Unlocking Denver Real Estate: Your Guide to the DSCR Loan for Investors in Denver

DSCR Loan: Denver’s real estate market is dynamic, offering exciting opportunities for savvy investors. From the bustling energy of downtown neighborhoods to the appealing charm of its suburbs, the Mile High City presents a landscape ripe for investment property acquisition. However, navigating traditional financing can often feel like climbing one of Colorado’s fourteeners – challenging, especially if your income doesn’t fit neatly into a conventional lender’s box.

Enter the DSCR loan for investors in Denver. If you’re a real estate investor looking to expand your portfolio in Denver without the hassle of verifying personal income through W-2s or tax returns, this financing tool could be your key to faster growth and greater flexibility.

This comprehensive guide will break down everything you need to know about DSCR loans: what they are, why they’re particularly beneficial for the Denver market, how they work, who qualifies, and how you can leverage them to achieve your investment goals in Colorado’s capital.

What Exactly is a DSCR Loan?

DSCR stands for Debt Service Coverage Ratio. At its core, a DSCR loan is a type of mortgage designed specifically for real estate investors purchasing non-owner-occupied properties. Unlike conventional loans that heavily scrutinize your personal income, employment history, and debt-to-income ratio, DSCR loans focus primarily on one thing: the investment property’s ability to generate enough income to cover its debt obligations.

Think of it this way: the property itself qualifies for the loan, based on its cash flow potential.

The DSCR Formula Explained Simply:

The Debt Service Coverage Ratio is calculated using a straightforward formula:

$ DSCR = \frac{\text{Net Operating Income (NOI)}}{\text{Total Debt Service}} $

Let’s break down those terms:

• Net Operating Income (NOI): This is the property’s expected annual income (gross rents) minus its estimated annual operating expenses.
  • Gross Rents: Usually based on current leases or a market rent analysis (often from an appraisal).
  • Operating Expenses: Include things like property taxes, insurance, HOA dues (if any), property management fees, utilities (if paid by the landlord), and allowances for vacancy and repairs. Importantly, NOI does not include the principal and interest payments of the loan itself – that’s part of the Debt Service.
• Total Debt Service: This represents the total amount of principal, interest, taxes, and insurance (often called PITI) that you’ll pay annually on the proposed loan. Some lenders might also include HOA dues in this calculation.

The Magic Number:

Lenders use the DSCR ratio to assess the risk of the loan.

• DSCR = 1.0x: This means the property’s expected net operating income exactly covers its annual debt payments (break-even).
• DSCR > 1.0x: The property generates more income than needed to cover the debt, indicating positive cash flow. Most lenders prefer to see ratios above 1.0x, commonly looking for 1.15x, 1.20x, 1.25x or higher. A higher ratio signifies a larger cash flow cushion, making the loan less risky for the lender.
• DSCR < 1.0x: The property’s income is not expected to cover the debt service based on standard calculations. While some specialized programs might exist (sometimes called “No Ratio” DSCR loans, often requiring larger down payments), most lenders require a DSCR of at least 1.0x.

The key takeaway? With a DSCR loan for investors in Denver, the focus shifts from your personal finances to the property’s financial performance. This is a game-changer for many investors.

Why Denver Investors Should Seriously Consider DSCR Loans

The unique characteristics of the Denver real estate market make DSCR loans an especially attractive financing option. Here’s why:

1. Navigating Denver’s Competitive and Dynamic Market:

• Speed is Crucial: Denver remains a desirable location, and good investment deals often move quickly. DSCR loans typically close faster than conventional loans because they bypass the extensive personal income verification process. This speed can give you a competitive edge when making offers.
• Strong Rental Demand: Denver continues to attract new residents, driven by job growth, lifestyle appeal, and population expansion. As of early 2025, the rental market remains competitive, with vacancy rates around 4.2% and average rents showing steady increases (e.g., ~$1,935 for a one-bedroom, ~$2,480 for a two-bedroom). This strong demand supports the cash-flow model that DSCR loans rely on. (Source: The Luxury Playbook Market Overview 2025).
• High Property Values: While Denver property values mean significant investment, they also suggest strong potential for appreciation. DSCR loans allow you to leverage the property’s income potential to acquire assets in this promising market, even if prices seem daunting for conventional financing based solely on personal income.

2. Overcoming Traditional Financing Hurdles:

• Ideal for Self-Employed & Non-Traditional Income: Are you a business owner, freelancer, or gig worker? Documenting income for conventional loans can be a nightmare. DSCR loans eliminate this barrier by focusing on the property’s performance.
• Scaling Your Portfolio: Conventional lenders often limit the number of mortgages one person can hold (typically 4-10). DSCR lenders generally have no such limits. As long as each property meets the DSCR requirements, you can use these loans to acquire multiple properties and rapidly scale your Denver real estate portfolio.
• Focus on Investment Viability: Lenders offering DSCR loans understand real estate investing. They’re evaluating the deal based on its merits as an income-producing asset, aligning with your goals as an investor.

3. Flexibility for Modern Investors:

• LLC Vesting: Many savvy investors prefer to hold properties in a Limited Liability Company (LLC) for asset protection. DSCR loans frequently allow title to be vested in an LLC or corporation name, a flexibility not always easily available with conventional financing.
• Diverse Property Types: DSCR loans are typically available for non-owner-occupied residential properties (1-4 units), and sometimes extend to small multi-family (5+ units), mixed-use buildings, and short-term rentals (like Airbnb), although terms may vary.

For investors aiming to capitalize on opportunities in areas like the revitalizing Five Points, trendy Highlands, or transit-connected neighborhoods, the DSCR loan for investors in Denver provides a powerful and efficient financing pathway.

Diving Deeper: DSCR Loan – Understanding the DSCR Calculation

To successfully utilize DSCR loans, you need a solid grasp of how lenders calculate that crucial ratio. Let’s look closer at the components:

Calculating Net Operating Income (NOI):

Lenders need to determine a reliable income figure and realistic expenses.

• Gross Potential Rent: This is the starting point – what the property could earn if fully occupied at market rates. Lenders will typically use the lower of:
  • The actual rent stated in current lease agreements.
  • The market rent determined by an appraiser (often using a specific form like the Fannie Mae Form 1007 Single-Family Comparable Rent Schedule).
• Vacancy Allowance: No property stays occupied 100% of the time. Lenders subtract a percentage for potential vacancy. This rate varies but often sits around 5-10%, sometimes based on Denver market averages.
• Operating Expenses: These are the costs of running the property (excluding loan payments):
  • Property Taxes: Based on Denver’s specific mill levy and assessed value. You can find information via the Denver County Assessor’s Office.¹
  • Property Insurance: Hazard insurance estimate for the specific property.
  • Property Management Fees: Even if you self-manage, lenders often factor in a typical fee (e.g., 8-10% of gross rent).
  • HOA Dues: If applicable to the property (condo, townhome, certain subdivisions).
  • Maintenance & Repairs Allowance: An estimate for ongoing upkeep (often 5-10% of gross rent).
  • Utilities: Only if the landlord is responsible for paying them.

Calculating Total Debt Service (PITI/PITIA):

This is the proposed annual cost of the loan itself:

• Principal & Interest (P&I): Based on the loan amount, interest rate, and loan term (often 30 years, but interest-only options might be available).
• Taxes: 1/12th of the annual property taxes, usually escrowed.
• Insurance: 1/12th of the annual hazard insurance premium, usually escrowed.
• Association Dues (A): 1/12th of annual HOA dues, if applicable and included by the lender in the ratio.

Lender Interpretation:

A lender like GHC Funding, which provides various commercial real estate and business loans, will analyze these figures carefully. A DSCR of 1.25x means the property’s NOI is 25% higher than its debt payments, providing a healthy buffer against unexpected vacancies or repairs. A lower ratio means tighter margins and potentially higher risk.

Are You Eligible for a DSCR Loan in Denver?

While requirements vary between lenders, here are the typical eligibility criteria for a DSCR loan for investors in Denver:

• Property Type: Must be a non-owner-occupied investment property. This commonly includes:
  • Single-Family Residences (SFRs)
  • 2-4 Unit Properties (Duplex, Triplex, Fourplex)
  • Townhomes & Condos
  • Sometimes eligible: 5+ unit multifamily, mixed-use properties, short-term rentals (check lender specifics).
• DSCR Ratio: As discussed, typically need 1.0x minimum, with 1.20x or 1.25x+ preferred for best terms. Some lenders offer programs below 1.0x with compensating factors (e.g., higher down payment).
• Credit Score: Minimum scores often start around 620-660, but requirements vary. Higher credit scores (e.g., 720+) generally unlock better interest rates and terms.
• Down Payment / Loan-to-Value (LTV): Expect higher down payments than conventional owner-occupied loans. Minimums are often 20%, but 25-30% is common, especially for lower DSCR ratios or lower credit scores. Maximum LTV is typically 75-80%.
• Loan Amount: Lenders usually have minimum and maximum loan sizes (e.g., $100k minimum, up to $3M, $5M, or more).
• Cash Reserves: You’ll likely need to show sufficient liquid assets after closing to cover several months (e.g., 3-6 months) of PITI payments. This demonstrates financial stability.
• Appraisal: A property appraisal confirming the value and, critically, the market rent (using Form 1007 or similar) is required.
• Investor Experience: Some lenders prefer experienced investors, while others are open to first-time investors using a DSCR loan.
• Entity Vesting: Often permissible to close in the name of an LLC or corporation.

The key is that your personal income verification (pay stubs, tax returns) is generally not required for qualification, making the DSCR loan for investors in Denver highly accessible.

The DSCR Loan Application Process: Step-by-Step

Securing a DSCR loan follows a relatively standard process, but with a different underwriting focus:

1. Consultation & Pre-Qualification: Talk to a lender or broker experienced in DSCR loans, like the team at GHC Funding. Discuss your investment goals, property type, estimated numbers, and get an initial idea of potential terms and loan amounts.
2. Identify Your Denver Investment Property: Find a suitable property that pencils out – one where the expected rents realistically cover expenses and the anticipated debt service to meet the lender’s DSCR requirement.
3. Formal Loan Application: Submit the lender’s application form, providing details about yourself (for credit/background checks) and, most importantly, the subject property (address, purchase contract, estimated rents/expenses).
4. Property Appraisal: The lender orders an appraisal. The appraiser determines the property’s market value and provides an opinion of the market rent (e.g., via the Form 1007). This rent opinion is critical for the DSCR calculation.
5. Underwriting: This is where the lender dives deep into the property’s numbers. They verify the appraiser’s rent estimate, calculate the NOI and DSCR, review your credit report, verify your down payment funds and required reserves, check title reports, and confirm property insurance. Your personal income documents are typically not the focus here.
6. Approval and Closing: Once underwriting is complete and all conditions are met, the loan is approved. You’ll review the final loan documents, sign everything at a title company, and the loan funds are disbursed to purchase the property.

While streamlined compared to conventional loans regarding personal income, being prepared with property information and responding promptly to lender requests is key to a smooth process.

Weighing the Options: Pros and Cons of DSCR Loans

Like any financial tool, DSCR loans have advantages and disadvantages.

Pros:

• Faster Closing: Skipping extensive personal income verification significantly speeds up the process.
• Unlimited Properties: No conventional loan limits mean easier portfolio scaling.
• Ideal for Non-Traditional Income: Perfect for self-employed investors or those with complex income structures.
• Focus on Property Performance: Qualification hinges on the asset’s viability, not just personal metrics.
• LLC/Corporate Vesting: Allows for enhanced asset protection.
• Leverage Potential: Enables acquisition of more properties based on cash flow.

Cons:

• Higher Down Payments: Typically require 20-30% down, more than conventional owner-occupied loans.
• Potentially Higher Interest Rates/Fees: Rates and origination fees might be slightly higher than conventional loans due to perceived risk.
• Property Must Cash Flow: The property must meet the lender’s DSCR requirement. Underperforming properties won’t qualify.
• Appraisal is Key: The appraiser’s opinion on market rent heavily influences qualification. A lower-than-expected rent estimate can derail the loan.
• Prepayment Penalties: Some DSCR loans have prepayment penalties if you pay off the loan early (e.g., within the first 3-5 years). Be sure to understand these terms.
• Not for Owner-Occupied: Strictly for investment properties.

For many Denver investors, the pros – particularly the speed, scalability, and focus on the property – significantly outweigh the cons when compared to the hurdles of traditional financing.

Tips for Successfully Securing Your Denver DSCR Loan

Position yourself for success when applying for a DSCR loan for investors in Denver:

• Know Your Numbers Cold: Be conservative and realistic when estimating potential rents and operating expenses for Denver properties. Factor in vacancy, repairs, management, taxes, and insurance accurately. Use local data whenever possible.
• Maximize Your Credit Score: While not based on income, your credit score still heavily influences your interest rate and terms. Aim for the highest score possible.
• Save for a Larger Down Payment: Exceeding the minimum down payment strengthens your application, improves your LTV ratio, and may secure better terms. It also provides a larger equity cushion.
• Build Your Team: Work with professionals who understand the Denver investment market:
  • Investor-Focused Real Estate Agent: Someone who knows Denver neighborhoods, rental rates, and can identify potential deals.
  • Experienced Lender/Broker: Partner with a lender like GHC Funding that specializes in investment property loans and understands DSCR programs.
  • Knowledgeable Property Manager: If you plan to hire one, get insights on realistic rents and expenses in specific Denver areas.
• Understand Specific Lender Nuances: Don’t assume all DSCR programs are identical. Compare requirements for DSCR ratios, reserves, credit scores, and eligible property types.
• Prepare Your Documents: While you won’t need W-2s for personal income, have other documents ready: bank statements (to show down payment/reserves), entity documents (LLC operating agreement, if applicable), property details, purchase contract, and any existing leases.

Denver-Specific Considerations for Investors

Investing in Denver requires awareness of local factors:

• Landlord-Tenant Laws: Familiarize yourself with Colorado and Denver regulations regarding leases, security deposits, eviction procedures (e.g., the 10-day Demand for Compliance or Possession), and the Warranty of Habitability. Denver provides resources for both tenants and landlords. Check the City and County of Denver’s Tenant Rights² and Resources page.
• Property Taxes: Understand how property taxes are calculated (Assessed Value x Mill Levy) and when they are due. Visit the Denver County Assessor’s sit³e and the Property Tax information page. Be aware that property taxes have seen increases, impacting overall expenses.
• Rental Licensing: Check if Denver requires specific licenses for rental properties, as regulations can change. The city’s website is the best source for current requirements.
• Neighborhood Trends: Research specific neighborhoods. Areas like Baker, Five Points, Sloan’s Lake, and RiNo offer different investment profiles than more established areas like Washington Park or Capitol Hill. Consider factors like proximity to transit, amenities, schools, and revitalization efforts. (Source: Ark7 Neighborhood Guide 2025).
• Insurance Costs: Be aware that insurance costs, particularly concerning risks like wildfires in broader Colorado, can be rising and impact your operating expenses.

Partnering for Success: GHC Funding

Navigating the world of investment property financing can be complex. Partnering with a knowledgeable lender is crucial. While GHC Funding offers a range of Commercial Real Estate (CRE) and business loan solutions, it’s worth exploring if their offerings include DSCR programs tailored for investors.

Their expertise in business and property financing could provide valuable insights as you evaluate options for your next DSCR loan for investors in Denver.

Contact GHC Funding today to discuss your Denver investment property financing needs!

Conclusion: Is a DSCR Loan Right for Your Denver Investment Strategy?

The DSCR loan for investors in Denver offers a powerful alternative to traditional financing, enabling faster acquisitions, easier portfolio growth, and qualification based on the property’s potential rather than personal income hurdles. In Denver’s competitive and promising market, the speed and flexibility offered by DSCR loans can be a significant advantage.

By understanding how DSCR works, evaluating the pros and cons, knowing the eligibility requirements, and preparing thoroughly, you can leverage this tool effectively. Remember to perform diligent research on target properties and Denver market specifics, and partner with experienced professionals.

Ready to explore how a DSCR loan can help you achieve your real estate investment goals in the Mile High City? Reach out to financing experts who understand the investor landscape.

Explore your investment loan options with GHC Funding and take the next step in building your Denver real estate portfolio.

DSCR Loan for Investors in Denver: A 2025 Blueprint for Cash-Flow-Focused Growth

---

Introduction: Why Denver + DSCR Is a Powerful Combo

Denver’s Mile-High housing market keeps drawing investors for three big reasons: strong tech-driven job growth, steady in-migration from pricier coastal cities, and property values that—while no longer “cheap”—still leave room for healthy rent spreads. Pair that with a DSCR loan for investors in Denver, and you get a fast, documentation-light way to scale a rental portfolio without leaning on personal W-2s.

This guide shows how DSCR financing works, what the 2025 numbers look like in Denver, and how GHC Funding can help you close quickly with competitive terms.

---

1 | DSCR Loans 101—The Short Version

A Debt Service Coverage Ratio (DSCR) loan is a business-purpose mortgage underwritten mainly on the property’s own income:

[
\text{DSCR} \;=\; \frac{\text{Net Operating Income (NOI)}}{\text{Annual Debt Service}}
]

• NOI = Gross scheduled rent + other income – operating expenses (taxes, insurance, repairs, management).
• Annual debt service = 12 monthly mortgage payments (principal + interest; escrow if required).

Most lenders want DSCR ≥ 1.20. Hit 1.30–1.40 and you unlock better rates or higher leverage.

---

2 | Denver Market Snapshot: The Numbers That Matter in 2025

Metric (Apr 2025)	Data Point	Why It Matters
Average apartment rent	\$1,929 – \$1,935 (Average Rent in Denver, CO and Rent Price Trends – Zumper, Average Rent in Denver & Rent Prices by Neighborhood – RentCafe)	Healthy income stream to support DSCR.
Median home sale price	\$551 k (Zillow) ([Denver, CO Housing Market: 2025 Home Prices & Trends	Zillow](https://www.zillow.com/home-values/11093/denver-co/?utm_source=chatgpt.com)) & \$620 k (Redfin) (Denver Housing Market: House Prices & Trends – Redfin)
Vacancy rate	7 % (Q1 2025) (It’s a renter’s market in Denver)	Slightly tenant-friendly, but still below oversupply danger zones.
Job growth drivers	Tech, aerospace, cleantech; City’s workforce portal lists thousands of open positions (Opportunities for Jobseekers – City and County of Denver)	Diverse economy helps keep units filled.
Rental-fee legislation	State bill targets “junk fees” but no rent control so far (Colorado Democrats look to crack down on rental housing fees)	Predictable rent policies favor investors.

Key Takeaways

• Even with a short-term softening in rents, the \$1.9 k average provides solid gross income relative to 20 %–30 % down-payments.
• Denver remains “growth mode”: inventory (≈3,000 active listings) is balanced, not bloated.
• No statewide rent caps means landlords can still mark to market at renewal.

---

3 | Why a DSCR Loan Fits Denver’s Economics

1. Income Outpaces Debt – Rents near \$2 k support DSCR 1.20 on loan amounts up to ~\$300–350 k at today’s 7 %–7.5 % rates.
2. Docs-Light Approval – Tech workers, freelancers, or multi-property holders skip the personal DTI drag.
3. Scale Friendly – Close multiple properties in an LLC without tripping Fannie Mae 10-loan caps.
4. Cash-Out Potential – Rapid appreciation (8.6 % YoY) (Denver Housing Market: House Prices & Trends – Redfin) enables equity pulls for the next deal.

---

4 | Typical Denver DSCR Loan Terms (GHC Funding Programs)

Feature	2025 Denver Range*
Loan Amount	\$150 k – \$5 M +
Purchase LTV	Up to 80 % (≥1.30 DSCR)
Cash-Out Refi LTV	Up to 75 %
Rate Type	30-yr fixed / 40-yr IO-for-10
Credit Score	660 min (700 + for best)
Prepay Penalty	3-yr 3-2-1 (waived on portfolio)
Vesting	LLC, LP, or trust

*Illustrative; request a quote from GHC Funding for current pricing.

---

5 | Numbers in Action—Sample DSCR Calculation

Property: 2-bed condo in Sloan’s Lake
Purchase price: \$425,000
Down payment (25 %): \$106,250
Loan: \$318,750 @ 7.35 %, 30-yr amortized → \$2,188 /mo

Rent math
Market rent: \$2,450 /mo (RentCafe)
Vacancy/credit loss: 8 % → \$196
Gross effective rent: \$2,254
Operating expenses (28 %): \$631
NOI: \$1,623 /mo → \$19,476 /yr

DSCR: \$19,476 ÷ (\$2,188 × 12) = 0.74 → Fail

Fixes:

1. Switch to 40-yr, 10-yr interest-only at 7.50 % → payment \$1,993 → DSCR 0.81 (better, still low).
2. Add garage rent \$175 /mo + pet fee \$40 → NOI \$1,838 → DSCR 0.92.
3. Increase down payment to 35 % → new loan \$276,250; P&I \$1,897 → DSCR 0.97.
4. Combine options 2 + 3 → DSCR 1.18 (close to 1.20 pass).
5. Alternative: Buy a smaller 3-unit in West Colfax at \$650 k averaging \$1,650 per unit; NOI \$33 k; loan \$455 k IO payment \$2,844 → DSCR 1.29 (pass).

Lesson: Multi-unit deals often pencil faster in Denver’s high-price landscape.

---

6 | Neighborhood-by-Neighborhood DSCR Outlook

6.1 West Colfax & Villa Park

Lower prices, rail access, rapid redevelopment.

Metric	Data
Median home	\$515 k
2-BR rent	\$2,100
DSCR note	Duplexes frequently hit 1.30 + with 25 %–30 % down.

6.2 Five Points & RiNo

Hip, brewery scene; strong STR demand.

Metric	Data
Median home	\$640 k
1-BR rent	\$2,250
DSCR note	STR permits restricted; opt for 12-month corporate leases.

6.3 Aurora West (technically Arapahoe County)

Lower taxes, close to Anschutz Medical Campus.

Metric	Data
Median home	\$420 k
3-BR rent	\$2,400
DSCR note	Section 8 vouchers lift DSCR by lowering vacancy factor.

6.4 Capitol Hill

Dense rental corridor with historic stock.

Metric	Data
Median condo	\$380 k
Studio rent	\$1,650
DSCR note	HOA fees can kill NOI—budget carefully.

6.5 Edgewater & Wheat Ridge

Suburban feel, ADU-friendly.

Metric	Data
Median home	\$560 k
2-BR rent	\$2,000
DSCR note	Build an ADU for \$160 k; extra \$1,400 rent boosts DSCR 0.20–0.25.

---

7 | Regulatory Cheat Sheet

Topic	Current Status (2025)	Investor Impact
Rent Control	None at state or city level (watch statewide “protections” bills)	Full market-rent resets on turnover.
“Junk Fee” Bill	Caps late & admin fees (Colorado Democrats look to crack down on rental housing fees)	Minimal DSCR impact; budget fee income conservatively.
Short-Term Rentals	Must be owner-occupied primary residence in Denver proper	For pure STR, look to Aurora or unincorporated Adams.
Licensing	Annual rental-license renewal \$50 per unit (citywide ordinance)	Small cost; include in expense line.
Property Taxes	~0.55 % city, 0.6–0.7 % suburbs	Lower than national average, DSCR-friendly.

---

8 | Step-by-Step: Funding Your Deal with GHC Funding

1. Schedule a Strategy Call
   Chat with a Denver-savvy DSCR specialist at GHC Funding about target neighborhoods and exit plans.
2. Soft Pull + Term Sheet (24 hrs)
   A light credit check plus rent roll yields a quick-quote LTV, rate, and DSCR requirement.
3. Upload Docs
   – Lease agreements
   – Two months’ bank statements (reserve proof)
   – LLC docs & operating agreement
4. Appraisal + 1007 Rent Schedule (5–7 days)
   Independent Denver appraiser confirms value & market rents.
5. Underwriting + Condition Clear (7–10 days)
   Title work, insurance binders, and entity certificates reviewed.
6. Closing & Funding (21–28 days total)
   Sign at a local title company or mobile notary; funds wire directly to your LLC.

Need bridge or construction capital? GHC Funding also offers fix-and-flip lines, SBA 7(a) for mixed-use, and private bridge loans—all on one easy portal at ghcfunding.com.

---

9 | External Resources for Denver Investors

Resource	Why It Helps
Apartment Association of Metro Denver (AAMD)	Quarterly rent & vacancy reports (It’s a renter’s market in Denver)
Denver Housing Handbook (2024)	Landlord-tenant rules & fee schedules ([PDF] Renter’s Housing Handbook: – City and County of Denver)
Zillow & Redfin Market Dashboards	Up-to-date price & DOM trends ([Denver, CO Housing Market: 2025 Home Prices & Trends
Zumper Rent Tracker	Real-time rent comps (Average Rent in Denver, CO and Rent Price Trends – Zumper)
Denver Economic Development & Opportunity	Incentives, zoning maps, job-growth data (Opportunities for Jobseekers – City and County of Denver)

---

10 | Seven Pro Tips to Supercharge DSCR Performance

1. Add ADUs Where Zoning Allows – Convert garages in Edgewater/Wheat Ridge.
2. Target 3–4-Unit Buildings – Residential lending rates but multifamily income.
3. Offer Pet & Gear Storage – Outdoor-loving tenants pay \$25–\$50 extra.
4. Lock Utilities in Bulk – Flat-rate trash & internet lower vacancy adjustments.
5. Refi at DSCR ≥ 1.40 – Pull 75 % LTV cash-out to fund your next down payment.
6. Use Corporate Mid-Term Leases – 90- to 180-day stays avoid STR rules but fetch premiums.
7. Maintain 6–12 Months Reserves – Lenders shave 25–50 bps for strong liquidity.

---

11 | FAQs

Q: Will GHC Funding check my personal DTI?
A: Only a light credit pull—no DTI calculation for DSCR loans.

Q: Can I finance a property needing heavy rehab?
A: Yes. Start with a GHC bridge loan, then refi into DSCR after stabilization.

Q: Are self-managed properties allowed?
A: Absolutely; just budget a “management expense” line (lenders assume 5 %–8 %).

Q: How soon can I do a cash-out refinance?
A: Seasoning is typically 3–6 months on title, provided DSCR ≥ 1.20.

---

Conclusion: Time to Elevate Your Mile-High Portfolio

Denver’s 2025 rental landscape—high average rents, no cap on increases at turnover, and property-tax relief—creates fertile ground for DSCR-driven investing. By focusing on cash flow instead of personal income, a DSCR loan for investors in Denver lets you move fast, stay nimble, and separate your personal balance sheet from your business engine.

Partner with GHC Funding to tap industry-leading DSCR programs, bridge options, and SBA solutions—delivered by loan officers who know Denver block by block. Ready to see how your next deal pencils out? Call 833-572-4327 or start your application online today.

---