Denver's scrape-and-rebuild market runs on side-by-side duplexes, rowhomes and the occasional ADU. Land near downtown is costly, soils can be tricky and city fees add up, so the lender you choose needs to understand both the build and the long-term hold.
In short: LendingStreet is our top pick for ground-up construction in Denver. We finance investor builds of 1 to 8 units, including side-by-side duplexes, rowhomes, homes with ADUs, spec homes and small 5-8 unit buildings. Loans are sized on loan-to-cost with terms set per project, draws are released after inspections and LLC borrowers are standard. When the build is done, we can refinance it into a 30-year DSCR loan qualified on rent. Get a quote with the form below or call (877) 298-1001.
LendingStreet is an investor lender with construction and DSCR rental loans under one roof. In Denver that matters, because many builders finish a duplex, sell one side and keep the other, or hold both as rentals.
We size each project on loan-to-cost and set terms around the plans, permits, budget and builder experience. Draws are released after inspections, so funding stays in step with the work. When you hold, the DSCR refinance qualifies on rent with no W-2s or tax returns.
Send your site and plans through the form below, or call (877) 298-1001 to talk it through.
Scrape-and-rebuild projects cluster in Sunnyside, Berkeley, West Highland, Chaffee Park, Villa Park, Barnum, West Colfax, Athmar Park and Harvey Park, where older bungalows and ranches sit on lots zoned for two units. Globeville, Elyria-Swansea and Montbello see more new infill at lower land prices.
In the suburbs, Aurora, Lakewood, Arvada, Westminster, Thornton, Commerce City, Englewood, Littleton, Brighton, Castle Rock and Parker offer spec and build-to-rent opportunities, often on lots in newer subdivisions with HOA rules to check.
Permits in Denver go through Community Planning and Development, which handles zoning review, building permits and inspections. The Denver Zoning Code limits slot-home layouts in many multi-unit zones and has widened where ADUs are allowed, so confirm current rules for your parcel before you design.
New construction can trigger affordable housing linkage fees, utility connection charges and sidewalk or right-of-way requirements, all of which belong in soft costs. Suburban cities have their own departments and fee schedules.
Expansive soils are common along the Front Range, and many sites need an engineered foundation. Hail is a regular risk for roofs and exteriors.
How LendingStreet compares with the kinds of lenders Denver builders usually consider. The other columns describe general patterns, and individual lenders vary.
| What matters on a build | LendingStreet | Community bank or credit union | Local hard money lender |
|---|---|---|---|
| Who the program is for | Real estate investors and builders, 1-8 units | Broad mix of consumer and business customers | Investors needing short-term money |
| Leverage basis | Loan-to-cost, set project by project | Often conservative, tied to the full banking relationship | Varies, fees and terms differ widely |
| Duplex you may sell half of | Yes, structure for sale, hold or both | Varies | Varies; short-term only |
| Paperwork focus | The project: plans, permits, budget, builder track record | Often personal and business tax returns | Varies by lender |
| Title in an LLC | Standard | Sometimes, depends on the bank | Usually |
| Funding the build | Inspection-based draw schedule | Varies by bank | Varies; some hold back large reserves |
| Long-term rental loan | DSCR refinance with no W-2s or tax returns | Usually needs income documentation | Rarely offered |
| Footprint | Nationwide, all 50 states and DC | Mostly local | Often one metro or state |
This example is illustrative and not a quote.
An investor buys a scrape lot zoned for two units for $480,000. Hard costs for a side-by-side duplex are $720,000 and soft costs, including architecture, soils engineering, permits and fees, are $120,000, for $1,320,000 in total. For illustration, the loan is sized at 75% of cost, $990,000, with $330,000 from the investor. Hard costs are released in about 5 draws of roughly $144,000 after inspections.
The finished duplex is valued at $1,700,000 and each side rents for $3,600, or $7,200 a month. At the full $990,000, the DSCR would be about 0.91x. Paying down $160,000 to an $830,000 DSCR loan, about 48.8% of value, gives estimated principal and interest of $5,592, taxes of $878 and insurance of $383, a total of $6,853 and a DSCR of about 1.05x.
Colorado residential property taxes are relatively low compared with many states, but the state has changed assessment rules several times in recent years. Confirm the current figures with the Denver Assessor or the county for suburban parcels.
Colorado's documentary fee on a sale is small. Hail drives insurance costs, so price builders risk and finished-property coverage early.
Denver allows short-term rentals only in a host's primary residence, so investor-owned new builds in the city should be underwritten on long-term rents. Denver also requires residential rental properties to be licensed.
Run each lender through these questions:
How LendingStreet answers: loan-to-cost sizing with terms set per project, and leverage that can be lower on larger balances or 5-8 units, which varies by program. Draws follow inspections on a schedule set before closing. We look for builder experience or an experienced general contractor, close in your LLC as standard and can refinance the finished rental into a DSCR loan with a 1.0x standard minimum and seasoning that varies by program.
Strong Denver requests include approved or nearly approved plans, a soils report, a line-item budget with contingency and a builder with completed infill projects. Projects without plans or permits, or a borrower with no build track record and no experienced general contractor, usually do not qualify.
Projects of 9 or more units are commercial. For 1-8 unit builds across the Denver metro, get a quote with the form below or call (877) 298-1001.
Our top pick is LendingStreet. We finance 1-8 unit investor builds on loan-to-cost, release draws after inspections, lend to LLCs and can move the finished rental into a 30-year DSCR loan, which fits Denver's duplex and rowhome market.
Yes. We lend in Denver, the surrounding Front Range counties, all of Colorado and all 50 states and DC, on non-owner-occupied investment property.
Often, yes, if the project is set up so each side can be sold separately. Tell us your plan at the start so the loan is structured for it.
Not for an investor-owned property in the city, because Denver limits short-term rentals to primary residences. Plan on long-term rents.
After each stage of work, an inspection confirms progress and that draw is funded. Our draw schedule calculator helps you plan stages.
The standard minimum is 1.0x, and sub-1.0 programs exist. The minimum credit score is 620.
Experience matters. A first-time builder usually needs an experienced general contractor on the project.
Use the form below or call (877) 298-1001 with your lot, plans and budget.
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