DSCR & Investment Loans
Grow your Colorado real estate portfolio with financing that qualifies based on rental income — not your personal tax returns. DSCR loans are the investor's tool for scaling without the limitations of traditional income verification.
Let the Property Qualify Itself
DSCR — Debt Service Coverage Ratio — is a metric that compares a property's gross rental income to its mortgage payment (principal, interest, taxes, insurance, and HOA if applicable). A DSCR of 1.0 means the property generates exactly enough rental income to cover its debt. Most lenders want a DSCR of at least 1.0–1.25.
The revolutionary thing about DSCR loans: your personal income, W-2s, and tax returns are not required. Lenders look at the property's income potential — not yours. This makes DSCR loans ideal for self-employed investors, high-earner buyers who write off income, or anyone building a portfolio who doesn't want each property evaluated against personal income limits.
DSCR Loan Formula
DSCR = Monthly Gross Rental Income ÷ Monthly PITIA
Example: A property rents for $3,200/month. Monthly PITIA (mortgage payment + taxes + insurance) is $2,800. DSCR = 3,200 ÷ 2,800 = 1.14. This property qualifies.
DSCR Loan Requirements
- Minimum credit score: typically 680+ (varies by lender)
- Minimum DSCR: 1.0 (some lenders allow below 1.0 with higher down payment)
- Down payment: typically 20–25% for single-family, 25–30% for multi-family
- Property types: 1-4 unit, condos, short-term rental properties (Airbnb eligible with some lenders)
- Investment properties only — not owner-occupied primary residences
Short-Term Rentals
Colorado's short-term rental market — especially in mountain communities — is one of the most lucrative in the country. Certain DSCR lenders now accept Airbnb/VRBO income data (via AirDNA or market analysis) to qualify properties, making it possible to finance a Breckenridge or Steamboat STR without showing personal income.
DSCR vs. Conventional Investment Loan
DSCR Loan
No income docs required
Conventional Inv.
Full income verification
DSCR Loan
Scale unlimited
Conventional Inv.
10 property limit (Fannie/Freddie)
DSCR Loan
STR income accepted
Conventional Inv.
LTR income only
Why Colorado Investors Choose DSCR Loans
No Income Documentation
No W-2s, no tax returns, no DTI calculation based on personal income. The property does the qualifying.
Unlimited Portfolio Scaling
Unlike conventional loans capped at 10 properties, DSCR loans have no property count limits — scale as fast as the market allows.
Short-Term Rental Eligible
Finance Airbnb/VRBO properties in Breckenridge, Steamboat, Telluride and beyond using projected short-term rental income.
Self-Employed Friendly
If your tax returns show a fraction of your actual income due to legitimate deductions, DSCR eliminates that problem entirely.
1-4 Unit & Multi-Family
Finance single-family rentals, duplexes, triplexes, and fourplexes — all eligible under DSCR guidelines.
Faster Closing
Without income verification, the processing time is often shorter than conventional investment loans — move fast on opportunities.