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DSCR loans for Colorado rental properties
Estimate a Colorado rental property’s DSCR
Meets theLender’s minimum 1.00 DSCR.
Start with the property’s income and expense
For an eligible Colorado investment property, LTR DSCR underwriting may compare qualifying long-term rent with the property’s proposed housing expense. The standard path begins at a 1.00 ratio; a separate Near-DSCR path may address eligible ratios below 1.00 under narrower limits. PITIA is used for an amortizing loan and ITIA for an eligible interest-only structure. The ratio is only one part of the decision: credit, liquidity, appraisal, property characteristics, experience, vesting, current authority and the complete current guidelines also control.
What a Colorado DSCR review still needs to answer
620-680
15%+
1–4 units
$100K–$3.5M
The ratio is a starting point rather than a substitute for underwriting. A complete review considers whether the transaction and property fit current program rules and whether the submitted information supports the income and expense figures.
- Property: The appraisal, condition, use, occupancy and other property details require review.
- Income support: Lease terms, appraisal rent evidence and other permitted records are evaluated under the current guidelines.
- Borrower and funds: Credit, reserves, required funds and the source of those funds remain relevant.
- Ownership and structure: Vesting, entity documents when applicable, transaction purpose and other structural features must be acceptable.
- Current program rules: The complete guidelines in effect for the file control; a summary or calculator cannot replace them.
Colorado DSCR calculation
660+
1.00
This simplified Colorado example shows how expected rent compares with the proposed monthly property expense.
- Expected monthly rent: $2,525
- Proposed monthly PITIA and association expense: $2,025
- Arithmetic: $2,525 ÷ $2,025 = 1.2469
- Rounded DSCR: 1.25
Here, PITIA refers to principal, interest, taxes, insurance and any applicable association expense included in the proposed figure. The rent and expenses accepted during underwriting may differ from these example inputs because documentation, appraisal findings, loan terms and program treatment can change the figures used. A 1.25 arithmetic result does not establish qualification or approval.
How long-term rent may be documented
For an eligible long-term rental, the file may be reviewed using permitted evidence such as an executed lease, appraisal-supported market rent or other documentation allowed by the current program. The mere presence of a lease does not mean its full stated rent will be used.
Underwriting must determine which evidence applies, whether the lease and occupancy details are acceptable, and what rent amount can be recognized. Treatment can depend on the transaction, property history, appraisal, lease status and the complete guidelines in force when the file is reviewed. Taxes, insurance, association dues and the proposed principal-and-interest payment also need file-specific confirmation.
From initial details to a closing decision
The order can vary as questions arise, but a Colorado DSCR file commonly moves through the following stages:
30–45 days
LLC OK
- Share the transaction outline. Provide the property address, purchase or refinance purpose, expected rent, estimated expenses, requested structure and proposed vesting.
- Review an initial program fit. A loan professional considers the broad scenario under current guidelines and identifies documents needed for a fuller review.
- Submit the application and supporting records. Supply requested identity, credit authorization, asset or reserve information, entity or vesting papers when applicable, lease materials and transaction documents.
- Order and assess property information. The appraisal and permitted rent evidence are reviewed along with property eligibility, condition, use and expense details.
- Complete underwriting. Underwriting evaluates the DSCR calculation together with credit, reserves, funds, structure, ownership, documentation and all applicable program requirements.
- Address conditions and finalize terms. Any remaining explanations or documents are reviewed, and approved terms are reflected in the closing disclosures and loan documents.
- Close only after final approval. Signing and funding remain subject to satisfied conditions, acceptable final documents and all required closing checks.
No. A 1.00 ratio means only that the eligible rent used in the arithmetic equals the property expense used in that same arithmetic. It is not a statement of approval and should not be assumed to be a universal program threshold. The property, appraisal, rent documentation, credit, reserves, ownership or vesting, structure and all current guidelines still require review.
Yes. Short-term-rental income can be used for an eligible Colorado DSCR loan. Underwriting will review the property, location, appraisal or market-rent analysis, operating history or other required income evidence, transaction structure, applicable local requirements and the current program guidelines for the specific file.
Yes. Eligible two- to four-unit properties can be financed with a Colorado DSCR loan. Underwriting will review unit-level rents or leases, the appraisal and rent schedule, occupancy and legal-use details, property expenses, transaction structure and the current program requirements for the specific file.
No assumption should be made that entity ownership eliminates individual review or changes credit reporting. Proposed vesting, entity documents, responsible parties, authorization to obtain credit, reporting practices and any required obligations are governed by the selected structure and current documents. Ask how the specific file would be underwritten and how the obligation may be reported before proceeding.
Yes. theLender is licensed in Colorado. Current company, regulator and license details are available through the theLender State Licenses page and NMLS Consumer Access.
Licensing is confirmed; each DSCR file still receives its normal property, income, appraisal, credit, reserves, ownership, structure and underwriting review.
Explore DSCR Loans in Nearby States
Controlled LTR DSCR program snapshot
theLender is licensed in Colorado. Current company, regulator and license details are available through the theLender State Licenses page [1] and NMLS Consumer Access. [2] The CFPB state-regulator directory provides regulator contacts. [3] Licensing is confirmed; current guidelines and complete underwriting control each file.
Sources and review
theLender is licensed in Colorado. Research checked the theLender State Licenses page, NMLS Consumer Access, the CFPB state-regulator directory and the current controlled DSCR program source on July 18, 2026. Licensing is confirmed; product terms and each transaction remain subject to current guidelines and complete file review.
- theLender State Licenses, Colorado company, regulator and license information; checked July 18, 2026.
- NMLS Consumer Access, public company and license lookup for Hometown Equity Mortgage, LLC, NMLS ID 133519.
- CFPB state-regulator directory, government resource for finding state regulator contacts.
- theNONI 1–4 Unit DSCR Program Matrix 05.15.26E, effective May 15, 2026, controlled internal product source.
Licensing does not establish product or transaction eligibility. This page is educational, not a commitment to lend. Current authority, program guidelines, property review, documentation and complete underwriting control each file. Programs and terms may change. For current consumer-facing product information, review the DSCR Investor Loan page.