📡 VA SPOTLIGHT — PIKES PEAK EDITION
What agents need to know right now
VA rates dropped 14 basis points this week. The 30-year VA purchase rate now sits at 6.51% (6.56% APR), matching the biggest single-week move we've seen this year. That's good news for your military buyers heading into summer. (Source: Bankrate, May 23, 2026)
But there's a number worth watching: the spread between VA and conventional has compressed to just 5 basis points. A month ago it was 34. On paper, the rate advantage has nearly disappeared, which means agents need to shift the conversation. VA loans don't win on rate alone right now. They win on structure: no down payment, no PMI, and seller concession flexibility that conventional buyers can't match. For a buyer purchasing at $450,000 with nothing down, that's a savings of roughly $90,000 upfront compared to a 20% conventional down payment. The rate is almost the same. The entry point is not.
Know which buyers in your pipeline are VA-eligible. Now is the time to find out.
📊 MARKET PULSE
Pikes Peak by the numbers
Colorado Springs is the most veteran-dense major city in the United States — roughly one in three adult residents is active duty, a military retiree, or a veteran, anchored by five installations: Fort Carson, USAFA, Peterson Space Force Base, Schriever Space Force Base, and Cheyenne Mountain.
That density shows up in the numbers. VA loans account for roughly 10% of purchase originations nationally, and 29.3% here in El Paso County, nearly three times the national rate. Nationally, VA loan volume surged 26.8% in FY2025, with over 528,000 loans guaranteed. (Source: VA FY2025 Home Loans Lender Statistics) Colorado Springs is outpacing that trend. In this market, nearly one in three purchase transactions is a VA loan.
Inventory is up approximately 48% year over year, with median home prices ending 2025 at around $447,000, down 2.5% from the prior year. More inventory, lower prices, widening VA rate advantage — agents fluent in VA are positioned well heading into summer.
This Week in VA Rates — El Paso County
The 30-year VA purchase rate is averaging 6.51% (APR 6.56%) as of June 1, 2026, now running just 5 basis points below the 30-year conventional average of 6.56%. While the rate spread has compressed significantly, VA loans still win on structure — zero down and no PMI remain advantages no conventional loan can match. Rates dropped 14 basis points from last week; if you have a client who is pre-approved and actively shopping, the timing is favorable.
🏠 DEAL INTEL
A deal worth understanding
The following profile reflects a typical manual underwriting scenario consistent with VA Pamphlet 26-7 guidelines and published VA loan performance data. Details are composite and non-attributional.
The file: Active-duty E-6, stable military base pay plus BAH, credit score in the low 600s, debt-to-income ratio approaching 50%. On paper, a file many lenders redirect to FHA without a second look.
What manual underwriting actually requires at that DTI: Per VA Pamphlet 26-7, Chapter 4, a DTI between 40% front-end / 50% back-end requires two documented compensating factors. Residual income — the cash remaining after all monthly obligations, taxes, insurance, and a regional maintenance estimate — is the VA's primary qualifying metric, not DTI alone. (Source: VA Pamphlet 26-7, Chapter 4 — Credit Underwriting)
The compensating factors present: 24 months of on-time payment history, and residual income exceeding the VA's regional minimum by more than 20% — both recognized compensating factors under the handbook. The loan closed with zero down.
The agent's role: Knowing to call a VA-specialist lender before assuming the file was dead. That call is the difference between a closed transaction and a lost client.
This profile is based on published VA underwriting guidelines. Not a guarantee of loan approval. Individual results depend on specific file characteristics and lender overlays.
💼 THE BROKER ADVANTAGE
Why your borrower shouldn't shop for a VA rate online
Toward the end of May, the national average 30-year VA rate moved from 6.53% to 6.65% in a single week. Agents with active buyers felt that, and agents whose clients were price-shopping online felt it most, because by the time a DTC lender like Rocket updates their advertised rate and processes a new application, the market has already moved again.
Here's what most borrowers don't know: the rate advertised on a DTC lender's website is their rate — the only one they can offer, built on their own margin. A wholesale mortgage broker submits your client's file to a network of lenders who compete for that loan. Those lenders don't run national ad campaigns. They pass that margin into the rate instead.
That's the structural reason why a borrower who sees 6.65% on Bankrate can end up at 6.375% (or better) through a broker on the same day. Same file. Same closing date. Better execution.
On a $400,000 VA loan, that difference is roughly $65 per month. $780 per year. Over 30 years, more than $23,000.
Your veteran clients earned the VA benefit. Make sure they're getting the best execution on it.
💹 RATE TABLE
Current VA Loan Rates — El Paso County
Loan Type | Interest Rate | APR | Notes |
|---|---|---|---|
30-Year Fixed VA Purchase | 6.51% | 6.56% | No PMI, Zero Down |
30-Year Refi VA | 6.51% | 6.55% | Streamline refi, no appraisal required |
30-Year Conventional | 6.56% | 6.63% | For comparison Purposes Only |
Rates reflect national averages as of June 1, 2026 per Bankrate's weekly lender survey. 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 your buyer’s file looks complicated
The situation: Your client is a veteran. Credit in the low 600s, DTI near 50%. The listing agent is already skeptical. You're not sure this one closes.
What most agents say: "Let's try FHA and see what happens."
What you should say instead:
"Before we pivot, let me have my VA lender take a look. VA manual underwriting doesn't use the same rulebook as automated underwriting, it's built around the full financial picture of a military borrower. The VA doesn't set a hard DTI ceiling. What matters most is residual income: how much cash is left each month after all obligations are paid. I've seen files that wouldn't clear conventional or FHA close clean through VA manual underwriting. One call before we assume anything."
Why this works: Per VA Pamphlet 26-7, Chapter 4, VA manual underwriting evaluates residual income as its primary qualifying metric — not DTI alone. A borrower at 50% DTI with strong residual income and two documented compensating factors can qualify. Recognized compensating factors include: 12–24 months of on-time payment history, residual income exceeding the VA regional minimum by 20% or more, low payment shock, and significant liquid reserves. (Source: VA Pamphlet 26-7, Chapter 4)
The VA built this underwriting path specifically for borrowers whose financial story doesn't fit a score-driven system. Your veteran clients earned this benefit. Knowing when to call for a manual review is how you protect the transaction.
Questions about a specific file? Call or text: (719) 722-4278
Use this word-for-word or make it your own. The goal is confidence at the listing table.
👋 UNTIL NEXT MONTH
If this issue helped you see one VA file differently, it did its job. Forward it to one agent in your office who works with military buyers.
— 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.