Colorado's most expensive rentals split into two worlds: ski-town vacation homes that earn by the night and Front Range homes that earn by the year. A large DSCR loan can finance either, but the approval questions are different.
In short: LendingStreet finances $1M+ Colorado rentals with DSCR loans that qualify on the property's income rather than your tax returns. Loans start at $150,000 with no stated maximum, and larger balances are reviewed and priced case by case. Mountain vacation homes can qualify on projected short-term rental revenue where the town or county issues a license, while Denver and Boulder rentals usually qualify on long-term rent because both cities restrict investor STRs. Wildfire insurance, HOA dues on ski condos and local licensing are the items that most often decide a large Colorado file.
Before running numbers, decide which kind of rental you are financing. The income source, the documents and the local rules all follow from that choice.
Mountain resort properties in towns like Aspen, Vail, Breckenridge, Telluride, Steamboat Springs, Crested Butte and Winter Park are often bought as vacation rentals. Front Range properties in Denver neighborhoods such as Cherry Creek, Washington Park, Highlands and Hilltop, and in Boulder, Cherry Hills Village and Castle Pines, are more often long-term executive or family rentals.
Some properties sit between the two. A home in a mountain town with a strict STR cap may end up as a long-term rental to local professionals, and a Front Range home near a major hospital or employer may rent furnished for 30 days or more. Tell the financing team which plan you expect to follow, because it decides which program and income figure apply.
| Factor | Mountain vacation home | Front Range long-term rental |
|---|---|---|
| Qualifying income | Projected STR revenue, where licensed | Lease or market rent |
| Starting DSCR rate | 6.49% for qualified borrowers | 6.125% for well-qualified borrowers |
| Key local issue | Town or county STR license, caps and taxes | City rental licensing; Denver and Boulder STR limits |
| Insurance focus | Wildfire, snow load, remote location | Hail, wildfire near the foothills |
| HOA exposure | Often high on ski condos and townhomes | Varies; common in newer suburbs |
Most Colorado mountain towns and counties now license short-term rentals, and several have capped the number of licenses, created zones where new licenses are limited, or added local taxes on nightly rentals. Breckenridge and Summit County, Aspen and Pitkin County, Vail, Steamboat Springs and others have each changed their rules in recent years.
For a DSCR loan, the question is simple: can this property legally be rented short term, and will the license transfer or be available to you? If you are buying a home that already has a license, ask how licenses transfer on a sale in that jurisdiction. If you need a new one, find out whether one is available before you rely on projected revenue.
If a license is not available, some investors plan for seasonal leases of 30 days or more, or long winter and summer leases to workers and families. Those can qualify on long-term rent, usually with a lower income figure.
This example is illustrative and not a quote. An investor buys a licensed vacation home in a Colorado ski town for $2,400,000. Projected short-term rental revenue that the program accepts averages $15,500 a month across the year. Taxes, insurance and HOA dues total about $2,200 a month. How much of projected revenue a program counts varies, so treat this as one possible outcome.
At 65% LTV, the loan is $1,560,000 and the down payment is $840,000. At a sample rate of 7.50% on a 30-year fixed, principal and interest is about $10,908. The total payment is about $13,108. DSCR is $15,500 divided by $13,108, or about 1.18x.
Ski-town revenue is seasonal. Winter and summer can carry the year while spring and fall are slow, so lenders look at annual revenue rather than a peak month. A booking history from the current owner can support the projection.
Many high-value mountain rentals are condos or townhomes near the lifts. HOA dues there can be large because they cover snow removal, amenities and building insurance, and every dollar goes into the payment.
Some resort buildings operate like hotels, with a front desk, a mandatory rental program or a shared rental pool. These are often called condotels, and many DSCR programs either exclude them or review them differently. If the building has a rental management agreement, send it with your scenario so the financing team can check eligibility early.
Condo projects are also reviewed for budget, reserves, insurance and pending litigation. Older buildings in resort towns sometimes face special assessments for major repairs, which can affect both the payment and the project review.
Denver generally allows short-term rentals only in the operator's primary residence, which rules out most investor STRs in the city. Boulder has similar limits. That makes long-term rent the qualifying income for most $1M+ rentals in both cities.
In Denver, high-value rentals include renovated homes and new builds in Washington Park, Cherry Creek, Highlands and Sloan's Lake, and some duplexes and townhomes. Denver also requires residential rental licenses. Boulder has rental licensing and occupancy limits on unrelated residents, which matter near the University of Colorado. Confirm each city's current rules before you buy.
Suburbs such as Cherry Hills Village, Greenwood Village, Castle Pines and Highlands Ranch have large single-family homes that rent to executives and families. These are one-rent properties, so the down payment does most of the work on the ratio.
Insurance is a growing part of the payment on Colorado rentals. Homes in the wildland-urban interface, including foothill areas west of Denver and Boulder and many mountain towns, can face higher premiums or fewer carrier options. The Front Range is also known for hail, which affects roof claims and deductibles.
On a high-value home, rebuilding costs are high and so is the premium. A DSCR loan counts insurance in the payment, so a large quote lowers the ratio. Get an insurance quote early, and ask about defensible space, roof age and fire mitigation, which can influence both price and availability.
Mountain homes may also need coverage that reflects snow load, remote access and longer fire department response times. These details rarely stop a loan, but they can change the numbers.
The core test is the same as any DSCR loan: income compared with the full payment, at a 1.0x standard minimum. Some programs go below 1.0 and some offer no-ratio options. On large balances, the following items carry extra weight.
DSCR rates start at 6.125% for well-qualified borrowers, and short-term rental DSCR starts at 6.49%. Larger balances are priced case by case. Purchases go up to 80% LTV and cash-out refinances up to 75%, but on large balances the maximum LTV is often lower and reserve requirements higher.
The minimum credit score is 620, with better pricing at higher scores. No W-2s or tax returns are required, LLC borrowers are allowed and 30-year fixed options are available. The financing team reviews your scenario and comes back with 2-3 options.
Own a mountain home outright or with a small loan? A cash-out refinance can turn that equity into the down payment on the next property, as long as the income covers the new payment at the program minimum.
Not every Colorado loan is a Vail or Aspen home. Loans of $500K to $1M are common for single-family rentals and duplexes in Denver, Aurora, Lakewood and Littleton, homes in Colorado Springs and Fort Collins, and condos and smaller homes in mountain towns such as Breckenridge, Winter Park and Steamboat Springs.
On these balances, leverage is often nearer the program maximums of 80% LTV on purchases and 75% on cash-out, and reserves are often lighter than on $1M+ loans, though it varies by program. The 1.0x standard minimum DSCR still applies, and a mountain condo used as an STR can qualify on projected revenue.
Licensing and insurance still drive many of these files. Mountain towns license or cap STRs, condo complexes may be reviewed at the project level, and hail and wildfire exposure feed straight into the payment.
A complete file helps the financing team come back with real options quickly.
Yes. LendingStreet finances investment property in Colorado, including ski-town vacation homes, mountain condos and Denver and Boulder rentals above $1 million. Loans start at $150,000 with no stated maximum.
Possibly. STR DSCR loans can qualify on projected revenue where the property can be licensed for short-term rental. Confirm license availability and transfer rules with the town or county first.
Denver generally limits short-term rentals to the operator's primary residence, so most investor properties in the city qualify on long-term rent instead.
Many DSCR programs exclude condotels or review them differently. Send the building's rental program details early so the financing team can check eligibility.
They generally look at annual revenue rather than a peak month. Booking history from the current owner can help support the projection.
Some programs accept mid-term rental income, and how it is documented and counted varies. Many investors qualify on long-term market rent and treat furnished stays as upside. Describe your plan when you apply.
It affects insurance cost and availability, and the premium is part of the payment. Get a quote early, especially for homes in foothill or mountain areas.
Purchases go up to 80% LTV, but on large balances the maximum is often lower and varies by program. HOA dues and insurance can also push the ratio, so run the numbers first.
Yes. Cash-out refinances go up to 75% LTV, and the income must cover the new payment at the program minimum. Seasoning rules vary by program.
Yes. DSCR loans start at $150,000 with no stated maximum, and $500K to $1M loans are common for Denver-area single-family homes and duplexes, Colorado Springs and Fort Collins rentals, and ski-town condos.
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