A VA loan lets eligible service members and veterans buy a home in Colorado with no down payment and no monthly mortgage insurance. It is one of the best benefits you earned, and many buyers leave money on the table because nobody walked them through it.
I flew KC-130Js for 12 years in the Marine Corps. Now I help military families and veterans buy homes across the Denver metro and Front Range. Here is what you need to know before you start.
What makes a VA loan different?
No down payment required. You can finance 100% of the purchase price if you have full entitlement.
No PMI. Conventional loans with less than 20% down add private mortgage insurance every month. VA loans don't.
No VA loan limit with full entitlement. If you have never used your benefit, or your past VA loan is paid off, VA does not cap how much you can borrow. Your lender still sets limits based on income and credit.
Seller concessions. A seller can contribute toward your costs, which helps in a market like ours.
How much is the VA funding fee?
The funding fee is a one-time charge, usually rolled into the loan. Rates have not changed since April 2023:
Less than 5% down: 2.15% first use, 3.30% after first use
5% to 9.99% down: 1.50% (first use or after)
10% or more down: 1.25% (first use or after)
On a $500,000 loan with nothing down, the first-use fee is $10,750. You are exempt if you receive VA disability compensation, are an active-duty Purple Heart recipient, or are a surviving spouse receiving DIC. Check your Certificate of Eligibility; it shows your exemption status.
Colorado bonus: the disabled veteran property tax exemption
If you are rated 100% permanent and total, or paid at the 100% rate through Individual Unemployability, Colorado exempts 50% of the first $200,000 of your home's actual value from property tax. It applies to your primary residence. Apply through the Colorado Division of Veterans Affairs.
Five steps to buy with your VA loan
Get your Certificate of Eligibility (COE). Your lender can usually pull it in minutes, or you can request it on VA.gov.
Get preapproved with a lender who closes VA loans regularly. VA experience matters on appraisals and timelines. You are free to choose any lender, and I'm happy to share names of lenders who know the VA process well.
Set a budget that includes closing costs. VA loans can be $0 down, but they are not $0 to close. Ask about seller concessions in your offer.
Write a strong offer. Some sellers worry VA loans are harder to close. A well-prepared offer and an agent who knows the VA process answers that worry before it costs you the house.
Plan for the VA appraisal. The appraiser checks value and the VA's minimum property requirements (safe, sound, sanitary). Knowing what they look for helps you choose homes that will pass.
Where military buyers are looking on the Front Range
Buckley Space Force Base sits in Aurora. Fort Carson, Peterson Space Force Base, Schriever Space Force Base and the Air Force Academy are in the Colorado Springs area. Castle Rock and Douglas County sit between the two on I-25, which makes them worth a look if your next assignment could take you either way.
Let's talk through your benefit
Every VA buyer's situation is different: entitlement, disability rating, PCS timing. Book a free consult call and I'll help you build a plan.
Book a free consult · 720-573-2065 · travis@marschnerhomes.com
Funding fee rates and tax rules can change. Confirm current figures with your lender and VA.gov before you buy.
Travis Marschner, Broker Associate · Real Broker, LLC · 720-573-2065 · travis@marschnerhomes.com. Equal Housing Opportunity. This article is general information, not legal, tax or lending advice.