Colorado rentals are in demand, but high purchase prices mean rent often struggles to cover a full-leverage payment. The best lender is the one whose program fits a tight ratio.
In short: There is no one best DSCR lender in Colorado; the right fit depends on how your property's rent compares to the payment and what leverage you need. In Denver, Fort Collins and the mountain towns, the ratio is usually the limiting factor, so compare minimum DSCR, sub-1.0 options, max LTV and prepayment terms along with rate and closing costs. LendingStreet finances investment property in Colorado with DSCR rates from 6.125%, 30-year fixed options and no W-2s or tax returns. Plan your down payment around the ratio, and confirm short-term rental rules before counting on nightly income.
Kiavi, Angel Oak, Griffin Funding, Visio Lending and CoreVest also write DSCR loans, as does LendingStreet. Each has its own rules on minimum ratio, condo eligibility, short-term rental income and leverage.
In a high-price state, those rules matter more than a small rate difference. A lender that accepts a ratio below 1.0x, or that treats a resort condo favorably, may be the only one that makes a specific deal work.
We offer DSCR rental loans that qualify on the property's rent. Rates start at 6.125% for well-qualified borrowers, and short-term rental DSCR starts at 6.49%, qualifying on projected revenue where STRs are allowed.
Purchases go up to 80% LTV and cash-out refinances up to 75%, with a 620 minimum credit score. The standard minimum is 1.0x, and some programs go below 1.0 or offer no-ratio options. LLC borrowers are welcome, and our financing team reviews your scenario and comes back with 2-3 options.
The Denver metro, including Aurora, Lakewood and the surrounding suburbs, is the state's largest rental market, with strong demand and prices that compress ratios. Colorado Springs, home to Fort Carson, Peterson Space Force Base and the U.S. Air Force Academy, has a large military and civilian renter base at somewhat lower prices than Denver.
Fort Collins is anchored by Colorado State University, so student and staff rentals are common. Mountain resort towns such as Breckenridge, Vail, Steamboat Springs and Aspen are known for vacation rentals, very high prices and condo-heavy inventory.
Denver generally limits short-term rentals to a host's primary residence, which typically rules out a non-owner-occupied nightly rental there. Many mountain towns and counties require STR licenses, and some cap the number of licenses, limit them by zone or have paused new permits at times.
Rules change often, so confirm the current status with the town or county before you buy. If STR income is not allowed, underwrite the property on long-term rent instead.
Price is the biggest factor. Insurance is rising in parts of the state due to hail on the Front Range and wildfire risk in foothill and mountain areas. HOA dues on Denver townhomes and resort condos come straight out of the ratio as well.
This example is illustrative and not a quote. An investor wants a single-family home priced at $625,000 with long-term rent of $3,300 a month and taxes and insurance of $420 a month. To hit 1.0x, principal and interest can be no more than $2,880 a month ($3,300 minus $420).
At a sample rate of 7.0% on 30-year amortization, that supports a loan of about $432,900, or roughly 69% LTV. At 80% LTV the $500,000 loan has principal and interest of about $3,327, a payment of about $3,747 and a DSCR of about 0.88x. At 68% LTV the $425,000 loan has principal and interest of about $2,828, a payment of about $3,248 and DSCR of about 1.02x, which means a $200,000 down payment plus sample closing costs of $9,000.
| Item | 80% LTV | 68% LTV |
|---|---|---|
| Loan amount | $500,000 | $425,000 |
| Principal and interest | $3,327 | $2,828 |
| Taxes and insurance | $420 | $420 |
| Total monthly payment | $3,747 | $3,248 |
| DSCR at $3,300 rent | About 0.88x | About 1.02x |
Some programs accept a ratio below 1.0x, usually at lower leverage or with stronger credit and reserves. A no-ratio program is another route for borrowers with strong profiles. Either way, run the numbers before you write the offer.
Send us the address, price, rent estimate, insurance quote, HOA details and your LLC documents. We will show what leverage the property supports and which programs fit.
Yes. LendingStreet finances investment property in Colorado, including the Denver metro, Colorado Springs, Fort Collins and mountain resort towns. Loans are business-purpose on non-owner-occupied property, starting at $150,000.
It depends on the deal. Kiavi, Angel Oak, Griffin Funding, Visio Lending, CoreVest and LendingStreet all write DSCR loans. In Colorado, compare minimum ratio and sub-1.0 options alongside rate.
Denver generally requires STRs to be the host's primary residence, and we finance only non-owner-occupied property. In most cases a Denver rental would need to qualify on long-term rent. Confirm current city rules.
Often, yes, subject to the condo project meeting program rules. Condotels and buildings with hotel-style rental programs may need a non-warrantable condo program. Share the HOA questionnaire early.
You can lower the loan amount, or look at a sub-1.0 DSCR or no-ratio program. Those programs often come with lower leverage and stronger credit or reserve requirements.
No. The loan qualifies on the property's rent. You still need a 620 or higher credit score, reserves and entity documents if you borrow through an LLC.
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