How to Use a VA Loan in Colorado Springs
January 1, 2026
January 1, 2026
Moving to Colorado Springs and wondering how to use your VA loan the right way? You are not alone. With Fort Carson, Peterson Space Force Base, Schriever Space Force Base, and the U.S. Air Force Academy nearby, VA loans are common here, and timelines can be tight during PCS season. In this guide, you will learn exactly how to confirm eligibility, secure your COE, navigate entitlement and funding fees, and write a winning offer in El Paso County. Let’s dive in.
VA loans are a powerful benefit designed to help you buy with little or no down payment, competitive rates, and no monthly PMI. In Colorado Springs, many buyers use VA financing due to the concentration of military installations and frequent PCS moves. That local demand means sellers and listing agents are familiar with VA loans, yet a strong pre-approval and smart terms still matter in competitive neighborhoods.
If you are planning your move, your priorities will likely include commute time to base, access to services, and a clear closing timeline. A VA-savvy team helps you align these needs with a clean offer and smooth loan process.
Most VA borrowers are active-duty service members, veterans who meet service-length rules, certain Guard and Reserve members, and eligible surviving spouses. Your official eligibility is determined by the U.S. Department of Veterans Affairs. You can review the categories on the VA’s home loan eligibility page.
Your COE proves your VA entitlement to the lender. You can request it yourself or allow an approved lender to pull it for you. To get started, apply online using the VA’s step-by-step guide to request a COE. If you are a veteran, you can also obtain a COE by mail with your DD214.
Tip: Start the COE as soon as you receive PCS orders. Lenders need it to verify entitlement and calculate whether you may need a down payment in certain scenarios.
Bring these items to your VA-savvy lender for a faster pre-approval:
The VA does not set a universal minimum credit score. Lenders establish their own minimums, often in the mid-600s, and may approve lower scores with strong compensating factors. You may see a 41 percent DTI benchmark in VA guidelines, but lenders often allow higher DTIs with strong credit, cash reserves, or residual income.
VA underwriting focuses on residual income, which is the money left after paying monthly obligations and the new mortgage. Lenders use residual income and compensating factors to assess your ability to repay.
If you have full VA entitlement, you can generally buy with no down payment, regardless of the price, subject to lender guidelines. If you have reduced or partial entitlement due to an existing VA loan or a prior VA foreclosure, you may need a down payment for amounts above the local conforming limit. To check county conforming loan limits, use the FHFA’s Conforming Loan Limits Map and confirm details with your lender.
Your lender will calculate entitlement during pre-approval. This calculation is important if you plan to keep an existing VA-financed home or purchase above the conforming limit with partial entitlement.
Most VA purchase loans include a one-time funding fee. The percentage depends on your service category, whether it is first or subsequent use, and your down payment amount. You can typically finance this fee into the loan or pay it at closing. Some borrowers do not pay the fee. Veterans with service-connected disabilities and certain other categories may be exempt, which is documented on the COE. Confirm current percentages and exemptions on the VA’s funding fee and loan costs page and with your lender.
Sellers can pay some of your closing costs and concessions within VA rules, but they cannot pay your down payment if you are making one. A commonly cited cap is up to 4 percent of the sale price for certain concessions, subject to VA and lender policies. Your agent and lender will structure requests so they fit VA guidelines and local norms. Many buyers choose to finance the funding fee or use a blend of seller concessions and lender credits.
Use this quick list to get lender-ready and show sellers you are serious:
Pro tip: If you will close remotely, ask the title company early about notarization and power-of-attorney options used in El Paso County.
Commute patterns and gate access often shape the search. Decide the drive times that work for your family and target neighborhoods that fit your schedule. If you want a tighter showing schedule during PCS, line up virtual tours and prioritize homes with quick possession available.
HOAs are common. Review HOA documents for fees, rules, and reserves because they can affect financing and closing timelines. If schools are part of your decision, connect with base family support offices for official resources and help planning enrollment.
Given Front Range weather, ask your inspector to look closely at roofing, HVAC performance, insulation, and plumbing freeze protection. Colorado Springs has many mid-century neighborhoods where age-related items can show up during inspections.
The VA appraisal determines market value and checks for minimum property requirements that relate to safety and habitability. It is not a full-condition inspection. Always order a separate general home inspection and any needed specialty inspections. Read more about the VA appraisal on the VA’s appraisal and property requirements page.
If the appraiser flags items that do not meet minimum property requirements, the seller may need to complete repairs for the loan to close. In older neighborhoods, you might see roof, electrical, or safety items arise. Build some time into your contract for repair negotiation, contractor bids, and re-inspection if required.
HOA properties add another layer. Make sure your lender receives the HOA questionnaire quickly, and that you understand any community-specific rules that could affect financing or occupancy.
If value is lower than the contract price, you have options. You can negotiate a price reduction, bring some cash to cover the gap, or request reconsideration of value with better comparable sales. Your lender can guide the appeal process, which may add time to the closing.
Most VA buyers can close in a standard timeframe if documents and appraisal move quickly. If you need a remote closing, confirm digital or mail-away signing options with the title company early. Decide whether to finance the funding fee, have the seller contribute within VA limits, or use lender credits. Keep your LES, bank statements, and updated documents ready in case your lender needs refreshed items before final approval.
Ready to move forward with a neighborhood plan that fits your PCS timeline and budget? Connect with a local, VA-savvy team that knows how to structure strong offers and navigate appraisals. Reach out to Scott Coddington to start your VA pre-approval game plan and schedule a tailored tour near your preferred base.
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