📡 VA SPOTLIGHT — PIKES PEAK EDITION
What agents need to know right now
A veteran selling a home with a 2.75% VA loan is sitting on something more valuable than square footage. VA loans are assumable, meaning a qualified buyer, veteran or not, can take over the seller's exact rate, balance, and remaining term instead of originating a new loan at today's pricing.
Freddie Mac's Primary Mortgage Market Survey put the 30-year rate at 6.66% for the week of July 30, well above what many VA borrowers locked in during 2020 through 2022, when government-backed loans often closed between 2.5% and 3.5%. On a $340,000 balance in that range, assuming instead of financing fresh today saves roughly $700 a month, close to $8,400 a year. Most MLSs have no clean way to flag an assumable loan, and most listing agents never think to ask. A 2.75% assumable balance is a different listing than the one next door, and should be priced accordingly.
The mechanics: the assumption funding fee runs 0.5% of the loan balance, versus 2.15% or more on a fresh VA purchase loan. The buyer covers the equity gap between sale price and remaining balance, in cash or a second loan. The seller needs a formal Release of Liability before closing, without one, they stay on the hook if the new buyer defaults down the road. And unless the buyer is a veteran who substitutes their own entitlement, the seller's VA entitlement stays tied to that property until the loan is paid off.
None of this moves fast. The servicer controls the timeline, and the buyer's credit and income get underwritten just like a standard purchase. If a listing has an assumable rate worth advertising, build the extra weeks into the contract.
📊 MARKET PULSE
El Paso County has a "moderate shortage" of homes for middle-income buyers
That's the finding of the 2026 Housing Mismatch Report from the National Association of Realtors and Realtor.com, released in May and covered locally by the Colorado Springs Gazette in late July. As of March, listings here skew toward higher price points than many local incomes support, even as overall affordability has improved slightly compared to a year ago.
Zero-down VA financing is one of the few tools that closes a gap like this for a buyer who qualifies. A veteran or service member household stretched by El Paso County's price tier doesn't need to clear a 20% down payment to compete. Worth mentioning the next time a client assumes their VA buyer is priced out of a listing.
This Week in VA Rates: El Paso County
30-Year VA Purchase: 6.49% (flat from last week)
30-Year VA Refinance: 6.28% (up from 6.26% last week)
30-Year Conventional: 6.66% Freddie Mac PMMS, Week of 7/30/26
NEW: IRRRL Viability (hat-tip to James Tabur, Your Castle Real Estate)
Based on current VA Refi rate of 6.28%, the estimated IRRRL minimum viable existing mortgage threshold is around 7.39%. In other words, if your existing mortgage rate is 7.39% or higher, a VA IRRRL would meet the VA’s Net Tangible Benefit thresholds. This assumes 2% closing costs + VA funding fee of 0.5%, and that the borrower does not extend the existing loan term. For model assumptions and to personalize borrower variables, use the IRRL Viability calculator at my website HERE.
Source: Bankrate, August 1, 2026, and Freddie Mac
🏠 THE FINE PRINT
Assumption fees could still double, but nothing's moved yet
H.R. 6047 remains where it was in July: sitting in the Senate Veterans' Affairs Committee since being referred there June 2. If it passes as written, the VA loan assumption fee doubles from 0.5% to 1.0%, and the IRRRL refinance fee jumps from 0.5% to 1.42%.
No vote has been scheduled. For now, the numbers in this issue's assumption breakdown still hold. Worth checking back before quoting a client on assumption costs a few months from now.
Source: Congress.gov, H.R. 6047 text
💼 THE BROKER ADVANTAGE
The DTI ceiling that isn't actually a ceiling
VA loans don't have a hard debt-to-income cap. That surprises most agents, and it surprises a lot of buyers who got told no somewhere else. VA guidance treats residual income, what's left over each month after the mortgage and other obligations, as the primary qualifying metric, not DTI. A file running above 41% DTI can still close if the residual income numbers hold up and the required compensating factors are documented. Source: VA Pamphlet 26-7, Chapter 4
Direct-to-consumer lenders often don't get there. Their systems run on automated underwriting engines with hard-coded DTI ceilings, and a file that trips the ceiling gets an automatic decline before a human ever pulls up the residual income worksheet. Manual underwriting takes more time and more staff, so high-volume shops route around it instead of through it.
If your buyer got turned down for DTI somewhere else, that's not necessarily the end of the file. It might just mean nobody ran the numbers the way VA actually asks lenders to run them.
💹 RATE TABLE
Current VA Loan Rates — El Paso County
Loan Type | Interest Rate | APR | Notes |
|---|---|---|---|
30-Year Fixed VA Purchase | 6.49% | 6.53% | No PMI, Zero-down |
30-Year Fixed VA Refinance | 6.28% | 6.31% | Streamline refi; No appraisal required |
30-Year Fixed Conventional | 6.66% | — | Freddie Mac PMMS, 7/30/26 |
VA rates reflect national averages as of Aug 1, 2026 per Bankrate's weekly lender survey. Conventional figure per Freddie Mac's Primary Mortgage Market Survey, week ending July 30, 2026. Conventional rates assume 20% down and excellent credit. Rates change daily and are not a commitment to lend. Your clients' actual rate will depend on credit profile, loan amount, property type, and individual file characteristics. Contact Gene for current pricing.
Gene Richter, NMLS #2806488 · PBT Bancorp, NMLS #257781
🏠 Equal Housing Opportunity
🗣️ SCRIPT OF THE MONTH
When a Buyer Hesitates to Sign a Buyer-Broker Agreement
Since August 2024, VA Circular 26-24-14 has let VA borrowers pay reasonable and customary buyer-broker fees directly, so a veteran isn't automatically stuck without representation just because a seller isn't offering compensation. Most buyers don't know that rule exists, which is exactly why this conversation trips people up.
The situation: Your VA buyer is nervous about signing an exclusive buyer-broker agreement because they've heard they might end up paying your commission out of pocket.
What most agents say: "Don't worry, most sellers still cover it, you probably won't have to pay anything."
What you should say instead: "Let's talk about both scenarios. If the seller offers buyer-agent compensation, that's how you're covered. If they don't, VA actually changed its rules back in 2024 to let veterans pay their agent directly as part of the loan, so you're not stuck choosing between representation and your financing. I'd rather you know that now than find out mid-negotiation."
Why this works: The first version avoids the real question and hopes it doesn't come up. The second gives the buyer an actual answer, backed by a specific rule change they can verify, and positions you as someone who explains the mechanics instead of glossing over them.
Source: VA Circular 26-24-14
Use this word-for-word or make it your own. The goal is confidence at the listing table.
👋 UNTIL NEXT MONTH
If one of your active listings has an assumable VA loan sitting in the file, that's worth a phone call before your next open house. Forward this to an agent in your office who could use it.
— Gene Richter, Licensed Mortgage Loan Originator NMLS #2806488 · PBT Bancorp NMLS #257781 · Colorado Springs, CO (719) 722-4278 · VASpotlight.com
🏠 Equal Housing Opportunity | This newsletter is intended for real estate professionals and does not constitute a consumer credit advertisement. Rates shown are national averages for informational purposes only and are not a commitment to lend. Not all borrowers will qualify. This content does not constitute tax, legal, or financial advice — consult a qualified professional for guidance specific to your situation. Gene Richter is a licensed Mortgage Loan Originator (NMLS #2806488) operating through PBT Bancorp (NMLS #257781), licensed to originate mortgage loans in Colorado.