Colorado has one of the largest veteran and active military populations in the country, with major installations including Fort Carson, Peterson Space Force Base, Schriever, Buckley, and the Air Force Academy. Yet VA loans are regularly underused: often because veterans aren't sure whether they qualify, or assume the process is more complicated than it is.
Who is eligible for a VA loan in Colorado?
| Service category | Requirement |
|---|---|
| Active duty | 90 consecutive days of active service during wartime, or 181 days during peacetime |
| Veterans | Separated from active duty after meeting service requirements, discharged under conditions other than dishonorable |
| National Guard and Reserves | 6 years of service in the Selected Reserve or National Guard, or 90 days of active duty under Title 10 orders |
| Surviving spouses | Unremarried surviving spouses of veterans who died in service or from a service-connected disability, or spouses of veterans listed as MIA or POW |
Many Colorado Guard and Reserve members were activated for COVID-19 response missions beginning in 2020. If your activation was under Title 10 federal orders for 90 or more days, that service counts toward VA loan eligibility even if you did not deploy overseas. Many Guard and Reserve members in Colorado qualify under this provision without realizing it.
What is a Certificate of Eligibility and how do you get one?
A Certificate of Eligibility (COE) is the VA's official confirmation that you meet the service requirements for a VA-backed home loan. Lenders require it before approving a VA loan. Getting one is simpler than most veterans expect.
- Through your lender: Most VA-approved lenders can access the VA's online system and pull your COE in minutes as part of the pre-approval process. This is the fastest option.
- Through the VA directly: Request your COE through VA.gov, log in, and it's usually available immediately if your service records are in the VA system.
- By mail: Complete VA Form 26-1880 and mail it to the VA Eligibility Center. Processing takes several weeks: only use this if the other options don't work.
Understanding VA entitlement
Full entitlement: If you've never used a VA loan, or if your previous VA loan is paid off and the home is sold, you have full entitlement. With full entitlement there is no maximum loan amount and no down payment required regardless of purchase price.
Remaining entitlement: If you currently have an active VA loan, your entitlement is partially used. You can still get a second VA loan, but county loan limits may apply. In most Colorado counties the 2026 conforming loan limit is $806,500.
The funding fee exemption: worth checking
The VA funding fee is a one-time cost charged on most VA loans to help fund the program. For first-time VA loan users with no down payment, the fee is 2.15% of the loan amount. On a $600,000 purchase that's $12,900.
However, veterans with a service-connected disability rating of 10% or more are completely exempt from the funding fee. This exemption also applies to veterans receiving VA compensation for a disability, surviving spouses receiving dependency and indemnity compensation, and active duty service members with a Purple Heart awarded before closing.
If you have any disability rating from the VA, confirm your exemption status before closing. Paying the funding fee when you're exempt is a mistake that's avoidable with a 10-minute check.
VA closing costs in Colorado: what to expect
One advantage of VA loans that often goes unmentioned: the VA limits the fees lenders can charge. Lenders cannot charge VA borrowers for attorney fees, document preparation fees, settlement charges, or prepayment penalties. What you can expect to pay includes the appraisal fee, credit report, title insurance, recording fees, and prepaid items like homeowners insurance and property tax escrow. Total VA closing costs in Colorado typically run $8,000-$14,000 depending on purchase price, and can often be reduced through seller concessions.
Restoring entitlement after using a VA loan
The VA benefit is reusable. Many veterans use it once and assume it's gone. It's not.
- Sell the home and pay off the VA loan: Your full entitlement is automatically restored.
- Have another veteran assume your loan: If a qualified veteran assumes your VA loan, your entitlement can be restored if you apply for it.
- Pay off the loan without selling: You can apply to have entitlement restored even if you keep the property.
Chris Cartwright is a VA-approved mortgage broker serving veterans and active military families across Colorado, Washington, Texas, California, Arizona, and Florida. He handles COE requests as part of the pre-approval process and confirms funding fee exemption status for every VA borrower before closing.
Not sure if you qualify for a VA loan in Colorado?
A 15-minute call is all it takes to confirm your eligibility, check your entitlement status, and see what a VA purchase would look like for your situation.
VA loan eligibility requirements are subject to change. This content reflects VA guidelines as of May 2026. Contact a VA-approved lender for current eligibility confirmation. All loans subject to credit approval. Equal Housing Lender.