I get variations of this question a lot! The short answer is, “Yes, in Colorado Springs and with a VA loan, it is possible (other areas, please consult your local Realtors!).”
Longer answer: there are three costs to a home buyer generally in the purchase process.
1. Earnest money: this is “good faith” money a buyer puts up to compensate the seller if they (the buyer) breaches contract for a non-protected reason. I’ve had a lot of success w/$500 earnest money in town. When that hasn’t worked, we try $750 or $1,000. Note: coordinate with your lender but you can often get this money back at closing.
2. Inspection costs: a home inspection costs about $280 in Colorado Springs. This is a sunk cost; even if you choose not to continue with the purchase, this isn’t reimbursable in the normal course of a purchase.
3. Appraisal: there is an appraisal cost that some lenders will charge upfront, others charge as part of the loan costs.
In sum, it is entirely possible to buy a home for an upfront cost of $780-$1280, depending on the lender and the earnest money required…and that earnest money can often come back to you.
Questions, please give me a call! If you’re looking to buy or sell in Colorado Springs or Denver, I’d be honored to earn your business.