Denver's dynamic real estate market demands financing that moves quickly. With median home prices around $583,000 and limited inventory, investors need capital partners who understand the city's property landscape.
Different neighborhoods require different financing strategies. Whether you're renovating a Victorian in Capitol Hill or building new construction in Stapleton, the right short-term loan can mean the difference between securing a deal and losing to a cash buyer.
This guide explains Denver’s short-term financing options: fix-and-flip funding, bridge financing, rental property loans, and new construction financing.
Denver’s Investment Climate: Why Timing Matters
The Denver metro area remains active in 2025, supported by the region’s tech and aerospace industries, lifestyle appeal, and central U.S. location.
Market Conditions Favor Fast Closings
- Properties typically sell within three weeks of listing
- Cash and near-cash offers often win deals
- Inventory shortages drive competitive bidding
- Traditional mortgage loans often move too slowly
Recent data shows the median home sale price in Denver County is $583,000, a slight 2.6% year-over-year decline. Desirable properties still attract multiple offers, especially in luxury areas and growing neighborhoods.
Understanding Short-Term Real Estate Financing
Short-term loans generally last from 6 to 24 months. These products prioritize fast closings and base approvals on property value and investment strategy rather than detailed personal financials.
These loans offer:
- Fast approvals
- Minimal documentation
- Property-based underwriting
- No monthly payments
Denver investors may close within 7 to 14 days, providing an advantage in competitive situations.
Fix and Flip Loans: Maximize Renovation Returns
Fix-and-flip loans offer capital for purchasing and renovating properties. They are ideal for undervalued or distressed homes.
Best Uses for Flip Loans
- Cosmetic or structural updates
- Properties in appreciating areas
- Deals with clear renovation plans
- Projects requiring fast closings
Flip-Friendly Denver Markets
- RiNo: About $372/sq ft, strong potential for creative renovations
- Capitol Hill: Historic homes with renovation potential and higher resale values
- Lakewood and Thornton: Suburban areas with properties above $300/sq ft, median price ~$575,000
- Stapleton: Master-planned area with modern homes and strong buyer demand
Flip Loan Highlights
- 6–18 month terms
- Up to 70% ARV and up to 90% project costs, with potential for 100% LTC depending on borrower qualifications and project type
- No monthly principal payments
- Draws released as renovation milestones are met
- Loan amounts typically range from $75,000 to $2.5 million
- No monthly payments
Bridge Loans: Funding Fast-Paced Acquisitions
Bridge loans are temporary funding tools designed for investors needing to act quickly.
Ideal Use Cases
- Estate sales or auction purchases
- Properties with temporary issues
- Overlapping ownership periods
- Offers requiring fast, cash-like financing
Denver-Specific Insights
- Mountain homes may cost 15–30% more and have longer timelines
- Condos under litigation may only qualify for cash or bridge loans
Key Features
- Typically 6–24 month terms
- Up to 80% loan-to-value
- Closing timelines of 7 to 14 days
- Minimal documentation
- Local knowledge of Denver regulations
- Loan sizes typically range from $75,000 to $2.5 million
- No monthly payments
DSCR Loans: Rental Property Financing Based on Income
Debt service coverage ratio (DSCR) loans focus on rental income rather than borrower income. These loans are often used by rental property investors.
Who Uses DSCR Loans?
- Investors building rental portfolios
- Self-employed borrowers
- Short-term rental property investors
- Rental property investors scaling operations
Rental Market Snapshot
Denver's rental demand remains strong due to job growth and quality of life. University zones see seasonal leasing. Downtown and tech areas support year-round occupancy.
A DSCR above 1.0 means rental income covers the loan. A ratio above 1.25 often qualifies for the best terms.
Loan Features
- 6–18 month terms
- Approval based on property income
- Works for various rental property types
- Eligible for single-family and 2–4 unit properties
- Loans typically range from $75,000 to $2.5 million
- No monthly payments
New Construction Loans: Build or Expand in Denver
New construction financing supports both ground-up builds and major additions. Funds are disbursed in stages as construction progresses.
When to Use Construction Financing
- Vacant lots or teardown projects
- Major additions or gut renovations
- Small multifamily developments
- Infill construction in established neighborhoods
Local Construction Factors
- Permitting timelines vary by area
- Energy efficiency codes affect project plans
- Mountain weather can delay builds
Estimated Project Timelines
- Downtown: 3–6 months
- Littleton, Arvada: 2–4 months
- Mountain zones: 4–8 months
- Historic districts: May require additional time
Construction Loan Features
- 6–18 month terms
- Up to 90% Loan-to-Cost and 70% ARV, with potential for 100% LTC depending on borrower qualifications and project type
- Single-family and 4-unit properties are eligible
- No monthly payments
Denver Loan Comparison Matrix
|
Financing Type
|
Duration
|
Primary Use
|
Maximum Leverage
|
Core Advantage
|
|
Fix & Flip
|
6–18 months
|
Renovation
|
70% ARV / 90% LTC†
|
Deferred payments
|
|
Bridge Loan
|
6–24 months
|
Acquisition
|
80% LTV
|
Fast closings
|
|
DSCR Rental Loan
|
6–18 months
|
Rental properties
|
80% LTV
|
No income docs
|
|
Construction
|
6–18 months
|
New builds
|
90% LTC† / 70% ARV
|
Milestone-based draws
|
†100% LTC may be available for qualified borrowers and select projects.
Choosing the Right Financing Strategy
Match Loans to Exit Strategy
- Quick flips: Fix-and-flip loans
- Long-term rental holds: DSCR loans
- Transitional acquisitions: Bridge loans
- Build-from-scratch projects: Construction loans
Consider Timing
- Bridge loans: Fastest closings (7–14 days)
- Fix-and-flip: Also close quickly
- DSCR and construction: Typically require more underwriting time
Understand Neighborhood Dynamics
- RiNo: Strong potential for fast-turn projects
- Capitol Hill: Longer timelines due to historic preservation
- LoHi: Consistent rental demand for DSCR financing
Why Work With Us
We support Colorado investors with:
- Neighborhood insights from Cherry Creek ($439/sq ft), LoHi ($469/sq ft), and beyond
- Interest-only structures for better cash flow
- Fast funding released by construction milestones
- Loan amounts between $75,000 and $2.5 million
- No monthly payments
Frequently Asked Questions
What’s the difference between fix-and-flip and bridge loans?
Fix-and-flip loans include both purchase and renovation funds. Bridge loans are used for fast acquisitions and typically do not cover rehab costs.
Can I qualify for a DSCR loan if I’m self-employed?
Yes. DSCR loans are based on property rental income, so personal income documentation is not required.
How fast can I close on a Denver investment loan?
Bridge and fix-and-flip loans typically close within 7 to 14 days. DSCR and construction loans generally require 2 to 3 weeks.
Do your loans include prepayment penalties?
Loans repaid in the first three months may include three months of interest. After that period, there are no prepayment penalties.
What types of homes are eligible for short-term financing?
Eligible properties include single-family homes, condos, and 2–4 unit residential buildings. Larger deals may require commercial loan structures.
Can you finance historic properties?
Yes. We understand Denver’s historic district permitting process and timelines, including neighborhoods like LoDo and Capitol Hill.
Do you lend on mountain properties?
Yes. We account for premium pricing and extended project timelines in mountain zones.
Let’s Get Your Project Funded
Denver’s competitive market rewards fast, prepared investors. Our short term real estate loans in Denver help you act quickly and strategically.
Whether you’re flipping in RiNo, developing in Stapleton, or building a rental property portfolio in Capitol Hill, we provide the financing to support your strategy.
Partner with a lender that understands Denver County, delivers fast closings, and helps you execute with confidence.
Looking for more insights? Read another Denver real estate investment blog or visit our Denver homepage to learn more.