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. If you get VA disability pay, the funding fee is waived. VA itself asks for no down payment in most cases. If you agree to pay more than VA’s value for the home, you must pay the difference in cash, and it cannot be borrowed. If part of your VA benefit is still tied up in another loan (partial entitlement), a lender may ask for a down payment.
Last updated: October 9, 2026
Guidance reference: VA Pamphlet 26-7, Ch. 3 and 8 (VA updated July 9, 2026); Ch. 4 (VA updated August 26, 2026); VA Circular 26-25-10 (December 1, 2025)
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.
As of Q3 2026 (September 2026): VA sets no minimum credit score. Any score floor is an extra rule a lender adds (VA Pamphlet 26-7, Ch. 4; 38 CFR 36.4340). VA uses 41% as a check point, not a limit, for how much of your monthly income goes to debt payments (your debt-to-income ratio). Above 41%, we take a closer look, unless the money left over each month after your bills is at least 20% above VA’s chart. If not, a supervisor can still approve the loan with a signed note listing your strengths (VA Pamphlet 26-7, Ch. 4). With full entitlement (your full VA home loan benefit), there is no VA loan limit. VA asks for no down payment in most cases, but if the price is above VA’s value for the home, you pay the difference in cash. If part of your benefit is still in use (partial entitlement), it is measured against your county’s 2026 loan limit: $832,750 in most counties and higher in some high-cost counties (VA.gov; FHFA, November 25, 2025). The funding fee (a one-time VA fee) is 2.15% on a first-use purchase with less than 5% down and 3.3% on later use with less than 5% down. On an IRRRL (VA’s refinance to lower your rate), it is 0.5% (VA.gov, effective April 7, 2023).
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 approval 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 mainly comes up in two cases. First, if the home appraises for less than the price, you pay the gap in cash from your own money. That is VA’s own rule, even with your full VA benefit. Second, part of your VA benefit (your entitlement) may still be tied up, usually by an active VA loan. Then a lender may ask for a small down payment above a certain loan amount. We map your VA benefit 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?
Sometimes. If the home appraises for less than the price, you pay the gap in cash from your own money, even with your full VA benefit. A down payment can also come up if part of your benefit is still tied up, usually by an active VA loan. Then a lender, not VA, may ask for a small down payment above a certain amount. We map your VA benefit (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 October 9, 2026.
What “No Overlays” Means
An overlay is a credit rule a lender adds on top of VA’s. We don’t add them — we underwrite to VA guidelines. Separate from underwriting, every VA loan must also be eligible for sale or securitization, and Ginnie Mae sets pooling requirements that apply to all lenders and that no lender can waive. Refinances in particular carry seasoning requirements under Ginnie Mae that are broader than VA’s. We’ll tell you upfront if one applies to you.
Where We Stand on VA Credit
The VA does not set a minimum credit score. Most lenders add one anyway. That extra rule is called an overlay, and it is the reason a veteran gets told no on a loan the VA itself would have allowed.
We do not add one. No minimum score. No overlay.
Late payments in the last 12 months are not an automatic no either, and that is not limited to your mortgage. If the lates trace to a real hardship you can document, and you can show the accounts are current and have stayed current, we will still look at the file. Isolated lates count on their own. Most lenders default to no here. We do not.
Here, a person reviews your file by hand. That is what we do all day. If another lender already turned you down, it may have been their own extra rule, not a VA rule. Get a second look.
Source: JD.Mortgage Team at PRMG, VA Loan With No Down Payment in Colorado Springs, updated October 2026, https://jd.mortgage/va-loan-no-down-payment-colorado-springs/