DSCR & Investment Property Loans in Durango, Colorado (2026)

Durango's combination of strong rental demand, Fort Lewis College tenant base, and year-round tourism makes it one of Southwest Colorado's most active investor markets. If you're buying a rental in Durango in 2026, here's how to finance it.

DSCR Loans: The Standard Investor Tool

A DSCR (Debt Service Coverage Ratio) loan qualifies based on the property's rental income, not your personal income or tax returns. That makes it ideal for self-employed buyers, investors who already own multiple properties, or anyone who'd rather not document their full personal financial picture.

• 20–25% down typical; better pricing at 25%+
• 660+ credit (720+ for best pricing)
• DSCR of 1.0 or higher unlocks standard pricing; 1.20+ is ideal
• 30-year fixed, interest-only, and ARM options available

See our Colorado DSCR rate guide and DSCR down payment guide for the underwriting details.

Long-Term Rental Math in Durango

The strongest long-term rental DSCR deals in Durango usually come from properties near Fort Lewis College, downtown, or established neighborhoods with steady workforce demand. Rents in the city of Durango run roughly $1,800–$3,500/month for single-family depending on size and location, with smaller condos and townhomes filling the lower end and 3–4 bedroom homes near the upper end.

A clean DSCR of 1.10–1.25 is achievable on many properties — the trick is matching purchase price to rent realistically, not assuming peak-of-market rents.

Short-Term Rental Underwriting

STR DSCR loans are available in Durango, but two things matter:

• STR permit status of the specific address. Durango caps non-owner-occupied STR permits and restricts new permits in many zones. Always verify before going under contract.
• Income documentation. Most STR-DSCR lenders accept either 12 months of operating history (Airbnb statements) or an AirDNA projection — but the underwriter typically takes the lower of market rent and STR projection.

Other Investor Loan Options

Conventional Investment

15–25% down on 1–4 units; qualifies on your personal income and uses 75% of rents toward DTI. Better rates than DSCR but more documentation.

Fix & Flip / Bridge Loans

Short-term financing for rehab projects, structured around purchase + rehab budget and after-repair value. See our fix & flip guide.

BRRRR Strategy

Buy with a fix & flip loan, rehab, rent, then refinance into a long-term DSCR loan at the new appraised value. See DSCR vs. fix & flip.

Where Durango Investors Are Buying

Near Fort Lewis College: steady long-term rental demand from students and faculty.
Three Springs / south end: newer construction, lower maintenance, strong workforce rental market.
Downtown condos & townhomes: historically strong STR performance where permits exist.
Bayfield & Ignacio: more affordable entry price, USDA-eligible for owner-occupants, viable for long-term rentals.

Get an Investor Quote

At Tayton Capital we close DSCR and investor loans across Colorado, with strong wholesale lender access for non-QM and DSCR programs. See our Durango mortgage page or contact us for a deal-specific quote.

📧 tj@taytoncapitalllc.com
📞 970-708-9624