Denver has high values, a licensing requirement for every rental and a short-term rental law limited to primary residences. Investors refinancing here size the loan on long-term rent and keep the city license current.
In short: LendingStreet refinances Denver-area rentals out of hard money, bridge and existing loans with 30-year DSCR loans that qualify on the property's rent. Loans start at $150,000 with no stated maximum, rate-and-term reaches 80% LTV on some programs and the standard minimum DSCR is 1.0x. Colorado's relatively low property taxes help the ratio, while hail insurance and high values relative to rent are the main pressures.
In Denver, Westwood, Athmar Park, Harvey Park, Montbello, Globeville and parts of Park Hill have older ranches, duplexes and smaller homes investors renovate. Baker, Highland, Sunnyside and Berkeley have higher values and more infill duplexes.
In the suburbs, Aurora, Lakewood, Arvada, Westminster, Thornton, Englewood, Littleton and Commerce City offer single-family rentals at lower prices than central Denver. Each has its own rental and STR rules.
| Area | Typical rental stock | What to check before you refinance |
|---|---|---|
| Westwood, Athmar Park, Harvey Park | Ranches and duplexes | City rental license, renovated comps |
| Baker, Highland, Sunnyside | Older homes and infill duplexes | High values relative to rent |
| Aurora, Thornton, Commerce City | Suburban single-family | Metro district taxes, HOA rules |
| Lakewood, Arvada, Englewood | Ranches and split-levels | Hail insurance, local rental rules |
Investors here often finish a renovation on a hard money or bridge note that is interest-only and due within a year or two. Moving that balance into a 30-year DSCR loan stops the maturity clock. LLC borrowers are standard, the minimum credit score is 620 and leverage on rate-and-term reaches 80% LTV on some programs.
Many Denver investors finance renovations or infill duplexes with bridge loans. Because values are high relative to rent, the refinance often works best on a duplex or a property with a legal accessory unit.
Before refinancing a Denver rental, confirm the city rental license was issued or renewed after the renovation. If the property changed tenants, keep the license current, since underwriting may ask for it.
This example is illustrative and not a quote. An investor bought and renovated a duplex in Westwood with a bridge loan. Both units lease for $2,250 each, and the property appraises at $720,000. The bridge balance is $510,000.
The new loan of $522,000 covers the $510,000 payoff plus $12,000 in closing costs, about 72% of the $720,000 value. Estimated principal and interest on a 30-year term is about $3,605. With taxes of $290 and insurance of $260 a month, the full payment is about $4,155 and DSCR is about 1.08x on $4,500 of rent.
Low Colorado property taxes help, while the hail-driven insurance premium is nearly as large as the tax bill.
Two inputs move this math the most: the appraised value, which caps the loan amount, and the tax and insurance figures, which sit in the payment. A small change in either can move the ratio across the 1.0x line, so check both early.
| Item | Before: bridge loan | After: DSCR rate-and-term |
|---|---|---|
| Loan balance | $510,000 | $522,000 |
| Monthly principal and interest | $4,250 (interest only) | $3,605 |
| Taxes, insurance | $550 | $550 |
| Total monthly payment | $4,800 | $4,155 |
| DSCR at $4,500 rent | About 0.94x | About 1.08x |
| Term | Short-term, due soon | 30 years |
Colorado reassesses property every two years, and recent cycles brought large value increases. The state legislature has changed the residential assessment rules several times in recent years to limit tax increases, so bills can shift even without a value change.
Even so, Denver-area property taxes are low compared with many states. Some suburbs, especially in Aurora and Thornton, have metropolitan districts that add a separate levy. Colorado's documentary fee on deeds is small and applies to transfers, not refinances.
Metro district levies in newer suburbs can add a significant amount to the tax bill and sometimes last for decades. If your rental is in Aurora, Thornton or another suburb with metro districts, pull the full bill for the parcel before you size the loan.
Denver requires every residential rental to have a city rental license, which includes an inspection. Short-term rentals in Denver are allowed only in the operator's primary residence, so investor-owned properties must be leased long term.
Hail is a major insurance factor along the Front Range, and many policies carry percentage-based wind and hail deductibles. Homes near the foothills may face wildfire questions.
Denver allows accessory dwelling units in many neighborhoods, and duplexes are common in older areas. Combined rent from two units often makes the ratio work where a single-family home at the same price would not. Five to eight unit buildings are residential for DSCR purposes, though max LTV varies by program.
Rate-and-term pays off what you owe plus closing costs. Cash-out goes further and lets you pull equity, up to 75% LTV, but it usually carries a larger balance and a higher payment, and seasoning rules vary by program. If the goal is a lower payment or a longer term, rate-and-term is often the cleaner file.
Denver values often support cash-out, but rents are tight relative to price. Rate-and-term keeps the ratio healthier.
Most delays come from missing paperwork. Gather these before the appraisal is ordered.
Request a quote with the property address, the current payoff and the rent roll. LendingStreet works with investors refinancing in Denver, Arapahoe, Jefferson, Adams and Douglas counties, checks the ratio on realistic taxes and insurance and lays out 2-3 options, including sub-1.0 DSCR programs where they fit. Our investor loans are business-purpose loans on non-owner-occupied property. See the Colorado rate-and-term refinance page for state-level detail, or call (877) 298-1001.
Yes, you should have one. The city requires every residential rental to be licensed.
Not for an investor-owned property. Denver allows STRs only in the operator's primary residence.
Hail risk along the Front Range. Roof age and the hail deductible matter.
Yes. We refinance 1-8 unit rentals across the metro.
Yes. 30-year terms are available on our DSCR programs, which is what lowers the monthly payment compared with an interest-only short-term note.
Seasoning rules vary by program and can differ between rate-and-term and cash-out refinances. Share your purchase date, rehab costs and payoff, and we will tell you which programs fit your timeline.
No. The loan qualifies on the property's rent compared with the full monthly payment. We still review credit, reserves and the property itself.
Yes. LLC borrowers are standard on our DSCR programs. Members typically sign for the loan personally, and we review the operating agreement and EIN letter.
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