Why DSCR makes sense in this market
Mesa Verde National Park draws hundreds of thousands of visitors a year. Cortez and Mancos are the closest towns to the park entrance, and short-term rental supply is thin relative to demand — especially for properties that can sleep larger groups, offer outdoor space, or serve as a base for multi-day canyon country exploration.
Most investors who want to buy here can't get a conventional investment loan. They're self-employed with complicated tax returns. They already own multiple rental properties. They want to hold the property in an LLC. Or they simply don't want to hand over two years of personal financials.
DSCR solves all of those problems.
How DSCR works
DSCR stands for Debt Service Coverage Ratio. The calculation:
Monthly rental income ÷ Monthly PITI (principal, interest, taxes, insurance, HOA) = DSCR ratio
A ratio of 1.0 means break-even. A ratio of 1.25 means 25% more income than the debt payment. Most lenders require 1.0–1.25 — we have lenders who approve at 1.0 and some who go below for strong borrowers.
For properties not yet rented, we establish income using market rent comparables or — for short-term rentals — AirDNA projected revenue data. This is how you buy a Mesa Verde cabin before it's listed on Airbnb and still qualify.
What DSCR doesn't require
No tax returns. No W-2s. No employment verification. No personal income calculation. This works well for:
- Self-employed buyers with heavy tax deductions
- Investors already carrying multiple conventional loans
- Buyers who want LLC vesting (not allowed with conventional)
- Front Range or out-of-state buyers who want passive Mesa Verde income
DSCR terms in the Cortez/Mancos market
- Down payment: 20–25% typical.
- Credit score: Minimum 660–680 for most lenders; best pricing above 720.
- Rate: Typically 0.5–1.0% above conventional.
- Loan type: 30-year fixed, ARM, or interest-only options.
- STR vs. long-term: Different lender pools — we place your file with the right shelf.
- LLC vesting: Most DSCR lenders allow LLC title.
Properties that work well here
Mancos cabins within 10–15 minutes of Mesa Verde's entrance — see our Mancos broker page.
Cortez vacation rentals for visitors wanting a city base with easy access to Mesa Verde, Canyon of the Ancients, and Hovenweep.
Dolores properties near McPhee Reservoir — fishing and reservoir recreation drive a second demand stream.
What we need to get started
- Property address (or target area and budget)
- Estimated purchase price and down payment
- Current DSCR portfolio
- Credit score estimate
- Personal name or LLC vesting
Frequently Asked Questions
What DSCR ratio is required for a Mesa Verde STR?
Most lenders require 1.0–1.25. We have lenders that will approve at 1.0 for strong credit and larger down payments.
Can I use Airbnb income projections to qualify?
Yes — STR-friendly DSCR lenders accept AirDNA revenue projections for comparable properties.
Can I hold a DSCR property in an LLC?
Yes, most DSCR lenders allow LLC title vesting.
Is there a DSCR loan limit for Montezuma County?
No hard limit. Typical minimums are $100,000–$125,000.
Do I need a property manager to qualify?
No. Self-managed properties qualify the same as professionally managed ones.
Can I do DSCR on a manufactured home near Mesa Verde?
DSCR lenders generally don't lend on manufactured homes. FHA, USDA, or VA are the right paths — see our FHA in Cortez page.