DSCR Loans in Colorado
What does a $533K typical home rent for in Colorado? About $1,960, which is why the state's best DSCR files come from Pueblo and small multifamily rather than Denver houses. Property tax is one of the lowest anywhere, but hail pushes insurance to about $326 a month, and that surprise tends to land late.
Colorado DSCR Loan Market
Colorado is an appreciation state with a low tax bill and an expensive roof. The typical home costs about $533K against typical rent near $1,960, so a Denver or Fort Collins house at 20% down lands far below a 1.0 ratio. The effective property tax rate of about 0.50% is one of the lowest in the country, which helps. Insurance does not. The Front Range is hail country, and the state average runs about $326 a month.
The legal climate shifted in 2024. HB24-1098 added statewide just-cause eviction protections, though there is still no statewide rent cap. Denver adds its own layer for short-term rentals: a license tied to the operator's primary residence, with non-primary rentals pushed into a separate, more limited lodging license.
Where it still works: Pueblo, where prices run far below the Front Range average, and Colorado Springs, where Fort Carson, Peterson and Schriever Space Force Bases, and the Air Force Academy keep rental demand steady.
Top Investor Cities
| City | Median Price | Rent | DSCR |
|---|---|---|---|
| Denver | $525K | $1,880 | 0.54x |
| Colorado Springs | $442K | $1,740 | 0.58x |
| Aurora | $453K | $1,760 | 0.58x |
| Fort Collins | $560K | $1,960 | 0.53x |
| Pueblo | $283K | $1,340 | 0.66x |
Monthly tax on $533,000 property: $222/mo
8 DSCR Loan Programs for Colorado Investors
Standard DSCR
The most popular option. 20% down, 660+ credit.
No-Ratio DSCR
No minimum DSCR required. 30% down.
Interest-Only DSCR
Lower monthly payments for better cash flow.
STR DSCR
Use projected Airbnb/VRBO income to qualify.
Foreign National DSCR
No SSN or US credit history required.
Bank Statement DSCR
Hybrid qualification for self-employed investors.
Portfolio DSCR
Finance multiple properties under one loan.
Bridge-to-DSCR
Purchase, rehab, then refinance into DSCR.
DSCR Loan Requirements in Colorado
Licensing & Regulatory
Loans in Colorado are originated by a licensed DSCR broker matched to your state. The matched broker holds the required state license; DSCRBroker.com is not the originator.
All lending decisions and terms are determined solely by the matched broker and their wholesale lending partners.
Common Property Types
- Single-Family Rentals
- Condos/Townhomes
- Short-Term Rentals
- Small Multifamily (2-4 Units)
Down Payment & LTV
- Standard DSCR: 20% minimum down (80% LTV)
- No-Ratio DSCR: 30% minimum down (70% LTV)
- 30%+ down unlocks No-Ratio DSCR programs and broader lender access
Appraisal & Rent Schedule
- Form 1007 rent schedule required with appraisal
- Appraisal estimates market rent for DSCR calculation
- STR properties: AirDNA projected income accepted
Sample DSCR Deal in Pueblo, Colorado
Duplex (2 x 2-bed)
Purchase in Pueblo, Colorado
Monthly Breakdown
This borrower closed in 25 days with no income verification, no tax returns, and no employment check.
Results may vary. This is a representative example, not a guarantee of future performance.
This deal example is for illustrative purposes only and is based on representative scenarios across our broker network. Actual loan terms, approval, and closing depend on your full credit profile, property details, appraisal, and the matched lender's specific guidelines. This is not a loan offer or commitment to lend.
DSCR Loan Questions for Colorado Investors
Not the way most investors picture it. Denver ties its short-term rental license to the operator's primary residence, so a house you buy purely as an Airbnb generally will not qualify. Non-primary short-term rentals need a separate lodging facility license, which is much more limited. Mountain towns set their own rules, and several have tightened caps or taxes in recent years. If the deal only works on nightly income, confirm the license path in writing before you ask a lender to count that income.
The tax part probably did not do it. Colorado's effective rate runs about 0.50%, among the lowest in the country. The surprise is usually insurance. Hail exposure along the Front Range pushes the state's average homeowners premium to about $326 a month, and a landlord policy on an older roof can run higher. Newer roofs, impact-resistant shingles, and a higher hail deductible are the main levers, and each one is worth pricing before you set your offer.
It requires a just cause, such as nonpayment or a lease violation, to evict or decline to renew most tenants who have been in place for 12 months, and some no-fault reasons trigger relocation assistance. It does not cap rent. For a DSCR buyer, the practical effect is on your exit plan. If you intend to sell vacant or move a relative in, build that timeline into the deal, and screen carefully, because replacing a tenant now takes a documented reason.
It is one of the steadier ones in the state. Fort Carson, Peterson and Schriever Space Force Bases, and the Air Force Academy create a deep pool of tenants with predictable housing allowances, and prices sit below Denver's. Two cautions. Orders cluster in summer, so plan vacancy around the moving season. And lenders qualify on market rent from the appraisal, not on allowance tables, so a house that rents to a senior officer still has to appraise at that rent.
Running the numbers on a rental in Colorado?
Send the scenario. Your matched specialist will tell you which structure the rent can actually support: standard, interest-only, or no-ratio. 2 minutes. No SSN. No credit pull.
Match Me With a SpecialistLoans in Colorado are originated by a licensed DSCR broker matched to your state. The matched broker holds the required state license; DSCRBroker.com is not the originator. The matched broker is not affiliated with DSCRBroker.com except as a participating broker in our matching network. All lending decisions and terms are determined solely by the matched broker and their wholesale lending partners.