DSCR LOAN COLORADO

Colorado DSCR Loan Benefits

  • UP To 85% LTV on a Purchase and Refinance
  • Up To 80% for Cash Out Refinance
  • Purchase – Refinance – Cash-Out
  • No Seasoning Required (BRRRR Friendly!)
  • No Income or Employment Required
  • Foreign Nationals Eligible
  • START BUILDING YOUR INVESTMENT PORTFOLIO

DSCR LOAN APPLICATION  QUICK APPLY 

Colorado DSCR Loan – Embark on a successful real estate investment journey with CambridgeHomeLoan.com, the leading provider of Debt Service Coverage Ratio (DSCR) Loans in Colorado. As your trusted financial partner, we specialize in offering tailored DSCR Loans designed for real estate investors. With competitive terms and a commitment to excellence, we empower investors to seize opportunities and achieve financial success.

COLORADO DSCR
PURCHASE

Up to 85% LTV (Loan to Value)
No Income Investment Loan
Just use rental income to qualify!
No DTI Programs available
Interest Only terms available
30 and 40 year amortization options

COLORADO DSCR
CASH OUT REFINANCE

Up to 80% LTV
Cash out re-finance your investment
property to build you portfolio today!
Low Rates, High Leverage!
Minimal Documentation
Fast Close

COLORADO DSCR
REFINANCE {RATE AND TERM)

Up to 85% LTV
Refinance and reap the benefits of passive income from your investment property.
No income or employment required!
Up to 40 year amortization
Interest Only Options!

The premier rental property investment loan option for long term cash flowing properties, up to 85% LTV

For Real Estate Investors in Colorado who have an existing short-term loan looking for an opportunity to streamline to a 30-year or 40-year term. Debt Service Coverage Ratio (DSCR) loan for non-owner-occupied rental investment properties. Suitable for Purchase, Refinance and Cash-Out Loans.

Benefits of A Colorado DSCR Loan:

  • Up To 85% LTV on a Purchase or Refinance
  • No evidence of personal income required
  • Maximize cash flow with 30 and 40 year interest only programs
  • Cash out to continue buying
  • Fast Close!
  • No verification of employment
dscr loan colorado

Debt Service Coverage Ratio (DSCR) Loan
Purchase, Refinance or Cash Out Refinance!

  • No personal Income Required
  • No Employment Required
  • Qualify Based On Cash Flow
  • 30 or 40 year Loans
  • DSCR Loan Colorado purchases only require 15% Down minimum!
  • The Minimum Loan Amount $100,000
  • Credit score of 620 or higher

CASH-OUT REFINANCE

Turn Rental Property Equity Into Cash

Multiply Your Assets with DSCR Loans

BRRRR (Buy, Rehab, Rent, Refi., Repeat) Friendly

DSCR Loan Colorado: Calculating Your Ratio

How To Calculate the Debt Service Coverage Ratio:

The DSCR loan Colorado is designed for Real Estate Investors who are looking to qualify for a mortgage loan based on the cash flow generated by an investment property in Colorado.

A DSCR Loan in Colorado does not require tax returns, proof of income or employment information to qualify. Build your rental portfolio with rental property DSCR Loan from CambridgeHomeLoan.com

Additional Loan Products for Colorado
Fix and Flip Loans, Hard Money Loans and Ground Up Construction. Send us your scenario today!

construction loan

COLORADO CONSTRUCTION

*Ground Up Construction
Up To 80% Of Land
* 100% of Construction
* Builders and Developers!

fix and flip loan programs

COLORADO
FIX TO FLIP

*Up to 90% of the Purchase
*100% of the Rehab.
* Closing as fast as 5 days!
* Fix to Flip or Fix to Refi .
* 30 or 40year DSCR loan

dscr loan program

COLORADO
DSCR LOAN

*Up To 85% LTV
* Cash Out Refinance
* 15-30 Day Close!
* No Income Required
* No Employment Required

rental loan

COLORADO
CASH OUT REFI

* Cash-out & Refinance
*30 or 40 year loan..
* Closing 30 days!
* Up To 80% LTV

Example of the DSCR Calculation

DSCR= NOI (Net operating income) -Expense

divided by Mortgage Payment

Example: Income of $4000.00  Expenses $1,000.00, Mortgage Payment $2,000.00
Income – Expenses = $3,000.00 divided by $2,000 = $1.5%  DSCR ratio =1.5%
Anything over 1 means you are profitable. Under 1 means that there is not enough cash to cover your expenses.

COLORADO DSCR LOAN FAQ’S (FREQUENTLY ASKED QUESTIONS)

Are Colorado DSCR Loans Expensive?

DSCR loans typically have down payment of 15-25% down. 

Is it hard to get a DSCR Loan in Colorado?

Not at all! 
DSCR loans are simpler to obtain, and the application procedure is more efficient and simplified. The criteria for DSCR loans are generally less stringent. DSCR loans are great for investing in Colorado’s growing market!

What types of properties are eligible for DSCR loans in Colorado?

DSCR loan allows you to acquire a wide range of properties for various purposes, including short-term and long-term rental. You can buy a single family investment property, 1-4 Family or 5+ Multifamily.

How long is a DSCR loan?

DSCR loans are typically given for terms of 30 years with options for as high as 40 years or as low as 20.  The length of the loan will generally be determined by the lender based on factors such as the type of property being purchased and the projected cash flow of the business.

How can I improve my DSCR?

In order to improve your DSCR, you need to increase your net operating income or reduce your debt service payments. The easiest way to improve your DSCR is to invest more money, but you can also buy insurance, find ways to reduce annual property taxes, and charge more rent. Allowing pets or including extra amenities like a washer and dryer are easy ways to increase your rent. 

What types of properties are eligible for a DSCR Loan Clorado?

Eligible properties for DSCR loans in Colorado must meet specific criteria. These properties include single rental properties that can have long or short-term leases. They are typically limited to single-family homes, 1-4 unit properties, condos, or townhomes, mixed use, multifamily and others.  Call to discuss your loan scenario.

What is a NO DSCR loan?

A No DSCR loan is a type of commercial loan that does not require the borrower to have a  DSCR of 1.0 or higher. This indicates that the borrower does not need to earn enough income to cover their monthly debt payments. No DSCR loans are typically used by businesses that are expanding or taking on new projects, as they may not have the income necessary to meet all their debt obligations.

What are the pros and cons of a DSCR loan?

Pros:
• Easier to qualify than other investment property loans
• No personal income verification is required
• Flexible underwriting guidelines
• It can be used to finance properties with little or no rental history


Cons:
• Higher interest rates and fees than conventional mortgages
• Minimum 15% down payment required
• Must provide proof of income from rental property to qualify
• Closing costs can be higher than conventional mortgages for DSCR loans.

Overall, DSCR loans can make it easier to purchase investment properties and provide flexible financing options.

What does a DSCR ratio of 1.25% mean?

A DSCR of 1.25 means that there is sufficient cash flow to cover the loan payments and other debt obligations. Specifically, a DSCR of 1.25 indicates that for every $1.25 in annual loan payments, there is $1.00 of net income available to pay those debts after accounting for all operating expenses (including taxes and depreciation), leaving $0.25 in profit. 

A DSCR of 1.25 is considered a good ratio by lenders, as it shows that the borrower has sufficient income to cover their loan payments. It also indicates that the borrower’s debt obligations are manageable. In general, lenders prefer to see a DSCR of at least 1.15 for conventional loans and 1.25 for investment properties.

Example:
Rental income: $150000, Expenses: $25000, Mortgage Payment: $100000
DSCR= $150K – $25K/ $100K
= $125K/$100K = 1.25

A higher DSCR is even better, as it shows the lender that the borrower has more than enough income to cover their loan payments.

Do you need good credit for a DSCR loan?

Although you do not need higher-than-average credit,  your credit score is still important, it carries less weight when it comes to qualifying for a DSCR loan. This is because lenders will focus more on the rental income and expenses associated with the property in order to determine if the borrower can make their loan payments.

What is a DSCR for commercial loans?

The debt service coverage ratio (DSCR) for commercial loans is a measure of an entity’s ability to meet its debt obligations. It is calculated by dividing the net operating income (NOI) by the total loan payments per year. The higher the DSCR, the more cash flow there is available to make payments on the loan, and it is thus preferred by lenders.

What is the maximum DTI (Debt to income) for a DSCR loan?

Unlike many home loans, DSCR investment loans do not consider Debt-to-Income. 

Instead, DSCR loans focus on the DSCR ratio or the cash-flow of the property.

How many DSCR loans can you have in Colorado at one time?

Generally, there is no limit on how many DSCR loans you can have. However, lenders will usually impose a maximum loan-to-value (LTV) ratio and/or total debt service coverage ratio (TDSCR) when determining the amount of money they are willing to lend out. It’s important for borrowers to work with lenders to ensure that their rental income and expenses align so that they can meet the loan terms.

Eligible Property Types For A Colorado DSCR Loans?

Property Types include Single Family 1-4 unit, Multifamily, Condo’s, Townhomes, Mixed Use properties and commercial real estate assets. Contact info@cambridgehomeloan.com with your current scenario.

Are foreign nationals eligible for DSCR loans?

Yes Absolutely!

CambridgeHomeLoan.com has many programs for foreign national real estate investors including Colorado DSCR Loans, Fix and Flip loans, Single Family, Owner Occupied and Commercial Real estate Loans.

What is the Loan To Value Ratio provided by CambridgeHomeLoan.com for DSCR Loans in Colorado?

Even though a 1:1 ratio is cash flow neutral, CambridgeHomeLoan.com allows for down to .85% allowing the borrower/investor time to lease up or make improvements to increase rents.  Properties with a 1 to 1 ratio or higher with more profit allow for better rates and terms.

 

DSCR Loan Colorado, Hard Money Loan Colorado, Fix and Flip Loan Colorado,  Now Funding Nationwide!
Purchases up to 85% LTV.  Refinance, Cash Out Refinance up to 80% LTV.

Key Features of CambridgeHomeLoan.com DSCR Loans Colorado:

Up to 85% Loan-to-Value (LTV) for Purchases:

CambridgeHomeLoan.com provides real estate investors in Colorado with the flexibility of securing DSCR Loans in Colorado with an impressive Up to 85% Loan-to-Value ratio for property purchases. This enables investors to maximize their potential for acquiring valuable assets.

80% LTV for Refinance:

For investors looking to optimize their existing real estate portfolio, our DSCR Loans in Colorado offer up to 85% Loan-to-Value for refinancing purposes. This feature ensures that real estate investors in Colorado can leverage the equity in their properties for strategic financial growth.

Cash-Out Refinancing Features:

CambridgeHomeLoan.com understands the importance of liquidity in real estate investments. With our DSCR Loans in Colorado, investors can benefit from Cash-Out Refinancing features, allowing them to access capital tied up in their properties for additional investment opportunities or other financial needs.

Tailored Solutions for Real Estate Investors:

Recognizing the unique needs of each investor, CambridgeHomeLoan.com provides personalized DSCR Loan in Colorado solutions. Whether you are a seasoned investor or entering the real estate market for the first time, our team works closely with you to tailor financing options that align with your goals.

Transparent and Efficient Process:

At CambridgeHomeLoan.com, transparency and efficiency are our priorities. Our streamlined application and approval process ensures a hassle-free experience, allowing investors to focus on their real estate ventures rather than navigating complex financial procedures.

 

Why Choose CambridgeHomeLoan.com as Your Preferred DSCR Loan Lender in Colorado?

 

Proven Expertise: With 25+ years of experience in the industry, CambridgeHomeLoan has a proven track record of supporting real estate investors in Colorado with their financial needs.

Competitive Terms: We offer competitive terms on DSCR Loans, ensuring that investors benefit from favorable financing arrangements that contribute to the success of their projects.

Responsive Customer Support: Our dedicated team at CambridgeHomeLoan.com is committed to providing responsive and attentive customer support. We are here to address your questions, guide you through the process, and ensure a seamless lending experience.

Seize the opportunities in Colorado’s real estate market with confidence. Choose CambridgeHomeLoan.com as your preferred DSCR Loan lender, and let us be the catalyst for your success in the dynamic and lucrative world of real estate investment.

 Step By Step Guide To Obtaining a DSCR Loan Colorado

Step 1: Apply

Step 2: Submit Proof of Your Properties Income

As your creditworthiness is verified by the income you will generate from the property you are buying; you need to provide proof that your property can cover the mortgage payments. So, provide the needed documents to showcase your property’s income against the loan amount. Typically your lease, taxes, insurance, LLC documents and a copy of your drivers license.

Step 3: DSCR Calculation and 1007 Rent Schedule

Once you submit the loan application, your lender will calculate the DSCR ratio, which must be greater than 1, to obtain the best rates and terms. During the appraisal the lender will require a 1007 Rent Schedule to know the property’s fair market rent and ensure the property can sustain the mortgage with market rents. Once the appraisal comes back and is evaluated, its time to close.

Step 4: Closing! 

Congratulations you are on your way to building your real estate investment portfolio. DSCR Lender Colorado providing the best industry rates and term.

 

EXPERT REAL ESTATE INFORMATION BLOG

ultimate guide to dscr loan

Ultimate Guide To DSCR Loans

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