Colorado Springs has a real luxury segment, from the Broadmoor and Cheyenne Canyon to Flying Horse and the Garden of the Gods area. What it does not always have is luxury rent to match, and that gap decides how a jumbo DSCR loan is sized here.
In short: LendingStreet offers jumbo DSCR loans from about $1.5M to $5M+ for purchase, rate-and-term and cash-out refinances on high-value 1-8 unit rentals in Colorado Springs and El Paso County, qualifying on the property's rent. Larger balances get more review, and maximum LTV can be lower and varies by program. In Colorado Springs, executive homes often rent for less than their value would suggest, so leverage on a single home is usually set by the rent, and many large files are 5-8 unit buildings or several properties.
The highest-priced homes cluster in the Broadmoor area and Cheyenne Canyon on the southwest side, around Kissing Camels and the Garden of the Gods, in Flying Horse and parts of Northgate and Pine Creek on the north side, and on acreage in Black Forest and around Monument. Tenants for these homes include senior officers, executives on relocation, medical professionals and families waiting for a custom build.
Other large-balance files are not single homes at all. A 6-8 unit building near downtown or a group of rentals financed together can reach jumbo size without luxury pricing.
Corporate relocations and military command assignments create a small but steady pool of tenants for executive homes. Those leases are often one to three years, and some are paid through relocation packages. Documented, signed leases on the subject home or similar homes give the strongest rent support.
A $1.6M home in Colorado Springs might lease for well under 1% of its value a month. With the DSCR test applied to that rent, a jumbo loan on a single luxury home is often sized below the program's maximum LTV. That is not a penalty; it is the arithmetic of rent versus price.
Bring signed leases on comparable homes if you have them. Few luxury rentals trade, so rent support often makes the difference.
This example is illustrative and not a quote. An investor buys a home near the Broadmoor for $1,650,000 that leases for $8,200 a month. Taxes are budgeted at about $715 a month, insurance at $520 and HOA dues at $150.
At 65% LTV the loan is $1,072,500 and DSCR is about 0.93x. At 60% it is $990,000 and about 0.99x. At 55% it is $907,500, the payment is about $7,699 and DSCR is about 1.07x. The investor here would likely choose the lowest loan amount or look at a sub-1.0 program.
The lesson: on a luxury single-family rental in this market, plan for a larger down payment than the program maximum allows. On a 5-8 unit building with the same value, the higher combined rent usually supports more leverage.
| LTV | Loan amount | Estimated principal and interest | Total payment | DSCR |
|---|---|---|---|---|
| 65% | $1,072,500 | $7,462 | $8,847 | 0.93x |
| 60% | $990,000 | $6,888 | $8,273 | 0.99x |
| 55% | $907,500 | $6,314 | $7,699 | 1.07x |
Many of the city's most expensive homes sit against the foothills, in the wildland-urban interface. Insurers price that exposure, and some limit new policies in certain areas. Hail adds to it, especially on large roofs. Get a landlord policy quote on a high-value home early; it can be one of the largest items in the payment after principal and interest.
Some investors look at large homes for nightly rentals near the Broadmoor, Garden of the Gods or Manitou Springs. Colorado Springs requires STR permits and has restricted new non-owner-occupied STRs in residential zones, and Manitou Springs has its own rules. Confirm permit availability before buying; some programs qualify STRs on projected revenue where they are allowed.
The loan still qualifies on rent, with no W-2s or tax returns, a 620 minimum credit score and 30-year terms. Expect lower maximum LTV, higher reserves and, on some programs, a second valuation or deeper review. Pricing is set case by case. For five or more rentals, a blanket portfolio loan with one closing, one payment and release provisions may fit better than one jumbo loan.
Owners of long-held north-side or Broadmoor-area rentals can use a jumbo cash-out refinance, up to 75% LTV on standard programs and often lower on large balances. As with a purchase, the rent has to support the new payment, which usually limits cash out on a single luxury home.
Larger loans also attract a closer look at your experience as a landlord, your other properties and your reserves. A schedule of real estate owned, with current leases and loan balances, speeds the review.
If the home has acreage, a well, a septic system or outbuildings, as many Black Forest and Monument properties do, expect the appraiser to evaluate those features and the underwriter to ask about them.
North of the city, Monument and parts of Black Forest have large homes on acreage that attract tenants who want space and quick access to the Air Force Academy and the I-25 corridor toward Denver. Those properties may have wells, septic systems and wildfire exposure, all of which affect appraisal, insurance and the DSCR payment. Expect a closer review, and get insurance quotes early.
Our investor loans are business-purpose loans on non-owner-occupied property. Send the property details and rent support through the form below or call (877) 298-1001. We will tell you plainly whether a jumbo DSCR loan, a 5-8 unit loan or a blanket loan fits best.
A DSCR loan of roughly $1.5M to $5M+ on a high-value 1-8 unit rental, with more review and often lower maximum LTV.
Because the rent usually is not high enough relative to price. The DSCR test on that rent often sets a lower loan amount.
Mainly through insurance cost and availability. Get a quote early on homes near the foothills or in Black Forest.
Only if permits and HOA rules allow it. Colorado Springs and Manitou Springs each have their own STR rules.
Often, if you have five or more properties. A blanket loan uses one closing and one payment and qualifies on portfolio cash flow.
No. The loan qualifies on the property's rent, credit and reserves.
No. Our investor loans are business-purpose loans on non-owner-occupied property, so the home must be rented to a tenant, not lived in by you.
Yes. Cash-out goes up to 75% LTV on standard programs and is often lower on large balances, and the rent must support the new payment.
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