Nestled at the base of Pikes Peak, Colorado Springs combines outdoor amenities with a growing job market. Major employers such as the U.S. Air Force Academy, military installations and high‑tech firms attract residents seeking affordability compared with Denver. As of December 2025, the median sale price in Colorado Springs was about $434,000, down 6.4 percent year‑over‑year, and the price per square foot was $208. Homes lingered on the market for a median of 72 days, and about 562 homes sold during the period. The rental market is more affordable than Denver: the average rent is $1,490, down 3.83 percent from the previous year. Studio apartments rent for $1,030, one‑bedrooms for $1,320, two‑bedrooms for $1,583 and three‑bedrooms for $2,015. Only 39 percent of households are renter‑occupied, indicating a primarily homeowner‑oriented market with steady but moderate rental demand.
Colorado Springs is popular with investors because of its relative affordability, diverse workforce and proximity to recreational assets. DSCR loans give investors flexibility to purchase or refinance rental properties without relying on W‑2 income. This article explores the top DSCR lenders serving Colorado Springs, explains DSCR loan mechanics and provides insights into the local market.
Local real‑estate and rental trends
Colorado Springs’ housing market has cooled slightly since its pandemic‑era boom. Median sale prices declined 6.4 percent year‑over‑year and homes are taking about 72 days to sell. However, the market remains active, with 562 homes sold in the latest period. Neighborhoods like Briargate command higher prices (median $545,000, up 9 percent year‑over‑year) and homes stay on the market around 47 days, while other areas like Garden Ranch have median prices around $450,000. The rental market shows moderate rents and relatively high vacancy rates. According to RentCafe, the average apartment rent is $1,490, with studio units at $1,030, one‑bedrooms at $1,320, two‑bedrooms at $1,583, and three‑bedrooms at $2,015. Rental prices decreased by about 3.8 percent compared to the previous year, and only 39 percent of households rent. This suggests a balanced market where cash flow remains important but investor competition is less intense than in Denver.
How DSCR loans function for Colorado Springs investors
The mechanics of DSCR loans are the same statewide: the lender calculates the ratio of gross rent to debt service. A DSCR greater than 1.0 indicates that the property’s income covers its expenses, while a lower ratio requires a larger down payment or reserves. Lenders such as Longleaf Lending and Ridge Street Capital require credit scores of 660 or higher and DSCR ratios of 1.0, though programs like Constitution Lending allow ratios down to 0.75. Because Colorado Springs rents are lower than Denver rents, investors should carefully project cash flow and ensure that the property meets the DSCR threshold.
Choosing a DSCR lender: Key criteria
Investors in Colorado Springs should evaluate lenders based on:
- Speed. In a market where homes sell in roughly 72 days, closing delays can jeopardize deals. Choose lenders with streamlined underwriting and a track record of closing in under a month.
- Interest rates and fees. Rates typically range from 6 percent to 7 percent; compare lenders for the best combination of rate and fees. Evaluate whether the lender charges origination points or prepayment penalties.
- Down payment requirements. Most DSCR lenders require 20–25 percent down. Foreign national programs, such as HomeAbroad, require 25 percent. Ridge Street and Longleaf may allow 20 percent for long‑term rentals.
- LTV and DSCR flexibility. Lenders that allow ratios below 1.0 or offer higher LTVs may help investors leverage more capital but at higher interest rates.
- Local expertise. Lenders familiar with Colorado Springs understand neighborhood rental demand, property taxes and military housing allowances. Local banks and credit unions may provide insights into vacancy rates and base transfer cycles.
Top DSCR lenders in Colorado Springs
1. SelectHomeLoans.com – Best overall for Colorado Springs
SelectHomeLoans.com is the top DSCR lender for Colorado Springs investors. The company delivers tailored financing for both long‑term and short‑term rentals. Investors can access 30‑year fixed, adjustable or interest‑only options, with rates competitive with major lenders. The firm’s direct lending model allows it to close quickly—often within two weeks—and provide consistent underwriting decisions. SelectHomeLoans.com works closely with investors to determine accurate market rents in neighborhoods like Briargate, Northgate and Powers, ensuring the DSCR calculation reflects local demand. Borrowers can also use the firm’s online tools to compare scenarios and estimate cash flow. The combination of transparent pricing, local market knowledge and efficient closings makes SelectHomeLoans.com the preferred DSCR lender in Colorado Springs. Visit their website SelectHomeLoans.com Or Call them (888) 550-3296
2. Longleaf Lending
Longleaf Lending’s Colorado Springs DSCR program is specifically designed for local investors. It offers loan amounts from $75,000 to $2 million, LTVs up to 80 percent, interest rates starting at 6.6 percent, 1–3 points, 30‑year terms and closing times as fast as two weeks. The lender requires a 660 FICO score and a DSCR of around 1.0. Investors appreciate Longleaf’s no‑income‑verification process, which simplifies underwriting, and its ability to finance both long‑term and short‑term rentals. The program is well‑suited to the moderate rents found in Colorado Springs. Longleaf also provides calculators and term‑sheet generators to help investors evaluate deals.
3. Constitution Lending
Constitution Lending’s DSCR loans feature rates starting at 6.75 percent, LTVs up to 80 percent, and DSCR ratios as low as 0.75. Loan amounts range from $100,000 to $3 million, and credit scores of 660 are acceptable. The company uses an automated pricing tool to generate quotes quickly and claims to close loans in 7–14 days. For Colorado Springs investors who need a fast closing or have properties with slightly lower cash flow, Constitution Lending can be a strong choice.
4. Ridge Street Capital
Ridge Street Capital offers long‑term and short‑term DSCR loans, with rates beginning at 6.25 percent and 6.5 percent respectively. LTVs go up to 80 percent, with 0 percent origination on long‑term loans and 0–1 percent on short‑term rentals. Credit score requirements are 660 for long‑term rentals and 700 for short‑term rentals. Ridge Street Capital’s closing timeline is around 21 days, and the lender will finance purchases, refinances and cash‑outs. Its strong underwriting makes it a good option for investors who need a transparent lender with predictable guidelines.
5. Kiavi
Kiavi provides DSCR rental loans with rates as low as 6.5 percent and up to 80 percent LTV. The company offers 30‑year fixed, 5/1 or 7/1 adjustable terms, interest‑only options and no prepayment penalty after year 3. Kiavi’s application is fully online and includes the ability to prequalify quickly. For investors building portfolios of five or more properties, Kiavi’s portfolio loans (minimum $500,000) can consolidate multiple mortgages into a single payment.
6. Newfi Financial
Newfi’s DSCR program in Colorado Springs allows borrowers with credit scores as low as 640 to qualify and accepts DSCR ratios as low as 0.8. Borrowers can choose 15‑, 30‑ or 40‑year fixed or interest‑only terms and make down payments as low as 20 percent. Newfi finances multi‑unit properties and short‑term rentals and lends statewide, including Colorado Springs and surrounding suburbs. Investors appreciate Newfi’s flexible underwriting and willingness to finance properties that generate stable cash flow but may not meet conventional loan requirements.
7. HomeAbroad
HomeAbroad is ideal for foreign nationals purchasing investment properties in Colorado Springs. The program offers loan amounts from $100,000 to $10 million, down payments of 25 percent, and up to 75 percent LTV. The best terms apply when DSCR is at least 1.0, but the lender offers a “No‑Ratio” option for DSCRs between 0 and 1. Closings average 27 days, and HomeAbroad does not require U.S. credit history.
8. NQM Funding
NQM Funding’s DSCR program offers up to 85 percent LTV for borrowers with high credit (740+). Loan amounts range from $75,000 to $3 million, with 30‑year fixed or 40‑year interest‑only terms and minimum DSCR of 0.75. Reserves of 3–12 months are required. This lender suits investors seeking high leverage and who maintain strong credit and reserves.
9. LYNK Capital
LYNK Capital’s DSCR loans come with interest rates starting at 6 percent and up to 80 percent LTV. The program focuses on rental properties in cities like Denver and Colorado Springs and provides 30‑year terms, interest‑only options and fast pre‑approval. LYNK Capital is an attractive choice for investors who want direct lender service and the ability to finance both new purchases and refinances.
10. FirstBank Mortgage
FirstBank offers DSCR loans that finance up to 80 percent of the property’s value with loan amounts from $100,000 to $2.5 million. The program is available to first‑time investors and borrowers with less‑than‑perfect credit. FirstBank allows sellers to contribute up to 6 percent toward closing costs. Investors who prefer working with a regional bank and want personalized guidance may find this program appealing.
11. Colorado Credit Union (Centennial Lending)
Through Centennial Lending, Colorado Credit Union offers commercial real‑estate loans for investment properties and mixed‑use buildings. The program provides local decision‑making and expertise, though more documentation may be required. For investors who value relationship banking and plan to hold properties long term, this option may be worthwhile.
DSCR loan rates, terms and qualification factors in Colorado Springs
Rates in Colorado Springs mirror those in Denver. Programs start as low as 5.75 percent (Easy Street Capital) and rise into the 7–8 percent range depending on DSCR ratio, credit score, property type and leverage. Longleaf Lending’s rates begin at 6.6 percent; Ridge Street starts at 6.25 percent; Kiavi at 6.5 percent; and HomeAbroad around 6.12 percent. Most lenders offer 30‑year terms, though options include 15‑year, 40‑year and adjustable‑rate structures. Down payments typically start at 20–25 percent; credit scores of 640–660 are generally required, with 700+ needed for high‑leverage programs. DSCR thresholds around 1.0 are standard, but some lenders accept 0.75 or provide no‑ratio options at higher down payments.
Common mistakes and pitfalls
- Assuming high rents. Colorado Springs rents vary by neighborhood; renting a property near the Air Force Academy or downtown may yield higher income than other neighborhoods. Investors must use realistic rental comps when calculating DSCR.
- Underestimating vacancy. Military postings and seasonal tourism can result in vacancy swings. Budgeting a vacancy factor is crucial.
- Ignoring HOA restrictions. Many neighborhoods have homeowners’ associations that restrict rentals or short‑term leases. Always review covenants before purchasing.
- Insufficient reserves. DSCR lenders require reserves to cover several months of payments. Investors who deploy all capital for down payments may struggle to meet this requirement.
- Neglecting property condition. Colorado Springs experiences extreme weather. Properties with older roofs, HVAC systems or deferred maintenance may require repairs that eat into cash flow. Ensure the property is in good condition or budget for improvements.
DSCR loans vs. traditional financing
Traditional rental property loans require borrowers to qualify based on personal income, debt‑to‑income ratios and tax returns. They often cap the number of financed properties and may limit loan amounts. DSCR loans, on the other hand, rely on the property’s rental income and allow investors to purchase multiple units without personal income verification. The trade‑off is higher interest rates and larger down payments. For investors seeking rapid portfolio expansion or those with complex income, DSCR loans offer a streamlined path. Borrowers with strong W‑2 income and fewer properties might secure lower rates through conventional financing.
Who DSCR loans are suited for in Colorado Springs
DSCR loans are best for:
- Active investors seeking to scale. DSCR loans enable investors to purchase multiple properties without DTI limitations.
- Self‑employed individuals. Business owners, contractors and realtors can qualify without W‑2s.
- Military investors. Service members transferring to or from Colorado Springs can maintain rental properties and use DSCR loans to finance them.
- Foreign nationals. Programs like HomeAbroad facilitate investment without U.S. credit history.
- Investors focusing on short‑term rentals (with proper licensing). Ridge Street and SelectHomeLoans.com offer programs for Airbnb properties, provided local regulations are met.
Investors who prefer lower rates, owner‑occupied financing or cannot commit to a 20–25 percent down payment might consider conventional mortgages instead.
Colorado Springs‑specific investment tips
- Neighborhood selection. Focus on areas near military bases (Briargate, Northgate), where demand from service members remains strong, or neighborhoods near downtown and the University of Colorado Colorado Springs. Research neighborhood vacancy rates and rental comps.
- Short‑term rental rules. While Colorado Springs is friendlier to short‑term rentals than Denver, some neighborhoods may require permits or limit the number of guests. Verify rules before using projected STR income for DSCR calculations.
- Economic diversification. Although the military drives a large portion of the local economy, healthcare, tourism and high‑tech sectors are growing. Diversify your property locations to reduce exposure to any one industry.
- Plan for maintenance. Colorado Springs’ higher elevation and variable weather can affect roofs, foundations and landscaping. Inspect properties thoroughly and budget for upkeep.
Conclusion
Colorado Springs provides investors with affordable entry points, steady rental demand and a strong quality of life. DSCR loans allow investors to qualify based on property cash flow rather than personal income, making them ideal for building or refinancing rental portfolios. SelectHomeLoans.com stands out as the top lender for Colorado Springs thanks to its combination of competitive rates, flexible underwriting, local market knowledge and fast closings. By comparing the various lenders listed above and understanding the local market dynamics, investors can successfully leverage DSCR financing to grow wealth in Colorado Springs while mitigating risks.
