VA Home Loan Guide for Veterans in The Colony, Texas
The Colony, known as the “City by the Lake,” combines waterfront living on Lewisville Lake with suburban convenience and easy access to the Dallas–Fort Worth metroplex. Veterans and military families appreciate its tight-knit neighborhoods, strong schools, and community-focused lifestyle.
If you’re eligible for a VA home loan, you can purchase a home in The Colony with zero down, no PMI, and competitive interest rates. Local lenders are well-versed in VA financing and will assist you from pre-approval to closing.
This guide covers the 2025 housing market in The Colony, VA loan limits, FAQs, top veteran-friendly neighborhoods, and essential resources—everything Veterans need to confidently use their benefits here.
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In this Article
The Colony Housing Market Outlook for 2025
As of 2025, the average home value in The Colony is approximately $426,300, with median sold prices around $427,900 and median listing prices near $507,650. Homes in The Colony typically go under contract in less than 20 days, reflecting strong demand and limited inventory. Compared to neighboring cities like Plano and Frisco, The Colony continues to offer competitive pricing and access to Lewisville Lake living.
The cost of living index for The Colony is around 99–101, right in line with the national average. Housing costs are moderately higher than other suburbs but balanced by a median household income of over $111,000. With a population of approximately 45,000, The Colony offers a stable and growing housing market that remains attractive to VA buyers in North Texas.
The Colony vs. Nearby Cities
| City | Median Home Price | Cost of Living Index | Population |
|---|---|---|---|
| The Colony | $427,900 | ~99 | ~45,000 |
| Frisco | $690,000 | ~106 | ~215,000 |
| Plano | $376,000 | ~109 | ~290,000 |
| Carrollton | $340,000 | ~103 | ~139,000 |
2025 VA Loan Limits for The Colony
The Colony falls within Denton County, which is classified as a standard-cost VA loan area. The 2025 VA loan limit in The Colony is $806,500. This means eligible Veterans with full entitlement can finance a home up to this amount with no down payment required. If you’re purchasing above that threshold, you’ll only need to cover a down payment on the excess difference.
Why Use a VA Loan to Buy in The Colony?
- No Down Payment: Most homes in The Colony are well within the VA loan limit, allowing for $0 down financing for qualified Veterans.
- No Private Mortgage Insurance: Unlike FHA or conventional loans, VA loans do not require monthly PMI, saving buyers hundreds per month.
- Flexible Credit Requirements: Many VA lenders allow credit scores as low as 580. Learn more about VA loan credit score guidelines.
- Lower Interest Rates: VA loans typically offer 0.5% to 1% lower rates compared to conventional financing.
- Use BAH to Qualify: If you’re active-duty, you can use your Basic Allowance for Housing (BAH) to qualify. See how BAH works with VA loan income requirements.
VA Loan Requirements
VA loan requirements are designed to ensure that eligible veterans and service members can secure affordable, safe housing. Meeting these requirements involves fulfilling specific credit, income, property, and appraisal criteria tailored to protect both borrowers and lenders.
Service Requirements
To qualify for a VA loan, you must meet specific service requirements. These vary depending on your status:
Veterans:
- At least 90 consecutive days of active service during wartime.
- At least 181 days of active service during peacetime.
- Honorable discharge or discharge under honorable conditions is required.
Active-Duty Service Members:
- Currently serving with 90 days of continuous active duty.
National Guard and Reserves:
- At least six years of service or 90 days of active service under Title 10 or Title 32 orders.
Surviving Spouses:
- Unmarried spouses of service members who died in the line of duty or from a service-related disability.
- Some remarried spouses are eligible if the remarriage occurred after the age of 57.
Credit and Income
- To qualify for a VA loan, you must meet the lender’s credit and income standards.
- The VA generally prefers a debt-to-income (DTI) ratio of 41% or less.
- Exceptions may apply if your residual income exceeds VA requirements by 20% or if you have tax-free income.
Inspection and Appraisal
- A home inspection is recommended to check for major defects.
- A VA-approved appraiser will confirm the home meets the VA’s Minimum Property Requirements (MPRs) for safety and structural soundness.
Who Qualifies for a VA Loan?
VA loans are a unique benefit offered to eligible veterans, active-duty service members, and certain other groups. The Department of Veterans Affairs has specific requirements based on time served, type of service, and discharge status. Here’s what you need to know about qualifying:
Service Requirements:
- At least 90 consecutive days of active duty during wartime.
- At least 181 days of active duty during peacetime.
- Six years in the National Guard or Reserves, or 90 days under Title 32 orders (with a minimum of 30 consecutive days served).
Veterans: Must have completed the required time in active duty and received a discharge other than dishonorable.
Active-Duty Service Members: Currently serving and have met the necessary active-duty requirements.
National Guard and Reserves: Those who have completed six years of service or served 90 days of active duty during wartime.
Surviving Spouses: Eligible if they are the spouse of a service member who died in the line of duty or from a service-related injury. Some remarried spouses may qualify if remarriage occurred after age 57.
VA Loan Eligibility Calculator
Comparison of VA Loans vs. Conventional Loans
| Feature | VA Loans | Conventional Loans |
|---|---|---|
| Down Payment | $0 required | 5–20% |
| PMI | Not required | Required if <20% down |
| Interest Rates | Typically lower | Credit-based |
| Min Credit Score | 580–620 | 620+ |
| Funding Fee | 2.3%–3.6% | None |
| Prepayment Penalty | None | May apply |
Top Veteran-Friendly Neighborhoods in The Colony
Waterstone
- Description: Gated, resort-style lakeside community with pools and trails.
- Benefits for Veterans: Newer construction and VA-friendly developers.
- Median Home Price: ~$757,000
Tribute
- Description: Upscale golf-course community with parks and club amenities.
- Benefits for Veterans: High-quality build, VA-qualified.
- Median Home Price: ~$811,000
Ridgepointe
- Description: Well-established neighborhood with mid-value homes.
- Benefits for Veterans: Resale homes fall within VA limits.
- Median Home Price: ~$487,000
Garza Lake Estates
- Description: Lake-adjacent homes with mature foliage.
- Benefits for Veterans: Mid-market values and lake access.
- Median Home Price: ~$334,000
Northpointe
- Description: Suburban and affordable, close to schools and shops.
- Benefits for Veterans: VA-buyers can find good value resale homes.
- Median Home Price: ~$415,000
Local Veteran Resources & Support
- Denton County Veterans Services Office: Assistance with VA loan claims, pensions, and more.
- Texas Veterans Land Board (TVLB): Offers VA-backed home and land loans statewide.
- VA North Texas Health Care System: Your local VA hospital for benefits and health services.
- Texas Veterans Commission (TVC): Supports job training, education, and Veteran services.
- Apply for a VA loan: Get pre-qualified today in The Colony.
Explore Nearby VA Loan Guides
Frequently Asked Questions: VA Loans in The Colony
What is the VA loan limit in The Colony?
- The VA loan limit is $806,500 in 2025 for Denton County.
Can I buy a lakefront home?
- Yes, VA loans can finance homes on Lewisville Lake if they meet appraisal standards.
Are new-construction homes eligible?
- Yes—builders in The Colony can be VA-approved; just confirm before contracting.
Is there a minimum credit score?
- No official minimum, but most lenders seek scores around 580–620.
Can I reuse my VA benefit?
- Yes—as long as remaining entitlement exists or is restored. Learn how.
Can I include a non-Veteran co-borrower?
- Yes—spouses or non-Veterans can co-sign without affecting loan eligibility.
What is the VA funding fee?
- A one-time fee between 2.3%–3.6%, but waived for disabled Veterans or Purple Heart recipients.
How long does closing take?
- Typically 30–45 days with experienced VA lenders.
Are there closing-cost assistance programs?
- Yes—state or Denton County-based programs may help reduce closing expenses.
Do I need a Certificate of Eligibility (COE)?
- Yes. Your lender can retrieve it, or you can apply directly on VA.gov.
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