Denver investors who bought before the 2020s have watched values climb well past what rents alone would justify. That creates a lot of equity, but also a common cash-out problem: at today's prices, the rent may not support a full 75% loan, so the ratio often sets the amount.
In short: Yes. LendingStreet finances DSCR cash-out refinances on Denver-area rentals up to 75% LTV, qualifying on the property's rent with no tax returns or W-2s. The rent must cover principal, interest, taxes, insurance and any HOA dues at the 1.0x standard minimum, which in Denver often caps the loan a bit below 75%. Loans start at $150,000, LLC borrowers are standard and the minimum credit score is 620.
Denver prices rose strongly through the 2010s and peaked in 2022. Since then, values have flattened or eased in many areas, and a large wave of new apartments has kept rents flat or slightly lower in parts of the metro. The result is high values relative to rent, which tightens the DSCR on most single-family rentals.
Investors who bought before 2019 often have very large equity positions. Those who bought near the peak may have little room for cash-out right now and may be better served by a rate-and-term refinance. Suburbs like Aurora, Thornton, Westminster, Lakewood and Arvada generally have lower prices than central Denver, so rent relative to value tends to be a little stronger there, though the gap has narrowed.
Denver requires a residential rental license for long-term rentals, which includes an inspection by a certified inspector. Some surrounding cities, including Aurora and others, have their own rental licensing or inspection programs. Underwriting may ask for the license, so have it current before you apply.
Colorado prohibits local rent control, but the state has added tenant protections in recent years, including rules on notices, fees and security deposits. Those do not change how a DSCR loan is sized, but they affect how you manage the property.
The City and County of Denver allows short-term rentals only in a host's primary residence. An investor-owned house in Denver generally cannot operate as an STR, so a Denver cash-out is qualified on long-term rent. Mountain towns and other Front Range cities set their own rules, and some allow non-primary STRs under license caps.
If you own a vacation rental in a mountain county, check its licensing status before relying on nightly income.
Colorado's residential property taxes are generally moderate as a share of value, but the state has changed residential assessment rules several times in recent legislative sessions, and Denver-area assessments rose sharply in the last reappraisal cycle. Colorado reappraises every two years. Use the current bill, not the one from when you bought.
Colorado has a small documentary fee on sales but no mortgage recording tax, so refinance closing costs are mostly title, recording and lender fees.
This example is illustrative and not a quote. An investor owns a three-bedroom house in the Harvey Park area appraised at $560,000, owing $280,000. It rents for $3,200 a month. Taxes are about $260 a month and insurance about $230.
At 75% LTV, the loan would be $420,000 with a total payment of about $3,284, a DSCR of about 0.97x, below 1.0x. At 70% LTV the loan is $392,000, the payment is about $3,098 and the DSCR is about 1.03x, which clears the minimum and returns $112,000 before closing costs.
| Item | At 75% LTV | At 70% LTV |
|---|---|---|
| Loan amount | $420,000 | $392,000 |
| Existing loan payoff | $280,000 | $280,000 |
| Cash before closing costs | $140,000 | $112,000 |
| Principal and interest (30 years) | About $2,794 | About $2,608 |
| Taxes and insurance (monthly) | $490 | $490 |
| Total payment | About $3,284 | About $3,098 |
| DSCR at $3,200 rent | About 0.97x | About 1.03x |
The Front Range is one of the most hail-prone areas in the country, and insurers there have raised premiums and deductibles. Wind and hail deductibles set as a percentage of the dwelling coverage are common. Wildfire risk also affects quotes in foothill and wildland-urban interface areas west of the city, especially after the 2021 Marshall Fire in Boulder County.
Get a current landlord policy quote before you apply, and note the hail deductible. A Class 4 impact-resistant roof often earns a meaningful discount with Colorado carriers, and replacing a damaged roof with one is a common use of cash-out proceeds.
Denver has a good stock of older duplexes and small multi-unit buildings in neighborhoods like Baker, Capitol Hill, Highland, Sunnyside and Whittier, and the city has expanded where accessory dwelling units are allowed. Multiple legal units can carry a larger loan because the combined rent supports a higher payment.
Two to four unit properties qualify on combined rent, 5 to 8 unit buildings can qualify on residential programs at a lower maximum LTV that varies by program, and an ADU's rent can count if the unit is legally permitted.
Because Denver equity is large but Denver ratios are tight, many investors use a cash-out to move capital into markets where the same dollars buy more rent, such as Colorado Springs, Pueblo or out-of-state Midwest and Southeast markets. Others reinvest at home by adding units, which raises the rent the property can support.
Have these ready before you apply.
Yes. We finance DSCR cash-out refinances on non-owner-occupied rentals across the Denver metro, up to 75% LTV, starting at $150,000.
Denver values are high relative to rents, so the rent may not cover a full 75% loan at 1.0x. A slightly lower LTV often works.
Generally no. Denver allows STRs only in a host's primary residence, so investor-owned houses are qualified on long-term rent.
Denver requires a residential rental license for long-term rentals, which includes a passing inspection. Have it current before applying, since underwriting may ask for it.
If the ADU is legally permitted and leased, its rent generally counts toward the DSCR.
Yes, some programs allow a DSCR below 1.0x, usually with lower leverage or stronger credit and reserves.
Seasoning varies by program. Some allow it soon after purchase; others want several months or limit the loan to cost plus improvements.
No. The loan qualifies on rent. You need a 620 or higher credit score and reserves.
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