Telluride, Colorado has one of the highest short-term rental yields in the country — and DSCR loans are the primary financing tool investors use to access this market without W-2 income documentation.
What Is a Dscr Loan?
A Debt Service Coverage Ratio (DSCR) loan qualifies you based on the property's rental income rather than your personal income. No W-2s, no tax returns, no employment verification. The lender calculates whether the property's expected rent covers the mortgage payment.
DSCR = Monthly Rental Income ÷ Monthly PITI Payment Most lenders require DSCR ≥ 1.0 (income covers debt service). Some programs allow 0.75 DSCR with higher down payment.
Why Dscr Works in Telluride
Telluride properties generate strong rental income from ski season (December–April) and increasingly from summer visitors. AirDNA data regularly shows Telluride STR properties with gross rental yields of 6–9% annually. On well-located Mountain Village condos and Telluride town properties, DSCR ratios typically land between 1.0–1.4.
2026 Loan Limits in San Miguel County
San Miguel County (Telluride, Mountain Village, Norwood) has elevated limits: • Conforming limit: $994,750 (highest standard CO limit outside Eagle/Pitkin/Routt/Summit) • FHA limit: $1,045,350
Loans above $994,750 are jumbo. DSCR programs are available on both conforming and jumbo amounts.
Typical Dscr Requirements for Telluride
- Down payment: 25–30% (resort market overlay)
- Credit score: 680–700+ minimum
- DSCR ratio: 1.0+ preferred; some programs allow 0.75 with larger down
- Income documentation: None required
- Entity vesting: Can close in LLC or trust
- STR income documentation: AirDNA market projection or 12 months of Airbnb/VRBO statements
Str Permit Considerations
San Miguel County and the Town of Telluride regulate short-term rentals. Permits are required and the permit pool may be limited in certain zones. Always verify STR permit availability for the specific address before writing an offer. We factor permit status into the financing structure.