A VA loan in Colorado Springs needs no down payment with full entitlement, and it charges no monthly mortgage insurance. That is the core benefit, and in a market where prices have climbed past the mid $400,000s, it is worth more here, not less. The JD.Mortgage Team writes no-down VA loans for veterans and active-duty buyers across Fort Carson, Peterson, Schriever, and the Air Force Academy. With full entitlement there is also no VA loan limit, so your income, not a cap or a down payment, sets the ceiling.
Here is the short version. Zero down does not mean zero cost. You still have closing costs, but a seller or builder can cover much of that, and the funding fee is waived if you draw VA disability. Down payment only comes into play if you are using remaining or partial entitlement.
What No Down Payment Actually Means
Full entitlement means the VA backs your loan enough that no down payment is required. Most first-time VA buyers, and many repeat buyers who paid off a prior VA loan, have full entitlement. The benefit is simple but powerful: you finance the full purchase price, keep your cash, and pay no monthly mortgage insurance, which an FHA or low-down conventional loan would charge.
Why $0 Down Goes Further in Colorado Springs
No Down Payment
Full entitlement finances the whole purchase price. You keep your savings for moving and reserves.
No Mortgage Insurance
VA never charges monthly mortgage insurance, so your payment is lower than FHA or low-down conventional.
No Loan Limit
With full entitlement there is no VA cap in El Paso County, so higher local prices stay $0 down.
Seller Can Cover Costs
A seller or builder can pay your closing costs plus up to 4% in concessions, lowering cash to close further.
Funding Fee Waiver
If you draw VA disability compensation, the funding fee is waived at any rating percentage.
Keep Your Cash
No down payment means reserves stay in your pocket for a PCS, an emergency, or furnishing the home.
What $0 Down Still Costs
No down payment is not no cost. You still have closing costs, prepaids for taxes and insurance, and, unless you are exempt, the VA funding fee, which can be financed into the loan. The good news is most of this can be covered by a seller or builder. See how to aim that help on our VA seller concessions breakdown.
How We Set Up a No-Down VA Purchase
Confirm full entitlement
We pull your Certificate of Eligibility and confirm you have full entitlement, which is what makes $0 down possible.
Check the funding fee
If you draw VA disability, the fee is waived. If not, we show you the cost and whether to finance it in.
Negotiate closing costs to the seller
We structure the offer so the seller or builder covers as much of the cash to close as the deal allows.
Close with little or nothing down
Done right, many Colorado Springs veterans close with no down payment and minimal cash out of pocket.
When a Down Payment Might Apply
A down payment only comes up with remaining or partial entitlement, usually when you still have an active VA loan. In that case, a small down payment may be needed above a certain loan amount. We map your entitlement first so you know your true $0 down ceiling before you shop.
Frequently Asked Questions
Can I buy a home in Colorado Springs with no down payment?
Yes, with a VA loan and full entitlement. It finances the full purchase price with no down payment and no monthly mortgage insurance. Most first-time VA buyers and many repeat buyers have full entitlement.
Does a no-down VA loan have mortgage insurance?
No. VA loans carry no monthly mortgage insurance, even with no down payment. That is a major advantage over FHA and low-down conventional loans, which both charge it.
What costs do I still pay with $0 down?
You still have closing costs, prepaid taxes and insurance, and, unless exempt, the VA funding fee. A seller or builder can cover much of this, and the funding fee can be financed into the loan.
Is the VA funding fee waived for disabled veterans?
Yes. Any veteran receiving VA disability compensation is exempt from the funding fee at any rating percentage. We confirm your status with your VA disability rating letter.
Is there a loan limit on a no-down VA loan in Colorado Springs?
No. With full entitlement there is no VA loan limit in El Paso County. You can buy a higher-priced home with no down payment as long as your income and residual income support it.
Will I ever need a down payment on a VA loan?
Only with remaining or partial entitlement, usually when you still have an active VA loan. Above a certain amount, a small down payment may apply. We map your entitlement before you shop.
Can the seller pay my closing costs on a VA loan?
Yes. A seller can pay your normal closing costs and add up to 4% in concessions. Structured well, many no-down VA buyers close with little cash out of pocket.
Should I put money down even if I do not have to?
Sometimes a small down payment lowers your payment or reduces the funding fee, but for many buyers keeping cash in reserve is the better move. We run both so you can decide.
More on VA Loans in Colorado Springs
Colorado Springs VA Loan Hub
The full no-overlay VA program for the Colorado Springs market.
How to Afford a VA Loan
Using BAH and concessions to lower your real qualifying payment.
VA Seller Concessions: The 4% Rule
How a seller or builder can cover your cash to close.
VA Home Loans Hub
Eligibility, funding fee, entitlement, and no-overlay underwriting nationwide.
Written by J.D. Peck.
Area Manager and Mortgage Loan Originator with The JD.Mortgage Team at Paramount Residential Mortgage Group (NMLS #75243). NMLS #314883. Based in Colorado Springs, Colorado. 25+ years of mortgage experience, 3,100+ loans closed, Scotsman Guide Top Originator 2026. Lending in 49 states. Last updated June 26, 2026.