Loans for Colorado short-term rental investors

An STR loan is a mortgage for a short-term rental property — one rented for stays of less than 30 days. DSCR loans are the most common option, because they qualify the loan on the property's rental income rather than your personal income.

Traditional investment property loans usually use long-term rent estimates or documented rental history. Some DSCR lenders accept short-term rental projections or booking history instead, which can reflect a property's income in strong vacation markets. How the income is estimated, and how much of it counts, varies by lender.

For a DSCR loan, expect an appraisal with a rent analysis, a short-term rental income report or 12 months of booking statements, proof of down payment and reserves, a credit report, and entity documents if you're buying in an LLC. Credit requirements are often about 620–680 or higher depending on the lender and loan-to-value. Personal tax returns and W-2s usually aren't required.

Often, yes. Some DSCR lenders use a market projection based on comparable short-term rentals in the area, accounting for seasonality and local occupancy. Others require history or use a long-term rent estimate. We'll match the property to a lender whose approach fits.

Most DSCR lenders allow vesting in an LLC, and many let you form it right before closing. Lenders usually require a personal guarantee from the LLC's members. Talk to your attorney about liability protection.

Lenders favor markets with strong, documented short-term rental demand, such as Breckenridge, Vail, Steamboat Springs, Keystone, Telluride and Estes Park. Local licensing rules matter too: a property that can't be licensed for short-term rental won't qualify on short-term rental income.