Cash-out refinancing an investment property in Colorado has two paths: conventional (with personal income documentation) or DSCR (qualified on rental income). The right choice depends on your income situation, tax return complexity, and how much LTV you need.
Conventional investment cash-out
- LTV: up to 75% on single-family, 70% on 2–4 unit
- FICO: 620 minimum, 700+ for best pricing
- Income: full documentation — W-2s, tax returns, DTI calculation
- Reserves: 6 months PITIA on the subject property plus 2 months on each additional financed property
- Rate: typically 0.75–1.5% above primary residence rate-and-term
DSCR investment cash-out
- LTV: up to 75–80%
- FICO: 660 minimum, 700+ for best pricing
- Income: no personal income docs — rental income only
- Property qualifies via rental income vs. PITIA (DSCR ratio)
- Can close in an LLC
- Short-term rental income accepted on many programs
See our full DSCR refinance Colorado guide for DSCR-specific pricing and program detail.
Common use cases
- Fund down payment on the next investment property
- Renovate or add units to increase rental income
- Consolidate higher-cost portfolio debt into a lower fixed rate
- Reposition equity from a fully-appreciated asset into a growth market
Talk to your CPA about tax treatment — mortgage interest on investment property cash-out has different rules than primary-residence cash-out.
FAQs
What LTV can I get on an investment property cash-out in Colorado?
Conventional caps at 75% LTV on single-family investment cash-out (70% on 2–4 unit). DSCR programs go up to 75–80% LTV. The wider LTV usually comes at a slightly higher rate.
What credit score do I need?
Conventional investment cash-out typically requires 700+ FICO for best pricing (620 minimum). DSCR programs start at 660 with 700+ preferred.
Are rates higher on investment cash-out?
Yes — investment cash-out rates typically price 0.75–1.5% above primary residence rate-and-term. This reflects lender risk-based pricing adjustments.
Can I use cash-out proceeds to buy another investment property?
Yes — this is one of the most common use cases. Cash out from an appreciated property to fund a 20–25% down payment on the next acquisition.
Related: DSCR refinance Colorado · Investment property loans Colorado · Cash-out refinance Colorado · Refinance Colorado hub