In this guide, we highlight the top DSCR lenders in Colorado, looking at their closing speeds, reliability in closing, interest rates, and online reviews.
In this guide, we highlight the top DSCR lenders in Colorado, looking at their closing speeds, reliability in closing, interest rates, and online reviews.
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*Constitution only operates in select states
Debt-service coverage ratio (DSCR) loans are financing solutions underwritten solely on a property's capacity to generate sufficient rental income to service its debt obligations..
If a real estate investor earns $1,200 in rental income and has $1,000 in expenses, the property would have a DSCR of 1.2.
Lenders usually ask for a DSCR above 1.0, with some lenders, such as Constitution Lending, able to extend financing with a DSCR as low as 0.75.
Since the underwriting process centers on the property's financials rather than the borrower's, applicants are not required to provide tax returns, personal income statements, or the extensive documentation banks usually demand.
However, the DSCR lender you choose plays a crucial role in determining your closing speed, reliability, and loan terms. Most DSCR lenders come with the following limitations:
In this article, we cover how you can identify and differentiate fast, high-quality DSCR lenders from slow, unreliable ones. We then cover how we at Constitution Lending thoughtfully designed our lending process to help Colorado borrowers compete with the speed of cash buyers.
Use our DSCR loan pricer to get a quote within seconds.
Constitution Lending is a hard money lender that originated over $300 million in loans. We founded Constitution Lending after being real estate investors ourselves and experiencing firsthand the frustrations with slow and unreliable lenders.
We encountered lenders who would take 40+ days to close after promising they could close within 7 to 14 days. They would also sometimes unexpectedly reject our application the day before or on the day of closing, forcing us to scramble for alternative financing or lose the property entirely.
Constitution Lending is designed to solve these issues. We use our automated pricer and documents portal to achieve fast closing times, helping Colorado investors compete in competitive markets, from Denver to Colorado Springs to Fort Collins, and more.
A lender's ability to quickly get back to you a quote and term sheet is a reliable sign of how efficient their application and closing processes are and thus, how fast you can close. If a lender takes long to issue quotes and term sheets, it’s likely they’ll be slow at underwriting and closing too.
With most lenders, they require borrowers to schedule an in-person appointment or wait multiple business days for a loan officer to call before getting a quote, term sheet, and approval letter.
We expedite the application process with our automated pricer. Simply enter basic information about the deal (e.g., purchase price, loan amount, monthly rent), and our pricer returns three quotes within seconds.
You can apply for a DSCR mortgage loan by clicking on the quote you prefer and entering your email address and full name. You'll immediately be given access to our online documents portal, which details all the documents you need to submit and allows you to upload them directly (e.g., bank statements, entity documents, proof of insurance).
This entire process takes less than 5 minutes.
Once you've submitted your documents, we review them and close with the title company in 7 to 14 days. In urgent situations where all documentation is ready and borrowers need funding faster, we've even closed in 4 days.
Read more: 5 Best DSCR Lenders (Comparison Guide)
Most DSCR lenders are in fact brokers who don't have money to lend and consequently, don't really have a say in whether your application is approved or not. They are intermediaries who have to wait for the actual lender to complete underwriting and give them the go-ahead.
This frequently leads to miscommunications where brokers may say you qualify, but the lender comes back with a rejection. This creates a "moving goalpost" problem where initial approval doesn't guarantee final approval.
With Constitution Lending, we are a direct lender using our own money to fund your loan. We know our DSCR requirements inside and out, and can give you an accurate answer on whether you qualify as soon as you submit documents. We don't have to wait for a third-party lender to finish underwriting.
This eliminates the frustrating last-minute rejections that are so common with brokers and gives Colorado investors the certainty they need to close.
Read more: DSCR Loan Pros and Cons: A Detailed Guide for Investors
Constitution Lending offers Colorado investors several advantages:
Note: In addition to DSCR loans, we also offer fix-and-flip financing options that can be used to renovate distressed properties—especially those that may not qualify for DSCR financing, which requires the property to be rent-ready. Once the renovation is complete, you can convert the short-term fix-and-flip loan into a long-term DSCR loan and begin collecting rental income from tenants. We can accommodate almost any investment strategy.
See what interest rates and terms you qualify for by using our automated pricer to generate an instant quote.
Certain Lending offers long-term rental loans for Colorado investors with loan amounts ranging from $100K to $3MM. Their eligibility requirements include a minimum DSCR of 1.0, credit scores of 700 or higher, and down payments starting at 25%. Their typical closing time ranges from 21 to 30 days, which may be slower than needed in Colorado’s real estate market.
While Certain Lending provides reasonable loan terms, their higher credit score requirements and longer closing times can limit opportunities for some Colorado investors, particularly in fast-moving markets like Denver where rental properties often receive multiple offers within days of listing.
That said, it's worth noting that Certain Lending requires borrowers to fill out a form on their homepage and wait for a loan officer to follow up with additional questions. It’s not clear how long it takes the loan officer to call and if there are additional delays before underwriting can start.
With Constitution Lending, you can download a term sheet and quote directly after filling out our pricer and begin submitting your paperwork.
Lima One Capital provides short-term Airbnb and long-term DSCR loans in Colorado with loan amounts from $75K to $3MM, making it a good option for borrowers who need small loan amounts to fund their real estate investment. Lima One also offers LTV ratios up to 80%, require a minimum credit score of 680, and typically close loans within 21 to 45 days.
However, Lima One operates as a correspondent lender, meaning they often sell loans to third-party investors after origination. This can create uncertainty about loan approval until late in the loan process, as the final investor may have different criteria than initially presented.
Also, like with Certain Lending, a limitation with partnering with Lima Capital is that it’s unclear how long they can actually close. They don’t have automated tools like a pricer or portal that streamlines the application and approval process; they still rely on calling you and asking questions over the phone.
Rain City Capital offers DSCR loans underwritten on a property’s income potential for Colorado investors with competitive interest rates and terms up to 30 years. They focus on single-family and small multifamily properties with loan amounts typically ranging from $150,000 to $2 million.
Their underwriting process can take 30 to 45 days, and they require extensive property documentation and detailed rental market analysis. While thorough, this extended timeline may not suit Colorado investors who need to close quickly on time-sensitive opportunities.
That said, Rain City asks that borrowers sign up for an account and then fill out a contact form to apply. There’s no automated tools to speed up the application and closing process, like the ones that Constitution Lending offers.
Capital Fund 1 is a non-QM lender that provides a variety of loan programs including DSCR loans and refinancing for Colorado real estate investors. You can qualify for loan amounts from $100K to $5MM and they offer both fixed and adjustable-rate options with terms up to 30 years.
Capital Fund 1 also offers short-term rental loan products that you can use to purchase Airbnb properties and vacation rentals. Mortgage payments are based on STR data and the property’s cash flow.
However, Capital Fund 1 operates primarily as a broker, connecting borrowers to various lending sources. This means they cannot provide definitive loan approval early in the process, and borrowers may face unexpected changes in terms or requirements as the loan moves through different underwriters.
Another factor to consider before partnering with Capital Fund 1 is their closing speed, since they don’t offer any tools to automate approval.
Our direct lending model, automated pricer, and streamlined process get Colorado investors financed in 7 to 14 days with certainty of closing. Our flexible underwriting criteria — including DSCR ratios as low as 0.75 and credit scores starting at 660 — make financing accessible to a broader range of investors.
Get an instant DSCR loan quote for your Colorado investment property using our automated pricer. Simply enter your property details and receive three customized loan options within seconds, then apply directly online to start the fast-track approval process.
| Qualification | Requirement |
|---|---|
| Minimum and maximum loan amount | $150,000 to $3,000,000 |
| Type of property | Non-owner occupied single-family, multi-family, and 5-8 unit properties |