VA & Military Home Buying in Littleton and Denver Metro

At Ohana Style Realty, ohana means family, and that's how we treat the people we work with. Buying a home with a VA loan comes with its own vocabulary: COE, entitlement, funding fee, MPRs, Notice of Value. This page walks through the parts that matter most, in plain language, so you can walk into your home search feeling prepared.

Ohana Style Realty is a real estate brokerage, not a lender. Your lender and the VA decide eligibility, rates and approval. Our job is to help you buy the right home, with a solid offer and a smooth path to closing.

Many eligible buyers can use a VA loan with no down payment. VA says its purchase loan often offers no down payment, as long as the sales price isn't higher than the appraised value.

"Potentially" is the important word.

What zero down depends on

• Your lender's approval Your lender decides how much you can borrow based on your credit, income, debts and its own guidelines. VA has no minimum credit score, but many lenders do.
• Your remaining entitlement With full entitlement, VA sets no loan limit, as long as you can afford the loan and the appraisal supports the price. If you've used some entitlement, lenders generally want your remaining entitlement plus your down payment to cover 25% of the loan.
• The appraisal A VA loan is limited to the lower of the appraised value or the purchase price. If the home appraises low, you may need to bring cash or renegotiate.

You can also choose to put money down. A larger down payment can lower your VA funding fee (see the next section).

After you have a contract, your lender requests a VA appraisal. Here is what to expect.

• What happens A VA-approved appraiser estimates the home's market value and checks the Minimum Property Requirements (MPRs). VA then issues a Notice of Value (NOV) showing the home's reasonable value and any required repairs.
• What MPRs are MPRs are VA's baseline standards: the home should be safe, structurally sound and sanitary. Required repairs are generally made before the VA guaranty.
• An appraisal is not an inspection VA says an appraisal "isn't a home inspection or a guaranty of value." VA doesn't require an inspection but strongly recommends one.
• What Tidewater means If the value may come in below the price, the appraiser notifies the point of contact on the request and allows two business days for more comparable sales data. The appraiser can't discuss the expected value.

If the value still comes in low

• Reconsideration of Value Your lender can ask VA to review the value with supporting sales data. VA staff aim to review within five business days.
• Renegotiate You and the seller can adjust the price.
• Bring cash You can pay the difference between the value and the price.
• VA escape clause You can cancel without losing your earnest money if the price is above VA's reasonable value.

In some situations a Veteran can request a waiver of certain repairs, with the lender's concurrence, if the home remains habitable. Safety-related items can't be waived.

A VA-guaranteed loan is assumable. A qualified buyer, including a non-Veteran, may be able to take over a seller's existing VA loan instead of getting a new one. It is not automatic, and not every seller has an assumable VA loan.

Two ways an assumption can work

• Without substitution of entitlement The seller is released from the mortgage payment if the assumption is approved. The seller's VA entitlement stays tied to the loan until it is paid in full.
• With substitution of entitlement (SOE) The buyer is an eligible Veteran who will occupy the home and has enough entitlement. Their entitlement replaces the seller's, and the seller's entitlement is restored.

What approval requires

1. The loan is current. The loan must be current at closing.
2. The buyer qualifies. The buyer must take on full liability and meet VA's credit and income underwriting standards.
3. The servicer decides. A servicer or holder with automatic authority must decide within 45 calendar days of a complete application. In other cases, VA prior approval is required, and a denial can be appealed to VA.

Extra requirements for SOE

• A COE The buyer must be eligible for a VA Certificate of Eligibility.
• Enough entitlement The buyer needs at least as much entitlement available as the amount originally used on the loan being assumed.
• Occupancy The buyer must intend to occupy the home and certify it (VA Form 26-8106).

Costs and equity

• Funding fee A 0.5% VA funding fee generally applies to an assumption, unless the buyer is exempt.
• Processing fee and Assumption Locality Variance The servicer may charge a processing fee of up to $300 (up to $250 plus the cost of any credit report if it does not have automatic authority). Separately, VA lets the servicer add an "Assumption Locality Variance"; for Colorado, which VA places in its "West" region, it is $463 under VA Circular 26-24-5, Exhibit A. The $463 variance is a separate charge in addition to the processing fee, not part of it. Other listed charges, such as credit report, title and recording costs, may also apply.
• Equity The seller's equity stays with the loan. Buyer and seller negotiate how the gap between the price and the loan balance is covered.

Sources: VA Circular 26-23-10 and Change 1 (fees), VA Circular 26-24-5 (Exhibit A), VA Form 26-10291, VA purchase loan page and funding fee page. Checked October 30, 2026.

Planning to assume a loan, or buying a new home and want to keep or restore entitlement? Talk with a VA-experienced lender early. Loan terms and approval are decided by the servicer and VA, not by Ohana Style Realty.

If this is your first home, or your first in Colorado, here is a simple order of operations.

1. Check your eligibility and request your COE. You can request it online through VA, through a lender, or by mail.
2. Look at your credit and budget. VA has no minimum credit score, but lenders often do.
3. Compare lenders. VA-approved lenders set their own rates, points and fees. Compare Loan Estimates from more than one.
4. Understand your full costs. Plan for the funding fee (if it applies), closing costs, homeowners insurance, property taxes, any HOA dues and moving costs.
5. Plan for a home inspection. It shows you the home's condition beyond what a VA appraisal looks at.
6. Talk with a local agent early. An agent can explain how the Denver metro market works and help keep your VA timeline and contract deadlines in view.

Your VA home loan benefit can be used more than once in some situations. For example, you may be able to reuse it after a prior VA loan is paid in full and the home is sold. See VA's eligibility page for the rules.

A Colorado note for some disabled Veterans

Colorado offers a property tax exemption for some Veterans with a service-connected disability. If you qualify and apply, 50% of the first $200,000 of the actual value of your primary residence is exempt from property tax.

• Who may qualify A Veteran who served on active duty, was honorably discharged, and has a VA service-connected disability rated 100% permanent (including through disability retirement benefits) or has been granted individual unemployability status.
• Home requirements The applicant (or their spouse) must be the owner of record and occupy the home as a primary residence as of January 1 of the year of application. Limited exceptions apply.
• How to apply Applications go to the county assessor where the home is located, with a recent VA disability award letter. The window runs from January 1 to July 1, with late applications possible through August 1 but without appeal rights if denied.
• Others who may qualify Gold Star spouses, and surviving spouses of Veterans who previously received the exemption, have their own requirements.

Sources: Colorado Division of Property Taxation, Veteran with a Disability and Gold Star Exemptions and Colorado Division of Veterans Affairs, Property Tax Exemption. Checked October 30, 2026.

General information, not tax advice. Confirm eligibility and deadlines with your county assessor or a tax professional.

Dallas Hidalgo is the Owner, Founder and Managing Broker of Ohana Style Realty. He has owned and operated the brokerage since 2017 and is a REALTOR®.

What working with us covers

• Property search and showings We learn what you need and help you find homes that fit.
• Offer strategy We talk through price, concessions, deadlines and risk before you offer.
• Negotiation We negotiate price and terms on your behalf.
• Guidance to closing We guide you through the home buying process, from your first showing to closing day.

About lenders

Ohana Style Realty is not a lender and does not make loans. You choose your own VA-approved lender. If you ask, we can share the names of lenders that others have worked with.