With Colorado’s towering mountain peaks, it's no surprise that the state is home to the highest city by elevation in the United States – Leadville. This city sits at 10,152 feet above sea level! Over the past few decades, Colorado real estate has elevated much like its mountains.
The Colorado real estate market has many opportunities for foreign nationals to explore. Navigating the U.S. from abroad comes with its own set of challenges, especially when it comes to securing financing and understanding complex regulations. While the potential rewards are high, foreign investors often have to jump through additional hoops to secure funding and complete transactions. That's why it’s crucial to find the right support and a lender you can trust. Here’s Waltz’s guide to Colorado real estate, where you’ll find everything you need to know to get started as a foreign investor.
We are providing the following discussion to you for informational purposes only. All investments, including real estate, involve risk, and we encourage you to invest carefully. The information in this article is not intended to replace or serve as a substitute for any legal, real estate, tax, or other professional advice or service. You should consult with a professional in the respective legal, tax, accounting, real estate, or other professional area before making any decisions or entering into any contracts relating to a rental property.
As a real estate investor, debt-service-coverage-ratio (DSCR) loans may be an appealing loan option.
DSCR loans are different from conventional loans because they focus on how much income the property can generate, rather than your personal income or credit score.It allows you to invest in U.S. real estate as long as you meet certain financial and legal guidelines. This opens up the chance to own property in desirable locations like Colorado as rentals.
DSCR loans offer customized solutions to make investing easier for you. Here are the main benefits:
If you want to invest in the growing Colorado real estate market, a DSCR loan could be the right fit for you. Explore our variety of DSCR loans to take the next step in financing your property investments with confidence.
Start the application process here.
If you're looking into real estate investment loans in Colorado, you'll notice that each lender has their own set of rules and requirements.1 With that said, there are some common standards most lenders follow including:
Most Lenders: Income earned within the U.S. is typically easier for lenders to verify, as they are more familiar with local income sources. As a result, U.S.-based earnings are usually less scrutinized compared to foreign income. However, if your income comes from outside the U.S., some lenders may be hesitant to approve your loan.
For those who are willing to work with foreign income, lenders will ask for thorough documentation to prove that you have a steady and reliable income. This is to ensure you can consistently repay the loan. Here are some of the common types of documents lenders may request:
Waltz: We specialize in foreign national loans and know that income documentation can vary depending on where you’re from. Unlike most lenders, we make the process easier by asking the right questions to help you verify your income. Here’s how we stand out:
Most Lenders: It’s common for most lenders to ask that you pay 30-50% of the loan amount in a down payment. Sometimes, it can even be higher. Additionally, lenders may require you to maintain and show a certain percentage of the loaned amount as a reserve in your bank account.
They do this to account for situations where the property is vacant or needs maintenance and repairs. This standard practice often becomes a deterrence when going for financing options.
Waltz: The required down payment for our loans can vary depending on the buyer. We assess each situation individually, which means some buyers may qualify for a down payment as low as 25%, though 30% is typically the standard. In certain cases, we may also waive the reserve requirements based on specific factors on an individual basis.
Most Lenders: Typically, lenders will ask for your passport and visa. For loans on investment properties, they often require the loan to be made to a U.S.-based LLC, with you as the personal guarantor. In such cases, they may also ask for the LLC's operating agreement.
Waltz: Establishing proof of identity (KYC) is a standard practice for investment loans. To verify your identity, all we require is a valid passport, which can be from your home country. If you don’t yet have an LLC, we can assist you in setting one up. With our Investor Toolkit, you'll receive an LLC along with an Employer Identification Number (EIN)—and it’s ready in just minutes!
Most lenders: Credit scores are a key factor when applying for a loan. While some lenders may accept scores as low as 640, the real challenge for international borrowers is the reliance on FICO scores. If you don’t have a U.S. credit history, which is common for many foreign borrowers, lenders can be hesitant to approve your loan. Even if your credit score is solid in your home country, the lack of a U.S. credit history can be a major barrier.
Waltz: We recognize that as a non-U.S. citizen, you may not have a U.S. credit score. That’s why we don’t require one for foreign national applicants. Instead, we evaluate your creditworthiness by reviewing your credit history from your home country.
Learn more about how international real estate investors find success with Waltz.
Choosing the right type of property is very important for making the most money from your investment and getting steady rental income. Different types of properties can make different amounts of money and are in different levels of demand. It also affects how you can get a loan because lenders have different rules for different property types, and it will decide how much time and effort you need to spend on managing and fixing the property. By picking the right property, you can lower your risks, reach your goals, and make your investment portfolio more stable.
Now that we’ve established how important the type of property is for success in real estate investment, let’s take a look at what Colorado has to offer.
Colorado is a top destination for real estate investment, and for good reason. Here are a few key benefits to investing in this state.
As Colorado's state capital, Denver is the heart of the state's real estate market. With a booming tech industry (adding 23.7% more jobs in recent years) and a vibrant cultural scene, the city offers significant opportunities for real estate investment. The growing demand for quality rental housing makes Denver an attractive location for those exploring potential opportunities.
Known for its stunning scenery and tech-forward economy, Boulder is a high-demand market for real estate. Located just outside of Denver, it shares the capital city's focus on tech jobs. It’s also home to the main campus of Colorado University, a major employer and also home to tens of thousands of students. Both are advantageous to potential investors.
This picturesque city offers more affordable real estate than Denver while still benefiting from strong job growth, particularly in the defense and technology sectors. Colorado Springs is home to several military bases and popular tourist destinations like Garden of the Gods, enhancing its appeal. Colorado Springs is home to top-rated primary and secondary schools, attracting families as potential renters. The city's economy also saw a 4.4% GDP growth in 2023, outpacing the national average of 2.9%. These factors combine to make Colorado Springs an increasingly appealing option for those considering real estate opportunities.
With its vibrant college-town atmosphere and affordable real estate, Fort Collins offers a favorable alternative to Denver, supported by a diverse and growing economy. Home to Colorado State University, the city fosters innovation in agriculture, clean energy, and technology, with a student headcount of 33,648 in 2023-24. Top employers like Anheuser-Busch, Otter Products, Vestas, and Walker Manufacturing contribute to its strong job market. Fort Collins’ access to outdoor recreation and a thriving arts scene further enhance its appeal, making it an attractive option for real estate investors.
Pueblo offers a lower cost of living and more affordable real estate compared to other Colorado cities, while still benefiting from steady job growth in industries such as manufacturing, healthcare, and agriculture. Known for its rich cultural heritage, Pueblo boasts attractions like the Historic Arkansas Riverwalk and a strong arts community. The city's economy has shown resilience, with a steady increase in employment opportunities in recent years. Pueblo’s combination of affordable living, growing industries, and cultural vibrancy make it an interesting choice for real estate investors.
Colorado offers a world of opportunity for foreign investors, but like any state, there are a few things to keep in mind before purchasing a property here. These include:
Refinancing your Colorado investment property involves replacing your existing mortgage with a new one. This process means tapping into the equity of your property to secure funding for additional investments.
Waltz provides efficient and thorough solutions to simplify this process for Colorado real estate investors. Our expertise guarantees that you can confidently and effectively enhance your Colorado real estate investment strategies. For foreign nationals, the refinancing process typically includes:
Rate-and-term refinancing provides the opportunity to adjust the terms of your current mortgage, potentially securing a more favorable deal on your home loan. However, keep in mind that even if you refinance at a lower interest rate, your overall finance charges could end up being higher over the life of the loan.
Cash-out refinancing allows you to access the equity in your property—enabling you to borrow more than the current mortgage balance, based on the original equity. The additional funds can be used for various purposes, including home improvements, debt consolidation, or a down payment on another property. This provides cash at closing, and opening up new investment opportunities.
Learn more about refinancing.
Securing a DSCR mortgage as a non-U.S. resident in Colorado might seem challenging, but with Waltz, it’s easier than you think. Just follow these seven steps:
1. Find a profitable investment
Start by identifying a property with strong rental potential. Focus on areas in Colorado that meet your criteria.
2. Gather essential documents
Prepare key documents like a valid passport, proof of income (such as foreign bank statements or business financials), and property details. Lenders may also ask for proof of assets or a credit report from your home country.
3. Select a lender experienced with foreign nationals
Look for a lender who understands the needs of foreign investors. They should be familiar with challenges like verifying foreign income and handling the lack of a U.S. credit history. Waltz specializes in foreign national loans and can guide you through this process.
4. Set up an LLC and U.S. bank account
Most lenders will require you to form an LLC in the U.S. to qualify for a DSCR loan. You’ll also need a U.S. bank account for financial transactions. If you don’t have an Employer Identification Number (EIN) yet, setting up both can take time. However, with our Investor Kit, you can instantly establish an LLC and U.S. bank account2—saving you from months of waiting.
5. Submit your loan application
Before submitting your loan application, it's helpful to speak with an account executive who can answer any questions and guide you through the process. They’ll help streamline the application, ensuring you have all the necessary property details, financial documents, and proof of the property’s income potential. Once you've gathered everything, submitting your application should be quick and straightforward!
6. Perform due diligence
This step includes inspecting the property, getting an appraisal, and fulfilling any additional document requests from the lender to verify the property’s condition and value. You’ll also want to review your term sheet!
7. Complete the purchase process
Once due diligence is done and your loan is approved, it's time to finalize the transaction. Sign the required paperwork—if you're outside the U.S., this can sometimes be done virtually. Finally, transfer the funds to close the deal, and you'll own a rental property in Colorado!
Apply for a DSCR loan today!
