loan, but it absolutely affects your monthly payment and your lender's math. Get the HOA dues and the metro district mill levy before you write an offer, not after.

And read the covenants. We say this with love, because we live in Meridian Ranch in Peyton and have personally received more than a handful of covenant notices for not pulling our trash cans back up the same day they were emptied. Covenants are real, and somebody is reading them.

New Construction With a VA Loan

New construction is a huge part of the market on the east side and north side of Colorado Springs, and VA buyers use their benefit on new builds all the time. A few things to know: builder incentives often come with strings attached to the builder's preferred lender, those incentives still need to fit within VA's concession rules, and the home still needs a VA appraisal. Compare the full package, not just the shiny rate buydown on the sales sheet.

Rural Properties, Wells, and Septic

In areas like Black Forest, Peyton, and parts of Falcon, you'll find acreage homes on wells and septic systems. VA loans can work for these, but expect your lender and appraiser to pay closer attention to water and septic, and plan your inspection period accordingly.

Colorado's Property Tax Exemption for Qualifying Disabled Veterans

If you have a service-connected disability rated 100% permanent and total, or you've been granted individual unemployability, Colorado offers a property tax exemption on your primary residence. Per the El Paso County Assessor, 50% of the first $200,000 of the home's actual value is exempt, you must have owned and occupied the home as your primary residence as of January 1, and the filing deadline is July 1. More details are on the Colorado Division of Veterans Affairs site. If this applies to you, put that July 1 date on your calendar the day you close.

The VA Home Buying Process, Step by Step

1. Request your COE (or let your lender pull it).
2. Get preapproved with a lender experienced in VA loans. Compare more than one if you can; rates and lender fees vary, and some lender fees are negotiable.
3. Pick an agent who does VA deals regularly and understands military timelines.
4. Set your real budget, including taxes, insurance, HOA dues, and metro district costs, not just the max you're approved for.
5. Shop and write a strong offer with the VA escape clause and a smart concession strategy.
6. Get a home inspection and negotiate any repairs.
7. VA appraisal confirms value and MPRs.
8. Underwriting and final approval. Keep your credit and finances boring. Seriously, don't buy a truck right now.
9. Review your Closing Disclosure, which your lender must give you at least 3 business days before closing.
10. Close and get your keys.

Common VA Buyer Mistakes We Help People Avoid

• Assuming the max approval is the right budget. Lenders approve a number. You live with the payment.
• Skipping the inspection because the appraisal "checked the house." It didn't, not the way an inspector does.
• Not checking entitlement before shopping, especially if you still own a home financed with a VA loan.
• Ignoring the funding fee exemption. If you're eligible for disability compensation, make sure it shows correctly so you aren't charged a fee you don't owe.
• Forgetting about HOA and metro district costs until the lender recalculates your payment.
• Overlooking VA assumable loans. Some sellers in our area have VA loans that can be assumed by a qualified buyer, which can be worth asking about. Just know that assuming a loan can tie up entitlement, so get guidance from the lender handling it.

Why Work With Us on a VA Purchase

We're Crystal Sisler and Shawn Bedel with Everyday Properties & Investments, powered by eXp Realty. We're both Colorado natives, we live in Meridian Ranch in Peyton, and we've spent more than seven years helping over 300 families buy and sell across the Pikes Peak region. Military and PCS moves, VA buyers, and VA assumable loans are a core part of what we do, along with new construction, which matters a lot around here.

For our military clients, the goal is simple: understand the timeline you're actually working with, build a plan around it, and avoid surprises. Not every move goes perfectly. But the ones that go well almost always started with a clear plan early.

Frequently Asked Questions

Do I need a down payment for a VA loan in Colorado Springs?

No, not if you have full entitlement and the home appraises for at least the purchase price. If you have reduced entitlement because another VA loan is still active, you may need a down payment depending on the price and El Paso County's loan limit.

Is there a VA loan limit in El Paso County in 2026?

Not if you have full entitlement. If you have remaining entitlement, VA uses the county's one-unit conforming loan limit, which is $832,750 for El Paso County in 2026, to calculate how much you can borrow with no money down.

How much is the VA funding fee?

For a first-time VA purchase with less than 5% down, it's 2.15% of the loan amount, and 3.3% for subsequent use with less than 5% down. Putting 5% or 10% down lowers it, and veterans receiving VA disability compensation, among others, are exempt.

Can the seller pay my closing costs on a VA loan?

Yes. Sellers can pay your normal closing costs with no VA cap, and they can also offer concessions, like paying your funding fee, up to 4% of the home's reasonable value.

Can I use a VA loan to buy new construction in Colorado Springs?

Yes. VA buyers use their benefit on new builds regularly. The home still needs a VA appraisal, and builder incentives need to fit within VA's concession rules, so compare the builder's preferred-lender offer against outside lenders.

Can I start buying before I PCS to Colorado Springs?

Usually, yes. Many military buyers get preapproved and go under contract before they arrive. Talk to your lender about how your report date fits their occupancy requirements, since a VA loan is for a home you'll live in.

Do disabled veterans get a property tax break in Colorado?

Yes, if you qualify. Veterans with a 100% permanent service-connected disability rating, or individual unemployability, can exempt 50% of the first $200,000 of their primary home's actual value. In El Paso County, the application deadline is July 1.

Ready to Use Your VA Benefit in Colorado Springs?

If you're PCSing to the area or finally ready to put that VA benefit to work, we'd love to help you figure out your budget, the communities near your installation, how VA rules apply to the homes you're looking at, and what it takes to buy from out of state without losing your mind. Call or text Crystal and Shawn at 719.238.1771, and let's build a plan that fits your timeline.