Mile High Home Group – Welcome to Denver

DSCR loans qualify investment properties based solely on their rental income covering debt—typically needing 1.0-1.25x the mortgage payment—bypassing personal income, DTI, or tax returns, making them ideal for scaling portfolios in the Colorado housing market’s current balance. With 15+ years in Denver real estate and thousands of transactions, I’ve structured DSCR financing for clients building Littleton real estate duplexes and Highlands Ranch single-family rentals, where cash flow trumps W-2s amid steady metro appreciation.

How DSCR Works

Lenders calculate a debt service coverage ratio: projected rents divided by PITI (principal, interest, taxes, insurance, HOA). At 1.25x, a $3,000/month rent covers $2,400 payment. Use appraiser or Rentometer comps for income; no personal quals needed. Down payments run 20-25%, rates 0.5-1% above conventional (around 7-8% now), terms 30 years fixed or 5/1 ARMs.

Perfect for investors with maxed personal debt or self-employed gaps common in Denver real estate flips.

Key Advantages in Colorado

Colorado’s strong rents ($2,200 median single-family) shine: DTC-area townhomes yield 1.3x coverage easily. No reserves beyond 2-6 months for some lenders. True no-income verification speeds closings to 21-30 days. In Highlands Ranch real estate, $400 HOAs fit seamlessly if rents adjust.

Downsides: higher rates, limited to investments (no owner-occupy), and sensitivity to vacancy assumptions (use 5-10% buffer).

Denver Metro Applications

Littleton real estate triplexes under $900K often hit 1.2x with $4,500 rents. Target Class B properties near C-470 for tenant stability. 2026’s forecasted inventory growth favors DSCR buyers over financed retail—lock before rates shift. Pair with BRRRR: buy, rehab, rent, refi cash out via DSCR.

DSCR vs. Traditional Table

Feature	DSCR Loan	Conventional Investment
Qualification	Rental income only	Personal DTI/tax returns
Down Payment	20-25%	15-25%
Reserves	2-6 months	6-12 months
Close Time	21-30 days	45+ days
Best For	Portfolios ​

Practical Steps from Experience

Pre-screen properties: run Rentometer + Zillow comps before offers. Shop 3-5 specialty lenders (NewRez, Angel Oak, Citadel)—rates vary 0.75%. Document with leases or market rents; Colorado’s contract law requires accurate disclosures. Build 1.25x buffer for maintenance/vacancy. LLC ownership streamlines; I’ve closed dozens, fostering client friendships through portfolio growth.

Avoid over-improving—focus value-add like ADUs permitted in Denver real estate. Monitor weekly for lender promos.

If you’d like honest guidance, market insight, or a no-pressure conversation about DSCR loans and your situation, reach out—I’m here. Visit www.MileHighHomeGroup.net to search properties, explore Denver, learn more about me and connect.