Questions
The questions investors actually ask.
Qualification, Colorado property rules, the process from first call to funding, and the compliance boundaries of business-purpose lending. 19 answers, no marketing filler.
01
Qualification and the ratio
5 questions in this section.
What exactly is a DSCR loan?
It is a mortgage for investment property where the approval turns on the property’s income rather than your personal income. The lender divides the rent the property supports by the full monthly housing payment — principal, interest, property taxes, insurance and HOA dues — and the result is the debt service coverage ratio. A ratio at or above the program’s threshold is the core of the approval.
What coverage ratio do most Colorado files need?
Thresholds are set by the program and the lender, and they move with the property type, leverage and the strength of the rest of the file. Rather than chasing a single number, it is more useful to know that a comfortable margin gives you room for a vacancy month or an insurance increase, while a thin margin leaves none. We will tell you what a specific program requires for a specific property once we have the rent, tax and insurance figures.
Is my credit still checked?
Yes. A coverage-based loan reduces the income documentation, but the lender still evaluates credit and underwrites the guarantor. A history of recent serious derogatory credit can end the conversation regardless of how well the property covers its payment.
Is a larger down payment the only way to fix a thin ratio?
No, but it is the most reliable one. The other levers are a property with a lighter tax and insurance load, a documented rent that is higher than the seller projected, and a longer amortization that reduces the monthly payment. What does not work is underwriting to a rent the market does not support.
Can I use rental income from a property I already own?
Sometimes, as part of a broader picture, but it does not replace the coverage test on the property being financed. A portfolio approach can help a file where several properties support each other, which is one reason portfolio lending exists as a separate conversation.
02
Property and Colorado rules
5 questions in this section.
Which property types can you arrange financing for?
Non-owner-occupied residential investment property: single-family rentals, duplexes through fourplexes, condos and townhomes, small multi-family buildings, and mixed-use where the majority of the building is residential. Manufactured housing on owned land is considered case by case. Because this is business-purpose financing, owner-occupied and second-home use is outside the program.
Can I finance a short-term rental in a mountain town?
In many cases, yes, when the use is legal and the income is documented. That means a license the property can hold, an association that permits nightly rentals, and revenue evidence rather than a projection. Where the license does not transfer to a buyer or the association prohibits nightly use, the file would be presented to lenders as a long-term rental instead.
Can you help with property outside Colorado?
The brand and the content are Colorado-focused, and Colorado is where our market knowledge is deepest. Where a scenario can be arranged depends on the licensing that applies to business-purpose brokerage in the property’s state; the licensing page lists the licenses Loan Daddy LLC holds. If a property is outside Colorado, say so in the form and we will tell you honestly whether it is a fit.
What about a property with an unpermitted unit?
An unpermitted unit generally cannot be counted as rent for underwriting. The property may still be financeable as the legally recorded configuration, which changes both the value and the coverage ratio. Confirm the recorded unit count before you make an offer rather than after the appraisal.
Is a deed-restricted unit in a resort town an option?
Usually not for investment purposes. Deed-restricted resident housing typically carries occupancy and resale covenants that prohibit renting the unit out at market, and lenders will not finance a business-purpose purchase of a unit whose deed forbids investment use.
03
Process and timeline
5 questions in this section.
How long does a file take from first call to funding?
A clean purchase with a cooperative seller, a lease or rent support in place, and documents gathered early usually moves in a few weeks. Files stretch when the appraisal surfaces repairs, the insurance quote arrives late, or the entity and title work do not match. The single biggest time-saver is collecting the tax bill, the insurance quote and the leases before the offer.
Do I need to be in Colorado to close?
No. Most of the process runs remotely — documents are signed electronically, the appraisal is ordered by the lender, and closing can be handled through a title company with remote or mobile notary arrangements. What matters is that you have a clear view of the property, either through an inspection or a trusted local contact.
Can I close in an LLC?
Yes, and many investors do. Expect to provide the operating agreement, formation documents, an EIN and a certificate of good standing, plus a personal guaranty. The contract, title, insurance and loan documents all need to name the same entity, which is why the vesting decision belongs at the start of the file.
What documents should I gather first?
Identification, a credit authorization, bank statements showing the down payment and reserves, the purchase contract, the current leases, the county tax record for the parcel, and a landlord insurance quote for the address. If you are buying in an entity, add the entity documents. If the property is a condo, add the association certification and budget.
Do you charge for a scenario review?
No. A scenario conversation is free, and you will get a straight answer about what is achievable for a specific property, including when the answer is that the coverage does not work. If we proceed, third-party costs such as the appraisal are disclosed before they are incurred.
04
Compliance and scope
4 questions in this section.
Are these consumer mortgages?
No. This is business-purpose financing for non-owner-occupied investment property. Loans for personal, family or household use — including a home you or a family member will occupy — are outside what this program does, and we will say so plainly rather than take an application that cannot be placed.
Are you a lender?
No. Loan Daddy LLC is a mortgage broker. We arrange and shop financing from wholesale lenders, which means the loan is made by a lender and we work the file on your side. That also means terms are subject to underwriting and lender approval, and subject to change until they are locked.
Why are there no rates published on this site?
Because a rate depends on the property, the leverage, the credit profile, the reserves and the lender, and publishing a headline figure would tell you nothing true about your file. We will quote a real scenario once we have the numbers rather than advertising a number that does not apply to you.
What licenses does the company hold?
Loan Daddy LLC holds NMLS #2827624 and is listed in the national registry at nmlsconsumeraccess.org. Broker, not lender. AZ CMB Licensed · #CMB-2016143. The licensing page carries the full statement.
Still unsure
Ask about a specific address.
General answers only go so far. The useful conversation is about one property, its rent, its tax bill, its insurance quote and what you intend to borrow. That takes about ten minutes and costs nothing.
What we will not do
- Quote a rate before we have seen the property and the credit profile.
- Take an application for a property you intend to occupy.
- Tell you a deal works when the coverage does not.
- Publish a statistic we cannot source and date.
Tell us the address and the rent. We will tell you what the numbers look like.
No rate quotes on a website, no pressure. A short scenario conversation, then a straight answer about what is achievable for that property.