CALL:

Colorado

DSCR Loans

ARE YOU READY TO INVEST IN A PROPERTY?

If you’re looking to invest in rental property in Colorado, a DSCR loan could be the perfect solution—allowing you to qualify based on the income the property generates, not your personal income.

DSCR LOAN

DSCR loans are designed for real estate investors who want to qualify for a mortgage using the income from the property itself, rather than relying on personal income or tax returns.

Short for Debt Service Coverage Ratio, a DSCR loan evaluates whether the rental income generated by a property is enough to cover the loan payments. This makes it a popular option for buyers looking to expand their portfolio without the hassle of traditional income documentation.

Instead of focusing on your employment status or W-2s, lenders review the property's ability to generate consistent cash flow. The higher the ratio of income to debt, the stronger the application.

In Colorado, where investment opportunities continue to grow, DSCR loans give investors a streamlined path to acquiring cash-flowing properties—often with quicker approvals and fewer underwriting requirements.

These loans can be used for single-family rentals, multi-units, short-term vacation rentals, or even refinancing existing investment properties.

Our Relentless Commitment Is To Provide You With

The Best Possible Services

DSCR Loans

and How They Work

DSCR loans are built for property investors, not primary homebuyers. The key qualifying factor is the property’s ability to pay for itself.
A typical DSCR threshold is 1.0 or higher—meaning the property brings in at least enough income to cover the monthly mortgage payment. A higher ratio shows stronger performance and may help qualify you for better terms.
Because you're qualifying based on the asset itself, personal tax returns, job history, and income verification are usually not required, which can be a major advantage for self-employed borrowers or full-time investors.
DSCR loans also offer flexibility. Whether you’re buying your first rental or scaling up to a larger portfolio, these loans can help you act quickly and confidently in competitive markets.

How to Qualify for a

DSCR Loan

To qualify for a DSCR loan, lenders will look at the projected or actual rental income of the property and compare it to the total monthly loan payment (including principal, interest, taxes, and insurance).
You’ll typically need a DSCR of at least 1.0, meaning the property covers the loan payment entirely. A DSCR above 1.2 is even stronger and may result in better rates or terms.
Most lenders prefer a credit score of 620 or higher, and a down payment of 20%–25% is common, though some programs may offer more flexible options.
You won’t need to provide tax returns or verify personal income, but you will need to show a lease agreement or market rent analysis to prove income potential.
Having cash reserves and a history of responsible credit use will strengthen your application and help you qualify for more favorable loan terms.

Comparing DSCR Mortgages to Other Mortgage Options

DSCR loans offer a number of advantages for real estate investors, starting with how they’re qualified. Instead of relying on personal income or tax returns, lenders focus on whether the property's income can cover the mortgage payment.

This makes DSCR loans especially appealing to self-employed borrowers, full-time investors, or anyone whose reported income doesn’t reflect their true earning power.

Interest rates on DSCR loans are often competitive, and while they may vary based on credit and property performance, many borrowers find them comparable to conventional investment property loans.

Credit requirements are typically more flexible than traditional mortgage programs. A higher credit score can help you secure better rates, but many DSCR lenders are open to borrowers with scores starting in the low- to mid-600s.

Another benefit is the range of properties that qualify. DSCR loans can be used for single-family rentals, multifamily properties, short-term vacation rentals, and even some mixed-use real estate, giving investors a wide set of options.

Loan terms are often available in both 30-year fixed and interest-only formats, giving borrowers flexibility to optimize for long-term stability or short-term cash flow, depending on their strategy.

For investors focused on income-generating properties, DSCR loans provide a streamlined, scalable way to grow a portfolio without the roadblocks of traditional income verification.