If you’re buying a vacation rental or investment property in Summit County, you may be able to qualify based on the property’s rental income instead of your personal income. These are called DSCR loans (debt service coverage ratio), and they’re popular with investors buying in Breckenridge, Keystone, Copper Mountain, Frisco, Dillon and Silverthorne.
How a DSCR loan works
A DSCR lender compares the property’s expected rental income with its housing costs: principal, interest, taxes, insurance and HOA dues. If the rent covers those costs by the lender’s required margin, the property can qualify, and your tax returns and pay stubs usually aren’t the focus.
- Short-term rentals: some lenders use rental history or market data from vacation rental platforms to estimate income.
- Long-term rentals: lenders typically use a lease or an appraiser’s rent estimate.
- Ownership: many programs allow you to buy in an LLC.
Summit County details to plan for
- Town licensing rules. Breckenridge, Frisco, Dillon, Silverthorne and unincorporated Summit County each set their own short-term rental licensing rules, and they change. Confirm the license situation for a property before relying on rental income.
- Condo projects. Many rental-friendly condos are non-warrantable. See our non-warrantable condo loan guide.
- Seasonality. Ski-season and summer income can differ a lot, and lenders look at annual figures.
Common questions
Do I need to show personal income for a DSCR loan?
Usually not in the same way as a conventional loan. Lenders focus on the property’s income, along with your credit and reserves.
Can I use a DSCR loan for my first investment property?
Many lenders allow first-time investors. Guidelines vary, so we compare several programs.
Is a DSCR loan the only option for a rental?
No. Conventional investment-property loans may fit if you qualify with your own income. We’ll compare both.
Talk with Athena Damianos about your Summit County loan or learn more about Athena.
Luna Lending, Inc. NMLS #2032089 | Athena Damianos NMLS #2092623 | 610 Main St, Suite 11, Office B, Frisco, CO 80443. Equal Housing Opportunity. This is not a commitment to lend. All loans are subject to credit approval, property review and program guidelines, which can change without notice.