This is the complete guide to VA loans in Colorado Springs, written by Matthew Hager — a combat veteran mortgage broker who has closed 400+ loans for veterans and active duty at Fort Carson, Peterson SFB, Schriever SFB, and the Air Force Academy. If you've earned a VA benefit, you deserve a broker who understands it inside and out.
Table of Contents
- VA Loan Eligibility
- Certificate of Eligibility (COE)
- VA Funding Fee (2026 Rates)
- VA Loan Limits in El Paso County
- VA Appraisal & Minimum Property Requirements
- VA vs FHA vs Conventional
- VA IRRRL (Refinance)
- Common VA Loan Mistakes
- Frequently Asked Questions
VA Loan Eligibility
You may be eligible for a VA loan if you are:
- Veteran: Served 90+ days during wartime or 181+ days during peacetime
- Active Duty: Currently serving after 90+ consecutive days
- National Guard / Reserves: Completed 6+ years of service
- Surviving Spouse: Unmarried spouse of a service member who died in the line of duty
Discharge must be under conditions other than dishonorable. If you're unsure about your eligibility, I can help you check.
Certificate of Eligibility (COE)
The COE proves to lenders that you're eligible for a VA loan. You can get it three ways:
- Online through eBenefits: Fastest method — often instant
- Through your lender: Most VA lenders can obtain your COE for you
- By mail: Submit VA Form 26-1880 with discharge papers (DD-214)
As a veteran, I can help you navigate this process if you run into issues.
VA Funding Fee (2026 Rates)
The VA funding fee helps keep the program running. It's a percentage of your loan amount:
| Service Category | 0% Down | 5-10% Down | 10%+ Down |
|---|---|---|---|
| First-time use (Regular) | 2.15% | 1.5% | 1.25% |
| Subsequent use (Regular) | 3.3% | 1.5% | 1.25% |
| National Guard / Reserves (First) | 2.15% | 1.5% | 1.25% |
| National Guard / Reserves (Subsequent) | 3.3% | 1.5% | 1.25% |
Exemptions: Veterans with a service-connected disability rating of 10% or more are exempt from the funding fee. Purple Heart recipients are also exempt.
You can finance the funding fee into your loan rather than paying it out of pocket.
VA Loan Limits in El Paso County
Good news: There are no VA loan limits. As of 2020, the VA eliminated loan limits nationwide. This means:
- You can finance up to 100% of the home value with $0 down
- This applies to any price — from $200K to $2 million
- No limit on how many VA loans you can have (as long as you have entitlement)
Some lenders may have their own overlays, but the VA itself has no limits.
VA Appraisal & Minimum Property Requirements
A VA appraisal serves two purposes:
- Determine value: What's the home worth?
- Check MPRs: Does the home meet VA Minimum Property Requirements?
MPRs ensure the home is safe, sanitary, and structurally sound. Common issues include:
- Peeling or chipping paint (especially in homes built before 1776)
- Faulty electrical systems or exposed wiring
- Roof with less than 2 years of remaining life
- Missing handrails on stairs
- Water damage or foundation issues
- Missing kitchen appliances
VA appraisals are valid for 120 days and can be transferred to another VA lender if needed.
VA vs FHA vs Conventional
| Factor | VA Loan | FHA Loan | Conventional |
|---|---|---|---|
| Down Payment | $0 | 3.5% | 3-5% |
| Mortgage Insurance | None | MIP (life of loan) | PMI (until 20% equity) |
| Credit Score Min | 580-620 (lender) | 580 | 620 |
| Appraisal | VA (strict) | FHA (moderate) | Conventional (basic) |
| Assumable | Yes | Yes | No |
| Funding Fee | Yes (can be financed) | Yes (UFMIP) | No |
VA loans are almost always the best choice for eligible veterans. No PMI, $0 down, and more flexible credit requirements make them unbeatable.
VA IRRRL (Interest Rate Reduction Refinance Loan)
If you already have a VA loan, the IRRRL (also called a VA Streamline Refinance) lets you:
- Lower your interest rate
- Reduce your monthly payment
- Switch from an ARM to a fixed rate
- Refinance with minimal documentation
No appraisal, no income verification, and no out-of-pocket costs (typically rolled into the loan).
Common VA Loan Mistakes to Avoid
- Not shopping lenders: VA rates and fees vary widely. Get at least 3 quotes.
- Using a lender who doesn't specialize in VA loans: Not all lenders understand VA requirements.
- Waiving the VA appraisal contingency: In a competitive market, this can be tempting but risky.
- Not understanding the funding fee: Know your rate and whether you're exempt.
- Buying more house than you need: Just because you qualify for $0 down doesn't mean you should use it all.
- Not getting pre-approved before house hunting: In Colorado Springs' competitive market, you need to be ready.
Frequently Asked Questions
Veterans with qualifying service (90 days wartime or 181 days peacetime), active duty after 90 days, National Guard/Reserves after 6 years, and surviving spouses.
First-time use with 0% down: 2.15%. With 5-10% down: 1.5%. With 10%+ down: 1.25%. Disabled veterans (10%+ rating) are exempt.
No. As of 2020, there are no loan limits for VA loans. Veterans can finance up to 100% of the home value with no down payment.
VA loans typically close in 30-45 days. The VA appraisal can add a few days.
Yes. You can use your VA benefit multiple times as long as you have remaining entitlement.
A VA appraisal determines the home's value and ensures it meets VA Minimum Property Requirements (MPRs) for safety and livability.
Yes. Most borrowers finance the funding fee rather than paying it out of pocket.
No. VA loans allow $0 down for qualified veterans and active duty.
The VA doesn't set a minimum, but most lenders require 580-620.
Yes. VA loans work perfectly for active duty. I specialize in helping military families during PCS.
Ready to Use Your VA Benefit?
As a combat veteran, I'll make sure you get every benefit you've earned. No sales pitch, no pressure — just facts and options.