Is there a transfer tax on a Colorado Springs home purchase?

Only the state documentary fee of one cent per $100 of consideration under C.R.S. 39-13-102, about $47 on a $470,000 sale. There is no separate local transfer tax in Colorado Springs.

Why does homeowners insurance matter so much on an assumption here?

Colorado's Division of Insurance found hail is the largest driver of premiums in El Paso County, roughly half the bill. The seller's escrow reflects the seller's policy, and a new owner's quote can differ materially.

Does the seller's disabled veteran property tax exemption transfer with the loan?

No. Colorado's exemption of 50 percent of the first $200,000 of value belongs to the qualifying owner. A buyer who qualifies applies separately, with a July 1 deadline.

Why does Colorado Springs have so many assumable VA loans?

Fort Carson alone has about 23,700 active duty soldiers, 82 percent of whom live off post, plus Peterson, Schriever, the Air Force Academy and a large retiree population. Frequent rotations leave behind VA loans at earlier rates.

VA Assumable Homes in Colorado Springs, CO

Fort Carson, Peterson, Schriever and the Air Force Academy make this a dense VA market, with a near-zero transfer fee and hail insurance to budget for.

Four installations in one county

Few metros carry this much military population relative to their size. Fort Carson, south of the city, is home to the 4th Infantry Division and 10th Special Forces Group; the post's fact sheet counts about 23,700 active duty soldiers and 57,000 family members, and notes that 82 percent of soldiers and families live off post. Peterson Space Force Base and Schriever Space Force Base to the east fall under Space Base Delta 1, the U.S. Air Force Academy sits at the north end of town, and Cheyenne Mountain Space Force Station houses part of NORAD.

Fort Carson's off-post share is the number that matters for assumptions. Tens of thousands of soldiers buy in Fountain, Security-Widefield, and the southeast side, rotate every two to three years, and leave behind VA loans originated at whatever rate prevailed when they arrived. Peterson and Schriever families cluster in Falcon, Peyton and Cimarron Hills; Academy staff in Monument and the north.

The gap

El Paso County prices rose about 44 percent from the start of 2020 to their mid-2022 peak, per the FHFA index, and have drifted since. The Colorado Association of REALTORS reported an August 2026 single-family median of $470,000 for the county, down about 2 percent from a year earlier.

A Fountain home bought for $375,000 in 2021 with a VA loan might carry a balance near $345,000 and sell for around $470,000 today. The gap, roughly $125,000, is smaller than in Phoenix or Las Vegas because Colorado Springs appreciated less and has slipped a little from the peak. How much cash do I need covers funding it; the assumable mortgage rate gap covers when the numbers still favor the assumption.

Colorado costs: a documentary fee, hail, and two assessment rates

Transfer cost is close to nothing. Colorado has no transfer tax, only a state documentary fee of one cent per $100 of consideration under C.R.S. 39-13-102, collected by the El Paso County Clerk and Recorder. On a $470,000 sale that is $47.

Hail drives the insurance bill. Colorado's Division of Insurance found that hail, not wildfire, is the largest single driver of homeowner premiums in El Paso County, accounting for roughly half of the premium, as reported by Colorado Public Radio. An assumed loan's escrow reflects the seller's policy; a new owner's quote can differ materially, and an impact-rated roof changes it. Insurance belongs in every payment comparison here.

Property tax runs on two assessment rates. Colorado assesses residential property at one rate for school levies and another for local government, currently 7.05 percent and 6.80 percent for tax year 2026 per the state's homeowner brochure, applied to a value the county reappraises every two years. There is no sale-triggered reset the way Florida and Texas have; El Paso County's effective rate is roughly 0.4 percent of value.

Foreclosure runs through the public trustee, non-judicial in form but with a required court order under Rule 120 before any sale (C.R.S. 38-38-105).

The disabled veteran exemption

Colorado exempts 50 percent of the first $200,000 of actual value for veterans rated 100 percent permanent and total, and since 2025, under Amendment G, for those rated individually unemployable. The El Paso County Assessor and the Colorado Division of Veterans Affairs describe the July 1 application deadline. Like every state exemption, it belongs to the owner: a seller's exemption does not transfer with the loan, and a qualifying buyer applies on their own.

Entitlement, timelines, and finding them

The seller's VA entitlement stays with the loan unless an eligible veteran buyer substitutes their own; VA entitlement and substitution covers it. With four installations and a large retiree community, Colorado Springs sellers have one of the best chances anywhere of finding a buyer who can substitute. The 0.50 percent funding fee under 38 U.S.C. 3729 applies unless the buyer is exempt.

Fort Carson rotations and Academy assignment cycles produce moves on fixed dates, and servicer timelines of weeks to months do not bend to them. The assumption approval process and closing timeline: ASAP vs. deferred cover how to structure around that. For the search itself, how to find assumable mortgage listings covers the routes, and current VA assumable listings show the assumed rate and remaining balance together.

This is educational information, not financial, legal, or lending advice. Colorado tax treatment, exemptions, insurance, and loan terms vary by situation and change over time. Confirm exemption details with the El Paso County Assessor.