Non-QM Loans in Colorado
Colorado's thriving tech industry, outdoor lifestyle appeal, and strong tourism market create unique opportunities for Non-QM borrowers. From Denver's urban market to mountain resort properties, flexible financing solutions serve diverse borrower needs.
$550,000
Median Home Price
$485,000
Avg. Loan Amount
48+
Licensed Lenders
12+
Major Markets
Colorado Real Estate Market
Why Non-QM loans are popular in Colorado
Strong tech sector creates self-employed and contractor income profiles
High-value mountain resort properties require jumbo Non-QM options
Robust short-term rental market in ski towns and tourist areas
Growing population of remote workers with non-traditional income
Investment opportunities in Denver metro and college towns
Second home market active in mountain communities
Non-QM vs Conventional in Colorado
See how Non-QM mortgage options compare to conventional loans for Colorado borrowers
| Feature | Non-QM Loans | Conventional |
|---|---|---|
| Interest Rates | 6.75% - 8.75% | 6.25% - 7.25% |
| Min. Credit Score | 580-620 | 620-680 |
| Max DTI Ratio | Up to 50-55% | Up to 43-45% |
| Down Payment | 10-25% | 3-20% |
| Income Documentation | Bank Statements, 1099, P&L, Assets | W-2, Tax Returns, Pay Stubs |
| Max Loan Amount | Up to $3M | $816,500 |
| Closing Time | 21-30 days | 30-45 days |
| PMI Required | No (typically 10%+ down) | Yes (if < 20% down) |
* Rates and terms are approximate and vary by lender, credit profile, and property type. Data reflects typical Colorado market conditions as of 2026.
Popular Non-QM Programs in Colorado
These loan programs are especially popular among Colorado borrowers
Top Colorado Markets We Serve
Non-QM lending available throughout Colorado
Colorado Lending Regulations
Colorado is regulated by the Division of Real Estate under the Department of Regulatory Agencies (DORA). Mortgage loan originators must be licensed under the Colorado Mortgage Loan Originator Licensing Act. Colorado has specific disclosure requirements and consumer protections.
Colorado Non-QM Loan FAQs
Common questions about Non-QM loans in Colorado
Can I get a Non-QM loan for a ski property in Colorado?
Yes! DSCR loans are popular for ski town properties where short-term rental income can be used to qualify. Bank statement and asset depletion loans are also available for second homes in mountain communities.
What loan amounts are available for Denver luxury homes?
Non-QM loans in Colorado can exceed $2-3 million for luxury properties in Denver, Boulder, and mountain resort areas. Jumbo Non-QM options are available for high-value purchases.
Are Non-QM loans available for Colorado condos?
Yes, including non-warrantable condos that don't meet conventional guidelines. This is common in ski resort areas where many buildings have high investor concentration or HOA issues.
Can I use rental income from a Colorado vacation property?
Absolutely! DSCR lenders will consider short-term rental income from platforms like Airbnb and VRBO. Some use actual rental history, while others use projected income from market analysis.
How do Colorado's property taxes compare for loan qualification?
Colorado has relatively moderate property taxes compared to other states, which can help your debt-to-income ratio. However, mountain properties may have additional HOA fees that are factored into qualification.
What are current Non-QM mortgage rates in Colorado?
Non-QM mortgage rates in Colorado typically run 0.5-1.5% higher than conventional rates. As of 2026, expect rates between 6.5% and 9.5% depending on the program, credit score, and down payment. Bank statement loans and DSCR loans in Denver and Colorado Springs tend to have competitive pricing due to higher lender competition.
What income documentation alternatives are accepted for Non-QM loans in Colorado?
Non-QM lenders in Colorado accept several alternative income documentation methods: 12 or 24 months of bank statements (personal or business), 1099 forms, profit and loss statements prepared by a CPA, asset depletion calculations, and rental income from DSCR analysis. This flexibility makes homeownership accessible for self-employed borrowers, freelancers, and investors throughout Colorado.
What property types qualify for Non-QM financing in Colorado?
Non-QM loans in Colorado cover a wide range of property types including single-family homes, condos (including non-warrantable), townhomes, 2-4 unit properties, and some commercial mixed-use properties. Investment properties, vacation homes, and primary residences all qualify. In markets like Denver and Colorado Springs, multi-unit properties are especially popular for DSCR loans.
What is the minimum down payment for a Non-QM loan in Colorado?
Most Non-QM programs in Colorado require a minimum down payment of 10-20%, though some lenders offer options as low as 10% for primary residences with strong compensating factors. DSCR loans for investment properties typically require 20-25% down. With the median home price in Colorado around $550,000, this means a down payment starting at approximately $82,500 to $110,000.
Can I refinance into a Non-QM loan in Colorado?
Yes, Non-QM refinancing is available in Colorado for both rate-and-term and cash-out refinancing. Cash-out refinances allow up to 75-80% LTV in most cases. This is particularly popular among Colorado homeowners who want to tap equity without providing traditional income documentation, or investors looking to pull equity from rental properties in Denver or Colorado Springs to fund additional purchases.
How do DSCR loans work for Colorado investment properties?
DSCR (Debt Service Coverage Ratio) loans in Colorado qualify borrowers based on the rental income of the property rather than personal income. The property's monthly rental income must typically cover 1.0x to 1.25x the monthly mortgage payment (PITI). No employment verification, tax returns, or W-2s are required. This makes DSCR loans ideal for scaling a rental portfolio in Colorado's growing markets.
What happens if I have a recent bankruptcy or foreclosure in Colorado?
Non-QM lenders in Colorado offer programs for borrowers with recent credit events. Many programs allow financing just 1-2 years after a bankruptcy discharge (compared to 4-7 years for conventional loans) and 2-3 years after a foreclosure. Expect to provide a larger down payment (typically 20-25%) and accept a slightly higher interest rate, but homeownership is still achievable.
Are Non-QM loans available for foreign nationals buying property in Colorado?
Yes, several Non-QM lenders in Colorado offer foreign national loan programs. These loans do not require a U.S. Social Security number, credit history, or visa. Foreign nationals can purchase investment properties or vacation homes in Colorado with as little as 25-30% down. Popular areas for foreign national buyers include Denver and Colorado Springs.
What is the maximum loan amount for Non-QM loans in Colorado?
Non-QM loan amounts in Colorado typically range from $100,000 to $3 million, with some lenders offering up to $5 million for jumbo Non-QM programs. There are no conforming loan limits to worry about since Non-QM loans are not sold to Fannie Mae or Freddie Mac. High-value properties in Denver and Colorado Springs can be financed with these higher limits.
How does a bank statement loan work for self-employed borrowers in Colorado?
Bank statement loans in Colorado allow self-employed borrowers to qualify using 12 or 24 months of personal or business bank statements instead of tax returns. The lender calculates your income by averaging deposits over the statement period, typically using 50-100% of deposits for business accounts and 100% for personal accounts. This is ideal for Colorado business owners who maximize tax deductions.
What are the DTI requirements for Non-QM loans in Colorado?
Non-QM loans in Colorado generally allow higher debt-to-income (DTI) ratios than conventional loans. Most programs accept DTI ratios up to 50%, and some lenders go as high as 55% with compensating factors such as a larger down payment, significant reserves, or a higher credit score. DSCR loans do not use personal DTI at all, focusing instead on the property's cash flow.
Do I need reserves to qualify for a Non-QM loan in Colorado?
Most Non-QM lenders in Colorado require 3-12 months of mortgage payment reserves in liquid assets after closing. The exact requirement depends on the loan program, property type, and credit profile. Investment property loans and jumbo Non-QM loans typically require more reserves (6-12 months), while primary residence loans may require as few as 3-6 months.
How does Non-QM lending compare to conventional mortgages in Colorado?
Non-QM loans in Colorado differ from conventional mortgages in several key ways: they accept alternative income documentation (bank statements, 1099s, asset depletion), allow lower credit scores (as low as 580 vs. 620+ for conventional), permit higher DTI ratios (up to 50-55%), and have no conforming loan limits. The trade-off is slightly higher interest rates (0.5-1.5% above conventional) and larger down payment requirements (typically 10-25% vs. 3-5% for conventional).
Colorado Non-QM Lending Articles
In-depth guides and market analysis for Colorado borrowers and investors
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