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Program 02
Rental / DSCR in Denver
For Denver rentals, DSCR loans look at the property.
Hold your rentals with financing that underwrites the asset, not just you. DSCR as low as 0.75, rates from 5.5% interest-only, and 30-year fixed options for single properties or whole portfolios. Denver licenses long-term rentals citywide, and its tax bill can swing hard by tax district, not by city name alone. Business-purpose only, and rates and structure are set in underwriting.
0.75
min DSCR
5.5%
rates from
30-yr
fixed avail.
80%
max LTV
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.
Who it's for
Buy-and-hold investors
Single rentals and portfolios
Short-term rentals considered
Rate/term and cash-out refi
Typical terms
Loan amount$100K to $3M
Max leverageUp to 80% LTV
DSCRFrom 0.75
CreditFrom 640
Term30-yr fixed / 5-7-10 ARM
RateFrom 5.50% IO*
PrepayFlexible structures
*Typical terms, subject to underwriting and market conditions.
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Local FAQ
Rental / DSCR in Denver, answered.
Can I run a Denver DSCR rental as a short-term rental, or does it have to be long-term?
Long-term, in Denver proper, unless you personally live there. Denver's short-term rental license is limited to the licensee's primary residence, defined as the place where a person's habitation is fixed and their usual place of return; a property you own but do not occupy cannot be licensed for stays under 30 days inside Denver city limits. A DSCR file underwritten to nightly-rate income on a non-owner-occupied Denver property is underwriting an income stream the property cannot legally produce, so plan the loan around long-term rent instead. If the property needs work before it can rent at all, our fix and flip loan can fund the acquisition and rehab first, with a DSCR refinance behind it qualifying on the finished property's rent.
Does my Denver rental need a city license before a DSCR loan can close on it?
A license is not required to close, but it is required to operate, and it belongs in the file. Every long-term residential rental inside Denver needs a city rental license, running four years, costing $50 to apply, plus a third-party inspection by a city-registered inspector before the unit can lawfully rent for 30 days or more. Denver raised its maximum fine for an unlicensed rental from $999 to $5,000 per violation in late 2025 and issued its first $5,000 fine on January 14, 2026. Confirm the license number and its inspection date as part of your own diligence before you close a DSCR purchase or refinance on Denver property.
Is the property tax rate the same across the Denver metro, or does it move my DSCR numbers?
It moves them more than most investors expect, and the swing is not even at the county line. Denver's total general mill levy is 79.202 mills, but Douglas County alone publishes 631 separate tax districts for 2025, with total mill levies ranging from 69.821 up to 279.845, roughly a 4x spread on the same assessed value. A $600,000 house in a high-levy Douglas metro district can carry a tax bill about 3.3 times what an identical value carries inside Denver's city levy. Pull the parcel's tax district number from the county assessor before you lock a DSCR pro forma, not the city name on the listing.
Should I underwrite Denver rent off the metro-wide rent index?
No, and it understates what a detached rental actually earns. The all-property-types rent index across the Denver metro is pulled down by the apartment and condo share; as of June 2026 it runs $1,930, while the single-family-only index is $3,018, up 1.0% year over year even as the blended index fell. Against the metro's mid-tier single-family value of $599,059, that works out to about a 6.0% gross yield on detached stock versus 3.9% on the blended figure, our arithmetic on published Zillow index levels, not a cap rate and net of no expenses. A DSCR file underwritten to the blended market rent can turn down a single-family house that actually cash flows.
Do the short-term and long-term rental rules change if I buy in Aurora or Lakewood instead of Denver?
Yes, materially, and none of the four jurisdictions line up. Aurora also limits short-term rentals to a primary residence, with whole-home rental capped at 180 days a year. Lakewood limits its STR license to the owner's primary residence too. Arvada is the outlier: a non-resident investor can hold STR permits on up to three properties citywide, each capped at 240 days a year, under rules that tightened further on May 1, 2026. Unincorporated Jefferson County caps an investor at one licensed STR with a 750-foot buffer between them. A long-term-rental portfolio crossing these lines has to be underwritten jurisdiction by jurisdiction, not as one Denver metro rule.
Does hail risk change how I should structure insurance on a Denver DSCR rental?
Yes, more than wildfire does across most of this metro. A Colorado Division of Insurance analysis found hail accounts for roughly a quarter to over half of homeowners premium along the Front Range, against about 1% for wildfire in Denver proper. Front Range policies commonly carry a separate wind and hail deductible of 1% to 2% of the dwelling limit, higher on an older roof, which on a $500,000 dwelling limit can mean $5,000 to $10,000 out of pocket before a roof claim pays. Require replacement-cost coverage, not actual cash value, and get the roof's age into the file before you size a DSCR loan on Denver collateral.
My credit is in the low 600s. Can I still get a DSCR loan on a Denver rental?
Not on this program yet. DSCR starts at a 640 score. If you are close, the usual answer is lower leverage rather than a decline, and there is no hard credit pull to start. If the property needs work first, an asset-based fix and flip loan carries no minimum score at all, and a DSCR refinance can follow once the Denver rent is in place. Subject to underwriting.
What does 80% LTV actually mean on a Denver DSCR purchase?
It means you bring 20% plus closing costs. We go up to 80% LTV, so on a $600,000 Denver purchase that is $480,000 from us and $120,000 from you (600,000 x 80% = 480,000). Remember the tax district sets the bill here, not the county, so a high-levy parcel eats into the ratio before you get to the loan. DSCR runs from 0.75 and credit from 640. Subject to underwriting.
Can I structure a Denver DSCR loan so I can refinance out of it in a few years?
Yes. Prepay on this program is a flexible structure, not one fixed rule. Tell us the hold you actually plan on and we will price the prepay against it. The term options are a 30-year fixed or a 5, 7 or 10 year ARM, so a Denver rental you intend to season and refinance does not have to sit in a 30-year structure by default. Subject to underwriting.
What is the smallest DSCR loan you will write in Denver?
$100K is the floor, and $3M is the ceiling. That covers most of the metro's detached rental stock. Credit starts at 640 and leverage runs up to 80% LTV. If you hold five or more Denver doors, a portfolio loan starting at $500K may fit the book better than separate DSCR notes. Subject to underwriting.
More Rental / DSCR questions, answered on the program page
Resources
Guides for Rental / DSCR
Rental / DSCR · 5 min read
What Is a DSCR Loan? How Investors Qualify on Rental Income
Read the guide Strategy · 6 min read
Financing the BRRRR Method: Buy, Rehab, Rent, Refinance, Repeat
Read the guide Rental / DSCR · 5 min read
DSCR vs Conventional Loan: Which Is Better for Investment Property?
Read the guide Rates & Costs · 5 min read
Hard Money Loan Rates and Costs, Explained
Read the guide More in Denver
Other programs in Denver
Fix and FlipUp to 90% / 100% rehabGround-Up ConstructionUp to 70% LTV, most statesCRE BridgeUp to $10M, 24-36 moTransactional FundingSame-day double-close capitalBank Statement / No-DocNo tax returns requiredConventional InvestmentNon-owner-occupied investmentPortfolio LoansMultiple properties, one loanCRE PermanentLong-term agency & permSBA Financing7(a) & 504 placement
About the local figures on this page
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 2026-08-15.
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