Investor loans in Colorado
Buying a rental or adding to a portfolio? There is more than one way to finance it. Max compares investor lenders across conventional investment loans, DSCR loans and cash-out refinances, and tells you which structure fits the deal.
A short call. No obligation,
no paperwork to start.
Max Henry · Senior Loan Officer · NMLS #2186109
- Loan types
- Conventional, DSCR and cash-out
- Use
- Rental and investment properties
- Down payment
- More than on a primary home
- Ownership
- Many DSCR lenders allow an LLC
Who it is for
- Investors buying a first or next rental property
- Self-employed investors whose tax returns understate their income
- Owners who want to take cash out of one rental to buy another
- Investors who hold property in an LLC
- Buyers of long-term rentals and, with some lenders, short-term rentals
What it takes
- Down payment
- Investor loans need more down than a primary home. On DSCR loans lenders commonly ask for 20% to 25%.
- Credit and reserves
- Lenders set a minimum credit score and usually want several months of payments in reserve.
- Income or rent
- A conventional investment loan qualifies on your personal income and credit. A DSCR loan qualifies mainly on the property’s rent.
- Rent evidence
- A lease, or the appraiser’s estimate of market rent for the property.
General guidelines. Lenders set their own requirements, and Max confirms what applies to you.
Three ways to finance a Colorado rental
| Loan | Qualifies on | Good for |
|---|---|---|
| DSCR loan | The property’s rent | Self-employed investors, LLC ownership, growing a portfolio |
| Conventional investment loan | Your personal income and credit | Investors with strong documented income who want standard pricing |
| Cash-out refinance | Equity in a property you own | Turning equity in one property into the down payment on the next |
DSCR loans usually carry higher rates than conventional loans. Max shows you both when you can qualify for either.
Investing on the Western Slope and the Front Range
Rental markets in Colorado are not alike. Denver and the Front Range run on long-term tenants and steady demand. Grand Junction, Montrose and Durango mix long-term rentals with seasonal and visitor demand, and local rules on short-term rentals differ from town to town. Check the rules for the address before you count on nightly rental income. Max can tell you how a lender will treat the rent on the property you have in mind.
On the call with Max
Investor lending has no single rulebook. Each lender sets its own ratios, down payments and property rules, so the lender you pick changes the deal.
Tell Max about the property and the rent. He tells you whether the numbers work and which loan structure fits. Investor loan terms from different lenders side by side: rate, down payment, reserves and prepayment terms.
Investor loan questions
- What is the difference between an investor loan and a DSCR loan?
- A DSCR loan is one kind of investor loan. It qualifies the purchase mainly on the property’s rent. A conventional investment loan qualifies on your personal income and credit. Max shows you both when you can qualify for either.
- Can I buy a rental property without using my personal income?
- Often, yes. A DSCR loan qualifies the purchase mainly on the property’s expected rental income instead of your pay stubs or tax returns.
- How much do I need to put down on an investment property?
- More than on a primary home. On DSCR loans lenders commonly ask for 20% to 25% down, and requirements vary by lender and property.
- Can I close in the name of an LLC?
- Many DSCR lenders allow it. Tell Max how you plan to hold the property so he looks at the right lenders.
- Do DSCR loans work for short-term rentals?
- Some lenders accept short-term rental income and some do not, and local rules also apply. Bring the address and Max will tell you what is possible.
Run the numbers on your next property
One call tells you which loan fits, what it takes and what comes next.