DSCR Loans in Pagosa Springs, Colorado
Qualify on $38K/year in STR income — not your tax returns.
A real DSCR market with year-round demand
Pagosa Springs STR investors earn a median $38,114/year with an average daily rate of $248 and 54% occupancy. Entire homes dominate at 85.4% of active listings. Year-round demand — hot springs, Wolf Creek, summer outdoor recreation — keeps occupancy strong outside ski season, which matters for DSCR underwriting.
Tayton Capital structures DSCR financing for Pagosa Springs and Archuleta County investors. Western Slope broker, multiple non-QM lenders, real STR income modeling.
The city vs. county STR divide
More than 80% of Pagosa Springs STRs operate outside city limits in Archuleta County, not inside the Town of Pagosa Springs. The two jurisdictions have different rules, and county STRs have historically been less regulated than town STRs. Archuleta County is actively revising STR policy, so verifying the zoning and licensing status of a specific parcel before going under contract matters.
DSCR lenders factor recurring tax and licensing obligations into net operating income. We model those figures so the ratio you qualify on isn't a number that falls apart after closing.
Wolf Creek and STR income — the 23-mile nuance
Wolf Creek Ski Area — one of Colorado's snowiest resorts — is 23 miles from town and has effectively no ski-in/ski-out lodging. Guests ski Wolf Creek and stay in Pagosa Springs. The practical consequence: Pagosa STRs don't need ski-in access to capture ski-season demand. Properties near downtown amenities, hot springs, and restaurants typically outperform remote rural properties despite being farther from the mountain.
DSCR qualification basics
DSCR lenders use third-party STR data (AirDNA, Rabbu) to project income for properties without rental history. Pagosa has enough active listings to make projections reliable — not every rural Colorado market does. Typical structure: 25% down, no personal income documentation, and a DSCR ratio (income ÷ PITIA) of 1.0+ to qualify on most programs.
More: DSCR program overview, Colorado investment property loans, DSCR vs. conventional.
USDA vs. DSCR — they don't compete
Archuleta County has significant USDA-eligible areas, and investors sometimes ask about using USDA for an investment property. USDA is owner-occupied primary residence only — it cannot be used for non-owner-occupied rentals. DSCR is the correct program for investment properties in Pagosa regardless of USDA eligibility on the parcel.
Archuleta County 2026 conforming limit: $832,750. See Colorado loan limits.
Other Western Slope DSCR pages
Closed deals in Pagosa Springs
"TJ used AirDNA comps to project income on a property with no rental history. DSCR lender accepted it, closed in 30 days."
"Skipped buying a remote cabin closer to Wolf Creek because TJ showed me downtown Pagosa STRs outperform. Booking calendar proved him right."
"Modeled the deal with conservative occupancy and AirDNA comps. The ratio held — no surprises later."
Run the DSCR numbers on your Pagosa deal
AirDNA-backed income projections. Call or text TJ at 970-708-9624.