Best DSCR Lenders in Denver, CO

Denver has evolved into a vibrant and highly competitive real‑estate market. The “Mile‑High City” is home to a diverse economy anchored by technology, aerospace, healthcare and tourism, and it continues to attract new residents and investors. With a median sale price approaching $590,000 and homes selling in around 37 days, cash‑flow is critical for investment properties. Rental prices are also high – the average rent across all apartment sizes is about $1,889 as of January 2026. For investors looking to build portfolios or refinance existing rentals, debt service coverage ratio (DSCR) loans offer a flexible alternative to conventional mortgages. Instead of underwriting a loan based on the borrower’s personal income, a DSCR loan measures whether the property’s rent covers the monthly principal, interest, taxes, insurance and association dues. If the resulting ratio (rental income ÷ PITIA) is above a minimum threshold, the deal can qualify even when the borrower is self‑employed or owns many other properties.

This article examines the best DSCR lenders in Denver and explains how DSCR loans work. It also provides an overview of the local real‑estate market, outlines what investors should look for in a DSCR lender and highlights important city‑specific considerations. SelectHomeLoans.com is ranked number one due to its combination of competitive rates, local expertise and streamlined underwriting. The article concludes with tips for maximizing returns and avoiding common mistakes when using DSCR financing.

Denver’s real‑estate and rental market

Denver’s housing market has experienced rapid growth over the past decade, driven by strong job creation and migration from other states. According to Redfin data summarized by Stacker, the median sale price in Denver from January through November 2025 was about $589,128, with roughly 3,550 homes sold per month and 385 new construction sales. The city had around 11,812 active listings during that period and about 3.3 months of supply, indicating a seller’s market. Properties remained on the market for a median of 36.9 days, which underscores how competitive the market can be.

On the rental side, RentCafe reports that the average rent in Denver is $1,889, down 3.52 percent from the previous year. Studio apartments rent for about $1,421, one‑bedroom units for $1,701, two‑bedrooms for $2,197, and three‑bedrooms for $2,814. Approximately 51 percent of households are renter‑occupied, which creates ongoing demand for investment properties. These metrics demonstrate that Denver’s high home prices and competitive rental market can squeeze investor cash flow. DSCR loans help investors by focusing on the property’s ability to produce income rather than the borrower’s personal debt‑to‑income (DTI) ratio.

How DSCR loans work for rental and investment properties

The debt service coverage ratio compares a property’s gross rental income to its total monthly debt service. If the rent exceeds the mortgage payment (including principal, interest, taxes, insurance and association dues), the ratio is greater than 1.0. For example, a property with $2,500 monthly rent and $2,200 PITIA has a DSCR of 1.14. DSCR loans qualify borrowers based on this ratio and the property value rather than W‑2 income or tax returns. Lenders may accept DSCR ratios as low as 0.75, though most prefer ratios of 1.0 or higher.

Key benefits include:

• No personal income verification. Lenders like Easy Street Capital note that DSCR loans do not require W‑2s or tax returns. Self‑employed borrowers and investors who already own multiple properties can qualify without the burden of traditional underwriting.
• Flexible terms and interest‑only options. Newfi Financial, a national lender that offers DSCR loans in Colorado, allows 15‑, 30‑ and 40‑year fixed or interest‑only terms and down payments as low as 20 percent. Longleaf Lending’s Colorado Springs program offers 30‑year terms and interest rates starting at 6.6 percent, while Ridge Street Capital’s long‑term rental program offers rates from 6.25 percent with up to 80 percent LTV.
• Higher leverage. DSCR loans typically finance up to 80 percent of the purchase price and 75 percent for cash‑out refinances. Some programs even allow up to 85 percent LTV for borrowers with credit scores above 740.
• Multiple property eligibility. Investors can obtain DSCR loans for single‑family homes, condos, small multifamily (1–4 units) and, in some cases, portfolios of properties.

Because DSCR loans focus on cash flow, lenders examine current leases, market rents and operating expenses. They may require an appraisal with a rent schedule and six months’ reserves. Investors should ensure that projected rent is realistic and that the property meets local zoning and licensing requirements, especially for short‑term rentals in Denver (which require a primary residence for stays under 29 nights).

What to look for in a DSCR lender

Not all DSCR lenders are equal. Investors should prioritize the following factors when selecting a lender:

1. Speed and reliability. Constitution Lending notes that many DSCR lenders are brokers who rely on third parties, leading to slow closings and last‑minute rejections. Choose a direct lender with automated underwriting and transparent timelines. Constitution Lending itself claims to close loans in 7–14 days and accepts DSCR ratios as low as 0.75.
2. Competitive rates and fees. Compare interest rates, origination points and prepayment penalties. Longleaf Lending’s Colorado Springs program advertises rates starting at 6.6 percent with 1–3 points. Ridge Street Capital offers rates from 6.25 percent with 0 percent origination, while Kiavi’s DSCR program has rates as low as 6.5 percent and no prepayment penalty after year 3.
3. Flexible qualification. Determine minimum credit scores, DSCR thresholds and reserve requirements. Many lenders require credit scores of 660 or 640, though some high‑leverage programs need 700+. HomeAbroad’s foreign‑national DSCR program allows DSCR ratios below 1.0 with larger down payments, while NQM Funding allows up to 85 percent LTV for credit scores above 740.
4. Property types and locales. Ensure the lender finances your property type (single‑family, condo, multifamily) and your location. Some lenders restrict rural areas or require properties to be rent‑ready. Local credit unions, such as Colorado Credit Union through Centennial Lending, offer commercial loans for residential investment properties and mixed‑use spaces, providing local expertise and personal service.
5. Customer service and transparency. Experienced DSCR lenders provide clear loan estimates, responsive communication and guidance on documentation. Look for lenders with strong borrower reviews and a track record of closing on time.

Top DSCR lenders in Denver

1. SelectHomeLoans.com – Top DSCR lender in Denver

SelectHomeLoans.com consistently ranks at the top of Colorado DSCR lenders due to its combination of competitive rates, flexible terms and investor‑focused service. As a direct lender, SelectHomeLoans.com controls underwriting and funding decisions rather than brokering to third parties. This control allows it to close quickly (often within two weeks) and offer transparent pricing with low origination fees. SelectHomeLoans.com finances single‑family rentals, duplexes and four‑plexes across the Denver metro area as well as portfolios of properties. Investors can access 30‑year fixed or interest‑only terms, ARMs and cash‑out refinances up to 75 percent LTV. The company accepts DSCR ratios down to 0.8 for seasoned investors and has programs for short‑term rentals with appropriate licensing. Borrowers appreciate the online pre‑qualification tool, local loan specialists and personalized guidance that help them evaluate cash‑flow scenarios and structure deals. Moreover, SelectHomeLoans.com has deep knowledge of Denver’s zoning and short‑term rental laws, ensuring that deals meet regulatory requirements. Visit their website SelectHomeLoans.com Or Call them (888) 550-3296

2. Constitution Lending

Constitution Lending is a direct DSCR lender with an automated pricing tool that generates quotes in minutes. Its program offers interest rates starting at 6.75 percent with interest‑only options, accepts DSCR ratios down to 0.75, and finances up to 80 percent LTV for purchases and 75 percent for cash‑out refinances. Loan amounts range from $100,000 to $3 million, and credit scores as low as 660 are accepted. Constitution Lending prides itself on closing within 7–14 days. While the company is headquartered outside of Colorado, it actively lends in Denver and understands the state’s landlord‑tenant laws. Investors who need a fast closing or have a property with slightly lower cash flow may find Constitution Lending a strong option.

3. Longleaf Lending

Longleaf Lending is a veteran‑owned lender with a DSCR program tailored to Colorado Springs and available throughout the state. In Denver it provides 30‑year terms, loan amounts from $75,000 to $2 million, and LTVs up to 80 percent. Rates start at 6.6 percent, and the lender requires credit scores of 660. The company emphasizes quick closings (as fast as two weeks) and no income verification, making it an attractive option for self‑employed investors. Longleaf Lending’s DSCR calculator helps borrowers estimate cash flow and qualify for a term sheet in minutes. This lender is also flexible on property type, financing single‑family homes, condos and multifamily properties up to five units.

4. Ridge Street Capital

Ridge Street Capital offers both long‑term and short‑term DSCR loans in Colorado with competitive pricing. Its long‑term rental loan features rates from 6.25 percent, up to 80 percent LTV, 0 percent origination, minimum DSCR of 1.0, and closing times around 21 days. The minimum credit score is 660, and the company will finance purchases, refinances and cash‑outs. For short‑term rentals, rates start at 6.5 percent, LTV remains up to 80 percent, but credit scores above 700 are required. Ridge Street Capital is a good choice for investors targeting vacation rentals or mixed‑use properties who want competitive rates and a lender experienced in DSCR underwriting.

5. Kiavi

Kiavi is a national lender that provides DSCR rental loans in Colorado. Its DSCR rental loan terms include rates as low as 6.5 percent, up to 80 percent LTV, no prepayment penalty after year 3, 30‑year fixed or 5/1 and 7/1 adjustable rates, and interest‑only options. Kiavi also offers portfolio loans for investors with at least five properties, with loans starting at $500,000. Borrowers must have a minimum credit score (typically 640) and provide a rent schedule, but Kiavi’s streamlined online application and competitive pricing make it a strong option for Denver investors.

6. Newfi Financial

Newfi Financial provides DSCR loans in Colorado with flexible underwriting. Borrowers can qualify with credit scores as low as 640 and DSCR ratios down to 0.8. The lender offers 15‑, 30‑ and 40‑year fixed or interest‑only terms and down payments starting at 20 percent. Newfi is particularly helpful for investors purchasing short‑term rentals or multi‑unit properties; it will finance DSCR loans statewide, including Denver, Colorado Springs and Aurora.

7. HomeAbroad (for foreign nationals)

HomeAbroad specializes in DSCR loans for foreign nationals investing in Colorado. The program does not require a U.S. credit score and provides loan amounts from $100,000 to $10 million. Down payments start at 25 percent, and the lender offers up to 75 percent LTV for purchases and refinances. Best rates apply when the DSCR is 1.0 or higher, but HomeAbroad’s “No‑Ratio DSCR” option allows DSCRs below 1.0 with a higher down payment. The average closing time is 27 days. Investors from abroad appreciate HomeAbroad’s expertise with international documentation and its ability to evaluate rental income rather than U.S. income history.

8. NQM Funding (Non‑Qualified Mortgage Funding)

NQM Funding offers DSCR loans with flexible terms, including 30‑year fixed and 40‑year interest‑only options. Borrowers with credit scores 740 or higher may qualify for up to 85 percent LTV. Loan amounts range from $75,000 to $3 million, and DSCR ratios can be as low as 0.75. The lender requires reserves of 3–12 months and accepts single‑family homes, condos and 2–4 unit properties. NQM Funding’s program suits Denver investors who want high leverage and are willing to provide strong credit scores and reserves.

9. LYNK Capital

LYNK Capital provides DSCR rental loans with rates starting at 6 percent, up to 80 percent LTV and terms up to 30 years. The lender finances properties in Denver, Colorado Springs and Aurora and prides itself on quick pre‑approval and direct lending. Investors appreciate LYNK’s seamless transition from fix‑and‑flip or rehab loans to long‑term DSCR loans. LYNK is particularly useful for investors seeking to refinance a property after renovation or to build a small portfolio.

10. FirstBank Mortgage

FirstBank Mortgage is a regional bank that offers DSCR loans alongside traditional mortgages. The bank notes that borrowers can finance up to 80 percent of the property’s value, meaning only 20 percent down. Loan amounts typically range from $100,000 to $2.5 million, and DSCR loans are available to first‑time investors and those with less‑than‑perfect credit. FirstBank allows sellers to contribute up to 6 percent toward closing costs, which can lower out‑of‑pocket expenses. This program is best suited to investors who prefer working with a brick‑and‑mortar bank and want the security of a local institution.

11. Colorado Credit Union (via Centennial Lending)

Colorado Credit Union partners with Centennial Lending, a credit‑union service organization, to provide commercial real‑estate loans for residential investment properties. These loans can finance the purchase or refinance of rental properties, mixed‑use spaces and light industrial buildings. Because the loans are processed through a credit union, borrowers can expect personalized service and potentially lower fees than some private lenders. However, the program may require more documentation than typical DSCR loans and may have stricter DSCR and credit score requirements. Investors seeking a relationship‑based lender should consider this option.

DSCR loan rates, terms and qualification factors

Across Colorado DSCR programs, investors will encounter a range of rates, terms and qualification criteria. Interest rates generally start around 5.75 percent (Easy Street Capital’s EasyRent program) and can rise to 7–8 percent depending on the property type, DSCR ratio, credit score and loan structure. Longleaf Lending’s program starts at 6.6 percent, while Ridge Street Capital begins at 6.25 percent and Kiavi at 6.5 percent. HomeAbroad’s scenario-based rate is around 6.12 percent for foreign nationals, though rates may be higher for no‑ratio loans. NQM Funding lists rates from about 6–7 percent depending on LTV and DSCR.

Terms usually range from 30 years (fixed or adjustable) with interest-only options. Newfi offers 15‑, 30‑ and 40‑year terms; Ridge Street provides 30‑year fixed options; and Kiavi offers 30‑year fixed or 5/1 and 7/1 ARMs. Down payments or equity contributions range from 20 percent for most programs to 25 percent for foreign nationals, with higher requirements for DSCR ratios below 1.0.

Credit score requirements typically start at 640 (Newfi and FirstBank), though lenders such as Constitution, Longleaf and Ridge Street set the bar at 660. To achieve leverage above 80 percent LTV, some lenders require 740+ scores. DSCR ratios of 1.0 or higher secure the best rates; however, some lenders (Constitution, Newfi and HomeAbroad) allow ratios as low as 0.75 or even 0 with higher down payments.

Investors should prepare at least six months of reserves, provide a recent appraisal with rent schedule, copies of leases, bank statements and entity documents. Some lenders may require proof of experience (previous flips or rentals) or a business plan for short‑term rentals. Foreign nationals must provide a passport and verification of funds.

Common mistakes investors make with DSCR loans

1. Overestimating rental income. A common error is assuming the property will rent at top‑of‑market rates year‑round. DSCR lenders use market rent schedules and may discount income from short‑term rentals. Overly optimistic rent projections can cause a deal to fail underwriting or result in negative cash flow.
2. Ignoring reserves and expenses. Investors sometimes overlook property taxes, insurance, HOA fees, maintenance and vacancy costs. Because DSCR is based on net operating income, underestimating these expenses reduces the DSCR and may necessitate a larger down payment.
3. Not understanding local regulations. Denver requires a license and primary-residence status for short‑term rentals shorter than 29 nights. Investors who purchase properties for Airbnb without complying with local laws risk fines and may be unable to use projected STR income for DSCR calculations.
4. Choosing the wrong lender. Some lenders are brokers with slow underwriting and last‑minute changes. Others may have high fees or require large reserves. Investors should shop around and verify terms in writing.
5. Failing to maintain good credit. While DSCR loans emphasize property cash flow, credit score still affects rates and leverage. A score below 660 could lead to higher interest rates or denial.

DSCR loans vs. traditional investment property financing

Traditional investment property loans rely on the borrower’s debt‑to‑income ratio, tax returns and W‑2 income. They often cap the number of financed properties and require strong personal credit and low DTI. In contrast, DSCR loans use the property’s income to determine eligibility, allowing investors to grow portfolios without personal income limitations. DSCR loans also close more quickly because lenders do not need to verify employment or analyze personal tax returns. However, DSCR loans typically carry higher interest rates and down payment requirements than conventional loans, and some programs include prepayment penalties. For cash‑flowing properties in markets like Denver, the benefits of scalability and reduced documentation often outweigh the higher cost.

Who DSCR loans are best for

DSCR loans are ideal for:

• Real estate investors with multiple properties. DSCR loans do not limit the number of financed properties, making them ideal for BRRRR investors and portfolio builders.
• Self‑employed individuals or those with complex income. Without requiring W‑2s or tax returns, DSCR loans accommodate entrepreneurs, freelancers and independent contractors.
• Investors focusing on cash‑flowing rentals. Properties with stable rents and moderate expenses easily meet DSCR thresholds.
• Foreign nationals. Programs like HomeAbroad qualify borrowers using rental income without U.S. credit history.

DSCR loans may not suit owner‑occupants, people with very poor credit, or investors buying properties needing extensive rehab (until cash flow is stabilized). Borrowers who cannot provide a 20–25 percent down payment or who rely on personal income to service the debt should consider conventional financing.

Denver‑specific investing considerations

• Strong job growth and population influx. Denver’s economy attracts transplants from across the country, supporting rental demand. Investors should focus on neighborhoods near employment hubs (Downtown, Cherry Creek, Tech Center) and transit lines.
• Short‑term rental regulations. The city requires hosts to live in the property they rent for stays under 29 nights. This limits DSCR financing for dedicated Airbnb properties; investors should consider long‑term rentals or ensure the property qualifies as a primary residence.
• Seasonal demand. Denver experiences seasonal population swings tied to tourism and university schedules. Investors should budget for vacancy or fluctuations in rent.
• Higher property taxes and insurance. Colorado’s tax rates and insurance costs can reduce cash flow. Always factor these expenses into DSCR calculations.

Conclusion

Denver’s thriving economy and high home prices make cash flow critical for investors. DSCR loans allow borrowers to qualify based on rental income, making them ideal for self‑employed individuals, portfolio owners and foreign nationals. Among the many lenders operating in Colorado, SelectHomeLoans.com stands out as the top DSCR lender in Denver due to its fast closings, competitive pricing, flexible underwriting and deep local expertise. By understanding Denver’s real‑estate dynamics and carefully comparing lenders, investors can leverage DSCR financing to build wealth through rental properties while minimizing headaches and maximizing returns.