DSCR (Debt Service Coverage Ratio) refinance is the go-to product for Colorado investment property owners who want to pull equity without personal income documentation. The property qualifies based on rental income alone — no W-2s, no tax returns, no personal DTI calculation.
What DSCR refinance offers
- Qualify on rental income only — no personal income docs
- Cash-out up to 75–80% LTV
- Rate-and-term up to 80% LTV
- Close in an LLC — most programs allow (and prefer) LLC ownership
- Short-term rental income accepted on many programs
- No limit on number of financed properties on most DSCR lenders
- Foreign national and ITIN borrowers eligible on select programs
Where DSCR refinance works best in Colorado
Short-term rental markets: Telluride, Steamboat Springs, Breckenridge, Crested Butte, Vail, Aspen, Winter Park, Frisco, Silverthorne, Keystone, Snowmass, Pagosa Springs. STR income is typically underwritten via AirDNA or comparable market data.
Long-term rental markets: Grand Junction, Pueblo, Colorado Springs, Denver metro, Fort Collins, Greeley. Long-term rental income is verified via lease and rent survey.
Cash-out use cases
- Down payment on the next investment property
- Portfolio expansion in a new market
- Renovations or additions that increase rental income
- Debt consolidation at a lower blended rate
FAQs
Can I close a DSCR refinance in an LLC?
Yes — most DSCR programs allow (and often prefer) closing in an LLC. If your current mortgage is in your personal name and you want to move title to an LLC, we handle the transfer at closing.
Do I need tax returns for a DSCR refinance?
No. DSCR qualification is based on property rental income vs. property expenses (PITIA). Personal income, W-2s, and tax returns are not required.
What DSCR ratio do I need?
Most programs require a DSCR of 1.0 (rental income equals PITIA) or higher for best pricing. Sub-1.0 DSCR is available on some programs at reduced LTV and higher rate.
Can I use short-term rental income to qualify?
Yes — many DSCR lenders now underwrite short-term rental income via 12-month AirDNA or comparable market analysis. STR-friendly programs are common in Colorado mountain resort markets.
Related: DSCR loans overview · Investment property loans Colorado · Refinance Colorado hub · Cash-out refi to buy investment property