DSCR loans in Colorado
Purchase or refinance a rental in Colorado on the property’s income, not your W-2, tax returns, or personal debt-to-income ratio.
Andes Mortgage originates business purpose DSCR loans in Denver, Colorado Springs, Boulder and across the entire state.
For investors in Colorado, the play is to let appreciation do its work. Prices sit high against rents, so the median Denver or Boulder rental may struggle to cover the payment on paper. Many lenders see this and stop – we don’t. At Andes, we finance DSCR deals when the property meets a debt coverage ratio of 1 or when the ratio falls below it.
- No tax returns · no personal DTI
- From 640 credit scores
- Business purpose · available in 46 states
- No title seasoning
What is a DSCR loan in Colorado?
A DSCR loan turns on one figure — the debt-service coverage ratio: the property’s monthly rent divided by its full payment (principal, interest, taxes, insurance, any HOA — PITIA). A DSCR with a ratio of 1.0 means the rent covers the payment; above it, the property turns a profit. Below a 1.0 and the property fails to pay for the debt on paper. That number qualifies the loan instead of your income.
For the mechanics of the program itself, see our national DSCR loan guide.
Why Colorado is different: Colorado has some of the highest home prices of any state and rents may struggle to cover the payment. This doesn’t mean that Colorado is not a good place to invest – it’s just that the play relies more on home appreciation rather than a turning a small profit.
What Colorado rents and prices are doing right now
For investors, the biggest question is centered around how much a property can generate on rent alone. Therefore, it makes sense to know what Colorado rents are actually doing.
The chart below tracks typical asking rent for single-family homes in Denver, Colorado Springs, Fort Collins and Boulder, updated monthly from Zillow’s ZORI series, with the underlying figures in a table beneath it.
Colorado rental market · single-family
Data through Aug 2026
| Metro | Typical asking rent | YoY change | Data through |
|---|---|---|---|
| Denver | $2,981 | +1.4% | Aug 2026 |
| Colorado Springs | $2,354 | +2.4% | Aug 2026 |
| Fort Collins | $2,504 | +2.4% | Aug 2026 |
| Boulder | $2,996 | +2.3% | Aug 2026 |
Data through Aug 2026 · updated monthly · source: Zillow (ZORI)
But rents is only half the debt coverage ratio. The other half is what you pay for the house — Colorado’s statewide median listing price is $564,000, and it varies widely by metro. Here is the current listing picture statewide:
Colorado housing market
Realtor.com listing data · as of September 2026
Figures are Realtor.com listing data (what sellers are asking) — not sale prices. Source: Realtor.com via FRED (Federal Reserve Bank of St. Louis). Updates monthly.
Rent figures are typical asking rent for single-family homes — Source: Zillow (ZORI). Listing figures are Realtor.com median listing prices, not sale prices, published via FRED.
Who Colorado DSCR loans fit
Andes Mortgage originates DSCR loans in Denver and across the state of Colorado.
With these business purpose loans, we solve a problem that most investors face: low tax returns, write-offs or lack of income that doesn’t allow them to increase their rental portfolio or tap into existing equity of a rental.
A DSCR loan skips personal income, debt-to-income ratio and other hurdles that typical conventional mortgages impose and focuses on the property’s cash flow instead. Our Colorado DSCR loans allow investors to purchase, refinance and access equity via cash-out refinancing, HELOCs or HELOANs.
- Front Range investors buying for appreciation, where the ratio comes in under 1.0
- Self-employed and 1099 owners whose returns understate what they earn
- Mountain-town buyers financing a short-term rental on projected STR income
- Investors scaling past the ten-property limit that conventional financing caps you at
- Buyers targeting non-warrantable condos that conventional lenders decline outright
Want to know if DSCR is a good fit, or see what you’d qualify for? Run Mortgage Match — it takes less than 60 seconds and there’s no credit pull. Start Mortgage Match →
What are the requirements for a DSCR loan in Colorado?
DSCR terms are set by the investor lending shelf, not by the state.
Andes Mortgage works with 40+ investors across the country and we place your loan where it fits, not just where the lowest rate is offered, though, that’s also important for us.
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Parameter
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Andes Mortgage's Colorado DSCR guidelines
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Minimum credit score
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We work with as low as 640 credit score
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Max LTV — purchase (DSCR ≥ 1.0)
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Up to 85% for credit scores >700
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Max LTV — cash-out refinance
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Up to 75%
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DSCR 0.75–0.99 (reduced-ratio)
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Available — expect roughly a 5–10% LTV reduction vs. standard
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DSCR below 0.75 / no-ratio
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Available — typically to ~60–70% LTV at a higher credit score
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Loan amounts
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~$100K to $2.5M (minimum rises to ~$200K on sub-1.0 DSCR)
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Reserves
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3 months PITIA up to ~$1M; 6 months above ~$1M or on sub-1.0 DSCR
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Mortgage / rental history
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0x30x12 typical (no 30-day lates in 12 mo.)
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Property types
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SFR, PUD, townhome, 2–4 units, condos, and non-warrantable condos
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Rural property
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Allowed with up to 65% LTV
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Occupancy
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Business purpose / investment only
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Guidelines last verified: August 2026. Ranges reflect current wholesale investor guidelines and may change without notice. DSCR loans are business-purpose loans for non-owner-occupied property; this is not a commitment to lend.
DSCR loan rates in Colorado
Updated interest rates for DSCR loans in Colorado. Explore purchase and cash-out refinancing options with and without rate buydowns. Click build your scenario for a custom quote.
Rates as of Oct 2, 2026
These rates are a few days old — ask us for today's pricing.
Lower rate, more points
6.375%
1.912 points
Fewer points
6.750%
0.200 points
Up to 75% LTV
Lower rate, more points
6.375%
1.900 points
Fewer points
6.750%
no points
Up to 75% LTV
Lower rate, more points
6.375%
2.160 points
No points
6.875%
no points
Up to 70% LTV
Assumptions
- Credit score
- 760+
- Property type
- 1–4 unit investment
- Term
- 30-year fixed
- Prepayment penalty
- 3-year
- DSCR ratio
- 1.10+
- Max LTV
- 75%
Rates and points shown reflect Andes Mortgage's DSCR program ranges, synthesized from current wholesale pricing, and are illustrative, subject to change, and not a commitment to lend. Actual terms depend on a full review of your scenario.
DSCR loans are business-purpose financing priced nationally by program, so the pricing above applies across the states Andes serves — it isn't specific to Colorado.
In Colorado, under 1.0 isn't the exception — it's the starting point
There is no DSCR floor with Andes. We finance DSCR loans when the ratio fails to reach 1.0. We call this our DSCR under 1.0 or no-ratio program.
Here’s a reality of being an investor in Colorado: Prices ran ahead of its rents, so a healthy, well-located rental routinely can come in below 1.0 on debt coverage.
And here’s the part that surprises out-of-state investors: it isn’t a tax problem. Colorado has one of the lowest effective property-tax rates in the country — the gap is pure price-to-rent, with rising wildfire-area insurance adding to the payment.
Here’s a representative Denver deal:
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Denver SFR rental · $550,000 · $2,600/mo rent · 25% down
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Monthly
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Principal & interest (~$412,500 loan)
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~$2,814
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Property tax — ~0.5%
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~$229
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Insurance
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~$150
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Full PITIA
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~$3,193
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DSCR ($2,600 ÷ $3,193)
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~0.81 — no-ratio / reduced-ratio tier
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At most lenders, 0.81 is a decline. With Andes there’s no DSCR floor — a sub-1.0 ratio moves to a different tier of the same program, not off the table. That’s the single most important thing to know about financing Colorado: you’re buying appreciation, and the loan is built to bridge the cash-flow gap while you do.
The rent covers the payment. Best LTVs, widest credit range, lowest pricing.
A little short — often exactly where a high tax bill lands a Chicago deal. Still financeable at a modest LTV trade.
Qualify on down payment and credit instead of cash flow — typically to ~60–70% LTV.
Short-term rentals in Colorado — Andes provides STR DSCR loans and the permit question that comes first
Colorado’s resort economy — Summit County (Breckenridge, Frisco), Vail, Aspen, Steamboat, Winter Park — makes short-term rentals a real DSCR strategy here, financed on projected STR income rather than long-term rent. On purchases, we analyze AirDNA for projected income. For refinances and 2nd lien products, we look at the property’s short-term rental history for the most recent 12 months.
As a short-term rental investor, you have to keep in mind two things that can compared to a standard long term rental: STR is the stricter product (expect a higher minimum debt coverage ratio around 1.15, a stronger credit profile, and a reduced LTV), and the rules that decide whether you can operate at all are intensely local.
The Colorado DSCR HELOC — pull equity without touching your first mortgage
Colorado’s appreciation left a lot of investors equity-rich and rate-locked: real value in the property, sitting behind a first mortgage at a rate they’d never want to refinance away.
A DSCR HELOC solves exactly that.
It’s a business-purpose line against the rental’s equity, qualified on the property, available in either first or second lien position.
First lien — free-and-clear or high-rate
On a paid-off property, or one with a rate you’d happily replace, take the DSCR HELOC in first position.
Second lien - For those with current low rates
Your rental has a low interest rate that you don’t wish to give up by refinancing. Our DSCR HELOC lets you tap into equity leaving your current mortgage untouched.
Where it works — and two eligibility notes
The DSCR HELOC is at its best in Colorado’s urban markets — Denver, Colorado Springs, Fort Collins — where equity is deep and properties are unambiguously non-rural. Two things to know before you count on it:
- Log homes are ineligible — a construction-type exclusion that applies wherever the home sits.
- Rural-designated properties are ineligible — but "rural" is set by the appraisal, not by the town. In Breckenridge, Vail, or Frisco it depends on the specific parcel: a dense resort-core condo often qualifies; a cabin outside town often won't.
We confirm the property’s designation up front — so you know before you apply, not after.
Refinance your Colorado rental property with our DSCR loans
If your Colorado rental has a higher rate compared to the current rates available, a DSCR refinance may make sense. Or, perhaps you are looking to tap into equity with a cash-out refinance.
Up to 85% LTV for rate-term refinances
Lower your rate or replace your existing mortgage with a rate-term refinance. We go up to 85% LTV on this product.
Up to 75% LTV for cash-out refinances
Pay off the current mortgage or obtain a new loan on a paid off property and get cash immediately at closing.
Not sure which option fits you best? Start Mortgage Match, our proprietary tool that lets you know the best options available for you.
Colorado markets, by strategy
Denver & the Front Range — the appreciation play
Denver, Colorado Springs, Fort Collins, Boulder. The deepest, most liquid markets in the state, and where “dscr loan colorado” demand lives. Regular DSCR or our sub 1.0 ratio DSCR loans are popular here.
The mountain resorts — the Short Term Rental play
Summit County, Vail, Aspen, Steamboat. High-dollar short-term-rental territory, underwritten on STR income.
Property types we finance in Colorado
Single-family & PUD
The core of most Colorado DSCR portfolios, urban and suburban.
2–4 units & townhomes
Better blended cash flow — a way to push a Front Range ratio closer to 1.0.
Condos & non-warrantable
Financeable, including non-warrantable — common in resort-town and downtown Denver stock.
Multifamily 5-9 units
Small-scale 5–9 unit multifamily can close under our commercial DSCR guidelines.
Note: our Colorado DSCR loan allows rural properties too, but capped at 65% LTV — worth knowing in Colorado. Not sure a specific address qualifies? Run Mortgage Match and we’ll confirm before you’re under contract.
Colorado DSCR loan calculator
Enter the property’s rent and payment — and use the real rate for the parcel’s own taxing jurisdiction, the county’s or the independent city’s, not a state average. If you are looking to get a DSCR loan in Colorado, this tool is a must-have. We’ll tell you the DSCR, which tier you land in, and which constraint is limiting your deal. No email required to see your result.
Frequently asked questions
What is a DSCR Loan in Colorado?
A business-purpose mortgage for a non-owner-occupied Colorado rental, qualified on the property’s rent divided by its full PITIA rather than your personal income.
What are the requirements for a DSCR loan in Colorado?
A credit score from 640, a qualifying DSCR (no hard floor — sub-1.0 moves to reduced- or no-ratio tiers), 20–25%+ down, 3–6 months of reserves, and a non-owner-occupied property. Loans can vest in an LLC.
How much down payment do I need for a Colorado DSCR loan?
About 20–25% on a standard purchase; up to 85% LTV (15% down) with a 700+ score. Sub-1.0 deals carry lower LTV caps.
What does a DSCR appraisal cost in Colorado?
Roughly $750-$900 depending on the size of the property and amount of units. This is the average appraisal cost we see for DSCR loans in Colorado.
Can I buy a Colorado rental property through an LLC?
Yes. DSCR loans are business-purpose loans and can close in an LLC — how most Colorado investors hold rental property for liability and portfolio reasons. There’s also no limit on the number of DSCR loans you can hold. More on our guide: DSCR loan in an LLC .
What if my property’s DSCR is below 1.0?
You’re not disqualified — there’s no floor. 0.75–0.99 moves to reduced-ratio; below 0.75 to no-ratio. In Colorado, many investor deals fall below the 1.0 minimum DSCR due to the disparity between prices and rents. See below-1.0 DSCR financing.
Which Colorado markets work best for DSCR investing?
Denver and the Front Range for appreciation and liquidity; the mountain resort towns for short-term rentals, once the local permit rules check out.
Related resources
Every investment-property program we offer in Colorado.
See if your Colorado DSCR deal qualifies
Run Mortgage Match and we’ll tell you which DSCR tier your property lands in and what you’d put down — no credit pull, no obligation. Hablamos español.
Andes Mortgage LLC · NMLS #2187991 · Equal Housing Lender. DSCR loans are business-purpose loans for non-owner-occupied investment property only, offered in 46 states. Andes Mortgage does not offer owner-occupied or consumer-purpose mortgage loans in Colorado. Figures shown are typical ranges from current wholesale lending guidelines as of August 2026 — not a single lender’s terms and not a commitment to lend. Program terms and eligibility vary by lender and are subject to change without notice. Real-estate tax rates are the 2026 base rates published by each county or independent city; payment figures are illustrative.