DSCR rental loans qualified on the property, not your tax returns.
Long-term rental financing that qualifies on the property's own cash flow. No personal income documentation. Colorado hands a DSCR underwriter two state-specific variables: a two-rate property tax calculation that resets on a biennial cycle, and an insurance line driven by hail. Business-purpose only, and every structure is set in underwriting.
Typical figures, subject to underwriting and market conditions. Not a commitment to lend.
How it works
No tax returns or personal income docs in most cases. We qualify on the property's cash flow, so you can scale your portfolio without the paperwork drag of conventional lending.
How do I model the tax line on a Colorado DSCR file?
Carefully, because Colorado does not use one residential assessment rate any more. Since tax year 2025 there are two: one applied to school district mills, one to everything else. Tax year 2025 was 7.05% for schools and 6.25% for local governments, with no value reduction. Tax year 2026 is 7.05% for schools and 6.8% for local governments, and the local-government side first subtracts 10% of actual value capped at $70,000. The math is actual value times assessment rate times mill levy, run twice and added. Rates can step down 0.1% if statewide actual value growth clears a 5% trigger, so confirm the November certification before you fix a 2026 number in a pro forma. Even at investor rates the burden is low by national standards, which is part of why Colorado rentals pencil at coverage ratios that would fail in a high-tax state.
When does my Colorado valuation reset, and when can I fight it?
Real property is revalued every odd-numbered year and notices of valuation are mailed by May 1. CRS 39-5-122(2) requires a real property protest to be postmarked, delivered, or given in person by June 8, and the assessor answers by the last regular working day in June, or by August 15 in counties that elected the alternate procedure. On a long hold that biennial reset is the single largest swing in your expense line, and June 8 is a hard date, not a soft one. Put it on the calendar the year you buy. What comes after the assessor, at the county board of equalization and beyond, has its own deadlines worth confirming with property tax counsel rather than assuming.
Why does insurance decide so many Colorado DSCR files?
Because it is the fastest-growing expense in the state and it lands straight on the coverage ratio. Colorado premiums have grown about 100.8% since 2020, the largest increase of any state, with an average annual premium near $4,072 for $300,000 of coverage on Federal Insurance Office data, sixth-costliest in the country and up 58% from 2018 to 2023. The driver is hail, not wildfire: a Division of Insurance analysis published in February 2026 puts 26% to 54% of premium down to hail depending on county, roughly half along the Front Range, against about 1% for wildfire in Denver. Two consequences. First, a DSCR calculated on last year's premium can miss. Second, roof age and a percentage-based hail deductible will shape the quote, so get a bindable number on the specific address before you size the loan.
Which Colorado rental market should I underwrite to?
Yours, not the state. The law layer on this page is identical everywhere in Colorado, but rent, vacancy, and basis are not. Denver carries the deepest rental demand and the highest entry price, Colorado Springs runs a lower basis with military-driven tenancy, and Fort Collins is a smaller university-anchored northern market with tighter supply. Those differences change the coverage ratio far more than anything statutory does. For rent and market conditions go to Denver DSCR rental loans, Colorado Springs DSCR rental loans, or Fort Collins DSCR rental loans, then bring the lease and the tax and insurance quotes back here.
What does Colorado state tax do to net rental income?
Colorado taxes individual income at a flat 4.4% of federal taxable income, with temporary TABOR-triggered cuts in some years, so the exact number can move a few hundredths year to year. Corporate income is taxed at the same flat 4.4%. There is no franchise tax, no gross receipts tax, and no entity-level net worth tax on LLCs, so a pass-through owner pays the flat individual rate and a SALT-parity pass-through entity election exists. For an out-of-state owner that is a simpler filing picture than most states, but it is a real filing obligation, not a free pass. Have a CPA who files Colorado returns price your own position before you buy.
What credit score do I need for a Colorado DSCR loan?
Credit starts at 640 on this program. It is a real threshold, unlike our asset-based loans where there is no minimum score, because a 30-year rental loan is priced off the borrower as well as the property. Above the floor, score mostly affects pricing and leverage rather than the yes or no. There is no hard credit pull to start. The property still has to carry itself, with DSCR from 0.75. Subject to underwriting.
How much do I put down on a Colorado rental?
20% at maximum leverage. We go up to 80% LTV, so on a $400,000 Colorado rental that is $320,000 from us and $80,000 from you (400,000 x 80% = 320,000), before closing costs. Add the documentary fee, the flat $43 per document recording charge, and a real hail-exposed insurance quote. Loans run $100,000 to $3,000,000 on 30-year fixed or 5, 7, and 10-year ARM terms, with flexible prepay structures. Subject to underwriting.
How fast does a Colorado DSCR loan close?
Typically 2 to 3 weeks. It is slower than our fix and flip and bridge files because a long-term rental loan needs an appraisal with a rent schedule, a lease, and a bindable insurance quote. Colorado closes through a title company escrow desk rather than an attorney, and title rates here are filed by each underwriter rather than set by the state, so quotes differ and it is worth getting more than one. Subject to underwriting.
Local rules move. Every tax rate, fee, ordinance and market figure here comes from a primary source and carries the date we read it, and we correct them as the rules change. Where a number is mid-change or we could not verify it, we say so rather than guess. Before you commit a budget, confirm anything that drives it with the city or county, and talk to your attorney or CPA on questions of law or tax.
Published by USA Mortgage Funding, LLC, NMLS #152588. Researched from primary sources by our team, drafted with AI assistance, and every figure checked against its source before publishing. Where an answer rests on a public record, that record is linked under it. Figures read on 2026-08-12.
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