Rental property financing built on rental income.
A Colorado DSCR loan is a rental property mortgage sized on the rent, with no personal income documents. HUD puts the 2 bedroom Fair Market Rent for the Aurora area (Denver metro) at $2,169 a month (HUD User). Pillar Mortgage Group (NMLS 2700076) arranges DSCR loans in Colorado up to $5 million.
Facts checked November 1, 2026. Not a commitment to lend.
DSCR loans by state
We lend DSCR in 35 states. Pick yours.
Primary sources only. Use these to sanity check any Colorado rental before you write an offer.
| Colorado fact | Value | Source |
|---|---|---|
| Security instrument | Deeds of trust foreclosed nonjudicially through the county public trustee; holder files notice of election and demand with the public trustee | C.R.S. § 38-38-101 |
| Foreclosure | Deeds of trust foreclosed nonjudicially through the county public trustee; holder files notice of election and demand with the public trustee | C.R.S. § 38-38-101 |
| Transfer and recording taxes | State documentary fee of 1 cent per $100 of consideration over $500; none if $500 or less | C.R.S. § 39-13-102 |
| Security deposit | 2 monthly rent payments (C.R.S. § 38-12-102.5) | leg.colorado.gov |
| Notice for unpaid rent | 10 days' written demand; 5 days for an exempt agreement (single family home, landlord owns 5 or fewer single family rentals and says so in the lease) | C.R.S. § 13-40-104(1)(d), (5)(b) |
| Rent control | Preempted | C.R.S. § 38-12-301 |
| LLC formation fee | $50 Articles of Organization (online only) | sos.state.co.us |
| Median listing price | $564,000 in September 2026 ($587,000 in September 2025) | Realtor.com via FRED |
| HUD 2 bedroom Fair Market Rent | $2,169, The Aurora area (Denver metro) | HUD User |
Full walk through: how DSCR is calculated.
Nine rules that open more Colorado deals.
Loan amount
Up to $5M
Credit
660 and up
Down
20 to 25%
Vesting
LLC ok
Guidelines summarized; subject to program terms, property and borrower eligibility. Not a commitment to lend. Compare with typical DSCR programs.
These public benchmarks show where Colorado rents and prices sit right now.
Median listing price
$564,000
September 2026, down 3.9% from $587,000 in September 2025
Quick math (computed from the figures above): Using the Colorado median listing price, $564,000, a 25% down payment is $141,000 and the loan is $423,000. A year of rent at the Fair Market Rent for the Aurora area (Denver metro) ($2,169) is $26,028, or 4.6% of that price. A year of rent at the Fair Market Rent for the Colorado Springs metro ($1,621) is $19,452, or 3.4% of that price.
Fair Market Rent is a HUD benchmark, not an appraisal.
The rent field starts at the HUD 2 bedroom Fair Market Rent for the Aurora area (Denver metro). HUD also lists the Aurora area (Denver metro) at $2,169 and the Colorado Springs metro at $1,621. Swap in your lease or appraisal rent, then add your quoted rate. For a price reference, the median Colorado listing was $564,000 in September 2026.
See how a rental's income stacks up against its full monthly payment. Your numbers stay in your browser.
Enter rent, price and your quoted rate to see your DSCR.
Loan amount (L) = Price × (100 minus Down %) ÷ 100
P&I (30 year fixed) = L × r × (1 + r)^360 ÷ ((1 + r)^360 minus 1), where r = annual rate ÷ 100 ÷ 12
P&I (40 year interest only) = L × r
PITIA = P&I + Tax ÷ 12 + Insurance ÷ 12 + HOA
DSCR = Monthly rent ÷ PITIA
Rent needed for a target DSCR = Target × PITIA
Estimates only. Not a loan offer. Rates and terms vary by lender, property and borrower. Company NMLS #2700076. Example values are illustrations, not a quote.
Hypothetical PITIA of $1,775 (P&I $1,400, taxes $250, insurance $125), real Colorado rents. Not a quote or a rate.
1.22DSCR
$2,169 / $1,775 = 1.22: covers the full payment.
0.91DSCR
$1,621 / $1,775 = 0.91: fits programs down to 0.50.
A two minute form gets the property in front of our team. You get a straight answer on the ratio and the structure.
Investors from any state can buy in Colorado.
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The largest Colorado rental markets, and what each city requires of short term rental hosts.
City rules change. Confirm with the city and your HOA before you buy, and ask us how your lender counts short term rental income.
Know the Colorado landlord rules before you close. They shape your lease, your deposit and how fast you can act on unpaid rent.
| Topic | The rule | Citation |
|---|---|---|
| Security deposit cap | 2 monthly rent payments (C.R.S. § 38-12-102.5) | leg.colorado.gov |
| Deposit return deadline | One month after lease termination or surrender, or a longer period set in the lease up to 60 days (C.R.S. § 38-12-103(1)). HB25-1249 (eff. Jan 1 2026) adds: itemized documentation within 14 days of a tenant's written request, walk through inspections on request, a presumption of bad faith when retention is 125% or more of actual damages, and a 60 day deadline to transfer or return deposits when the landlord's interest ends. | leg.colorado.gov |
| Nonpayment notice | 10 days' written demand. 5 days for an exempt agreement (single family home, landlord owns 5 or fewer single family rentals and says so in the lease). | C.R.S. § 13-40-104(1)(d), (5)(b) |
| Month to month notice | 21 days for a tenancy of one month or longer but under six months. HB24-1098 (effective Apr 19 2024) now requires cause or a listed no fault ground to evict most residential tenants. | C.R.S. § 13-40-107(1)(c) |
| Rent control | Preempted: no county or municipality may enact an ordinance controlling rent on private residential property (voluntary affordability agreements allowed). | C.R.S. § 38-12-301 |
Not legal advice.
Use the actual tax bill, not the seller's homestead bill, when you run a Colorado rental.
The closing mechanics and transfer costs that land on a Colorado settlement statement.
What it costs to form and keep an LLC in good standing with the Colorado Secretary of State.
The Colorado rules that touch your lease, your closing and your entity.
Documents: contract, lease or rent schedule, bank statements, LLC papers, insurance quote. No tax returns. Details.
Colorado is highlighted. We also lend DSCR in Wyoming, Kansas, Oklahoma, New Mexico and Arizona next door, and in 30 more states. Tap a gold state to open its guide.
Straight answers for investors buying or refinancing rentals in Colorado.
PMG guidelines summarized; subject to program terms, property and borrower eligibility. Not a commitment to lend.
Book a free callInvesting across state lines? We lend DSCR in these neighbors of Colorado too.
Primary sources, each with the date checked. PMG program facts come from Pillar Mortgage Group.
Send the Colorado property and rent. We run the ratio and lay out terms before you offer.
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We will reach out shortly to run your numbers.
Pillar Mortgage Group, LLC is an Equal Housing Lender, doing business in accordance with the Fair Housing Act and Equal Credit Opportunity Act. Not a commitment to lend.
Company NMLS# 2700076 | Arizona License MB-2009671 | View NMLS Consumer Access