short term rental loan Colorado Airbnb DSCR financing

Colorado's ski and mountain towns are among the highest-grossing short-term rental markets in the country. DSCR loans — qualifying on the property's rental income instead of your personal income — are the primary financing tool for STR investors in Colorado.

HOW DSCR LOANS WORK FOR COLORADO STRs

Traditional investment property loans require two years of tax returns, W-2s, and include your rental income only after it appears on your Schedule E. This creates a catch-22: you can't qualify for the loan because you don't yet have the rental income history.

DSCR loans solve this by using market-rate rental projections (from AirDNA, a professional appraiser's rent survey, or your existing operating history) as the qualifying income. If the property's projected monthly rental income covers the mortgage payment, you qualify.

DSCR = Monthly Rental Income ÷ Monthly PITI Most lenders require DSCR ≥ 1.0

Top Colorado Str Markets for Dscr Loans

Breckenridge / Summit County (conforming $1,092,500)
Steamboat Springs / Routt County (conforming $1,089,050)
Telluride / San Miguel County (conforming $994,750)
Vail / Eagle County (conforming $1,249,125)
Aspen / Snowmass / Pitkin County (conforming $1,209,750)
Crested Butte / Gunnison County (conforming $832,750)
Durango / La Plata County (conforming $832,750)
Winter Park / Grand County (conforming $883,200)
Pagosa Springs / Archuleta County (conforming $832,750)

Str Permit Requirements By Market

Every Colorado mountain jurisdiction has its own STR licensing rules. Some (Breckenridge, Telluride) have permit caps. Others (rural county areas) are more permissive. Always verify permit availability for the specific address before writing an offer. We include this check in every Colorado STR deal.

TYPICAL DSCR REQUIREMENTS • Down payment: 20–25% standard; 25–30% in resort/luxury markets • Credit score: 680–720+ • Can close in LLC • No personal income documentation • AirDNA or 12-month operating history for income

Frequently Asked Questions

Can I use a DSCR loan for an Airbnb property in Colorado?

Yes — DSCR loans are specifically designed for this scenario. We use AirDNA market projections or your existing Airbnb/VRBO operating statements to calculate qualifying income. No W-2s or tax returns required. Available in all major Colorado STR markets.

What credit score do I need for a Colorado STR DSCR loan?

Most DSCR programs require 680+ FICO. Best pricing is at 720+. Some programs allow 660 FICO with larger down payments (25–30%). Credit score significantly impacts the rate you receive on DSCR loans.

Can I buy a Colorado STR property in my LLC with a DSCR loan?

Yes — this is one of the key advantages of DSCR over conventional. Most DSCR programs allow (and many prefer) LLC vesting, giving you liability protection. You cannot close a conventional Fannie/Freddie investment loan in an LLC.

What is the minimum DSCR ratio most lenders require for Colorado STR properties?

Most lenders require DSCR of 1.0 or better (rental income equals or exceeds the mortgage payment). Some programs allow 0.75 DSCR with a higher down payment (25–30%). In strong STR markets like Breckenridge and Steamboat, most well-located properties exceed 1.0 DSCR on AirDNA projections. SECTION B: FLORIDA LONG-TAIL PAGES