If you've served in the U.S. military, you've earned one of the most valuable financial benefits available to any homebuyer — the VA home loan. Yet many veterans either don't know the full extent of their benefit, or assume they don't qualify. At Diversified Lending of Colorado, we've been helping Colorado Springs veterans and active-duty service members use their VA benefit since 2005.
Here's a plain-language breakdown of what the VA loan actually offers — and why it's often the smartest financing choice for those who've earned it.
No Down Payment Required
One of the most powerful advantages of the VA loan is the ability to finance 100% of the home's purchase price — no down payment needed. For most loan types, saving 5–20% down is a major barrier to homeownership. VA-eligible borrowers can skip that hurdle entirely and get into a home sooner.
Key Points
- No down payment on loans up to the conforming loan limit (and beyond with sufficient entitlement)
- Funding fee may be financed into the loan — no large out-of-pocket cost at closing
- Surviving spouses of veterans killed in action may be exempt from the funding fee entirely
No Private Mortgage Insurance (PMI)
Conventional loans require PMI when you put less than 20% down — typically adding $100–$300 per month to your payment. FHA loans require mortgage insurance for the life of the loan. VA loans have neither. That savings adds up to thousands of dollars over the life of your mortgage.
Key Points
- No monthly PMI — ever, regardless of your down payment amount
- No annual mortgage insurance premium like FHA requires
- Lower monthly payment compared to FHA or conventional with less than 20% down
Competitive Interest Rates
Because the VA guarantees a portion of each loan, lenders take on less risk — and pass those savings on to borrowers in the form of lower interest rates. VA loan rates are consistently among the lowest available for any loan type, often beating conventional rates by 0.5% or more.
Key Points
- VA rates are typically lower than conventional rates for the same credit profile
- Even a 0.5% rate difference saves thousands over a 30-year loan
- Rate locks are available to protect you while your loan is in process
Flexible Credit Requirements
The VA doesn't set a minimum credit score, though individual lenders do. In practice, VA loans are more forgiving than conventional loans for borrowers with past credit challenges. If you've had a bankruptcy, foreclosure, or short sale, you may still qualify sooner than you think.
Key Points
- Most VA lenders work with scores as low as 580–620
- VA underwriters look at the full picture — not just the score
- Past financial hardship related to military service is often considered favorably
Limits on Closing Costs
The VA limits the fees lenders can charge VA borrowers. Certain closing costs — like attorney fees, brokerage fees, and prepayment penalties — are simply not allowed. Sellers can also pay all of your VA closing costs, making it possible to close with very little out of pocket.
Key Points
- VA non-allowable fees cannot be charged to the borrower
- Sellers can pay up to 4% of the loan amount in concessions
- The VA funding fee can be rolled into the loan to reduce upfront costs
Reusable — For Life
Your VA benefit doesn't expire and doesn't disappear after you use it once. You can use it multiple times throughout your life — to buy a new primary residence, refinance an existing VA loan, or even restore your entitlement after selling a previous home.
Key Points
- Use your VA benefit again after selling your previous VA-financed home
- VA Interest Rate Reduction Refinance Loan (IRRRL) lets you refinance with minimal paperwork
- Eligible surviving spouses retain the VA loan benefit
Who Is Eligible for a VA Loan?
VA loan eligibility is based on your service history. You'll need a Certificate of Eligibility (COE) — something we can help you obtain as part of the loan process. Here's a general overview of who qualifies:
| Service Category | General Requirement |
|---|---|
| Active Duty | 90 continuous days of active service |
| Veterans | Varies by era — generally 90–181 days depending on when you served |
| National Guard / Reserves | 6 years of service, or 90 days active duty under Title 10 |
| Surviving Spouses | Spouse of a veteran who died in service or from a service-connected disability |
* Eligibility requirements vary. Contact us for a personalized review of your service record and benefit status.
Colorado Springs has one of the highest concentrations of active-duty military and veterans in the country — Fort Carson, Peterson Space Force Base, Schriever, and NORAD are all right here. We understand the unique financial situations that come with military life: PCS moves, deployment income, BAH, and VA entitlement restoration. We're here to make the process simple.
You've Earned This Benefit
Let's Put Your VA Benefit to Work
Jerry personally reviews every VA file and responds within 1 business day. No call centers, no runaround — just honest guidance from a Colorado Springs mortgage broker who's been serving veterans since 2005.