VA Loans Demystified: Your Key to Affordable Homeownership in Colorado Springs
For veterans in Colorado Springs, VA loans offer unmatched benefits in the competitive housing market. With no down payment, lower interest rates, and savings for those with a disability rating, the VA loan remains one of the most powerful tools available to military members. Let’s explore the latest updates, including the 2025 VA loan limit for El Paso County, the VA funding fee structure, and why this benefit is worth considering. 1/3 of all homebuyers in Colorado Springs, CO are eligible to use the VA loan, so knowing it's benefit is key for homebuyers in our market.
Key Benefits of VA Loans
VA home loans provide:
- No down payment (for veterans with full entitlement).
- Lower credit requirements compared to conventional loans.
- Competitive interest rates, typically 0.5% lower than conventional loans.
- Limited closing costs with a capped 1% lender origination fee.
- No private mortgage insurance (PMI) requirement.
The VA Loan Funding Fee: What You Need to Know
To support the VA loan program, borrowers pay a VA funding fee at closing. This fee varies based on your down payment and whether it’s your first or subsequent use of the VA loan.
Here’s the 2025 VA funding fee breakdown:
| Down Payment | First-Time Use | Subsequent Use |
|---|---|---|
| No down payment | 2.15% | 3.3% |
| Up to 5% down | 1.5% | 1.5% |
| Over 10% down | 1.25% | 1.25% |
Good News for Disabled Veterans:
If you have a disability rating of 10% or more, the VA funding fee is waived, potentially saving you thousands of dollars at closing.
VA Loan Limits in El Paso County, Colorado
While veterans with full entitlement face no loan limits, those with partial entitlement (due to another VA-backed home) are subject to local limits. In El Paso County, the 2025 VA loan limit for a single-family residence is $806,500.
Debunking Common VA Loan Myths
-
Myth: VA loans take longer to process.
- Reality: VA loans can close in approximately 30 days or less. Even the assumption process, once lengthy, has been streamlined for efficiency.
-
Myth: VA loans can only be used once.
- Reality: Veterans can reuse their entitlement multiple times, provided their previous loan is paid off or the home is sold. VA loans can also be assumed by other veterans, allowing buyers to inherit attractive terms like low interest rates.
Real-World Success Story: Assumable VA Loans
I’m currently assisting a veteran selling his home to another veteran through an assumable VA loan at a remarkable 2.49% interest rate. This process has highlights the unique advantages of VA loans in today’s housing market.
Why Work with a Vetted VA Lender?
Choosing the right lender makes all the difference. I partner with a vetted VA lender who has specialized training to help veterans navigate their loan benefits efficiently. This ensures a smooth, stress-free process tailored to your unique needs.
Your Partner in VA Loan Success
Whether you’re buying, selling, or assuming a VA loan, I’m here to guide you every step of the way. Let’s ensure you maximize your VA benefits and find the perfect home for you and your family.
📞 Let’s Talk! Call me at 719-922-0102 or visit my website at NicoleStromRealtor.com.
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About the Author
Nicole Strom
Nicole is a retired military spouse of over 25 years, as well as a full time Real Estate Professional serving her clients in and around Colorado Springs.
You need a REALTOR® with vast experience and knowledge of our specific market. You need a REALTOR® that genuinely cares about you and puts your needs first. You need a REALTOR® you can trust. Nicole is that REALTOR®.
