Buying a condo in Summit County? Your lender may be evaluating more than just your finances. Here’s what you need to know about warrantable and non-warrantable condos—and why River West is a good example.

If you’re buying a condominium in Breckenridge, Keystone, Copper Mountain, Frisco, Silverthorne, or Dillon, you probably know that your lender will review your income, credit, assets, and debt.

But there’s another important question:

Does the condominium project itself qualify for your loan?

This is becoming an increasingly important issue for condo buyers because conventional lenders have strict requirements for condominium projects. If a project doesn’t meet those requirements, the condo may be considered non-warrantable, which can make conventional financing difficult or unavailable.

What Is a Warrantable Condo?

A warrantable condo is part of a condominium project that meets the requirements for conventional financing through lenders backed by Fannie Mae and Freddie Mac.

For buyers, this generally means more access to traditional mortgage options and competitive interest rates.

A non-warrantable condo does not meet those requirements.

That doesn’t necessarily mean you can’t buy the property. However, you may have fewer financing options, potentially higher interest rates, larger down payment requirements, or different loan terms.

For many buyers, that can make a significant difference.

Why Does the HOA Matter?

Here’s the part many condo buyers don’t realize:

Your lender may be reviewing the entire condominium project—not just you.

The lender can look at things such as:

• HOA finances and reserves
• Insurance coverage
• Fidelity insurance
• Special assessments
• Litigation
• Building condition
• Deferred maintenance
• Ownership and occupancy
• Other project-level requirements

So even if you’re a highly qualified borrower, an issue with the HOA or condominium project could affect your ability to obtain conventional financing.

River West: A Real-World Example

A recent transaction at River West in Summit County demonstrates why this matters.

The buyer’s lender identified an issue with the condominium association’s Fidelity insurance coverage. The coverage was below the amount required under the applicable conventional financing requirements.

This wasn’t a problem with the buyer’s credit, income, down payment, or ability to repay the loan.

It was a project-level issue.

And that’s important because a project-level financing issue can potentially affect every unit in the condominium complex, not just the buyer involved in one transaction.

The good news is that the River West issue appears to be something that can be corrected. Increasing the association’s coverage could potentially bring the project back into compliance. And the cost to increase that coverage is likely a nominal amount.

But the situation highlights an important lesson for condo buyers:

If possible, don’t wait until you’re under contract to find out whether the condominium project is financeable.

What Happens If a Condo Is Non-Warrantable?

If a condominium project doesn’t meet conventional financing requirements, a buyer may need to look at alternative financing.

Depending on the property and lender, that could mean:

• Higher interest rates
• Larger down payments
• Different loan terms
• Portfolio or specialized condo loans
• A smaller pool of available lenders

For some buyers, the additional cost may be manageable.

For others, it could make the purchase no longer financially feasible.

And if a buyer cannot obtain the financing they need, the transaction could potentially fall apart.

Why Condo Warrantability Matters to Sellers, Too

This isn’t only a buyer issue.

If a condominium project becomes non-warrantable, future sellers may have a harder time finding buyers who can obtain conventional financing.

A smaller pool of qualified buyers can mean:

• Fewer offers
• Longer time on market
• More negotiating pressure
• Potentially less favorable sale prices

That’s why maintaining the condominium project’s financing eligibility can be important for every owner in the building.

What Should You Do Before Buying a Summit County Condo?

If you’re considering a condo, talk to your lender before making an offer—or as early in the process as possible.

Ask:

“Is this condominium project eligible for conventional financing?”

Your lender may need to review HOA documents, insurance information, financial statements, and other project records before giving you an answer.

It’s also important to work with a lender who understands condominium financing and mountain properties, because Summit County condos can have unique HOA, insurance, rental, and ownership considerations.

The Bottom Line

When buying a condo, you’re not just buying the four walls of your unit.

You’re also buying into a condominium project and its HOA.

The River West example shows how something as specific as an HOA’s insurance coverage can potentially affect financing for an entire condominium complex.

Before you fall in love with a condo—or write an offer—make sure your lender has looked at the property and the project.

The goal isn’t just to find you a great condo.

It’s to help you understand what you’re actually buying.

Buying or Selling a Condo in Summit County?

Whether you’re buying or selling a condominium in Summit County, these financing and HOA requirements can add layers of complexity to an already complicated transaction. As a local real estate expert with experience navigating the unique challenges of the Summit County mountain market, I can help you understand the potential issues before they become problems, coordinate with your lender and other professionals, and develop a strategy that supports your goals. If you’re considering buying or selling a condo in Breckenridge, Keystone, Copper Mountain, Silverthorne, Frisco, or Dillon, reach out to me—I’d be happy to help you navigate the complexities and make informed decisions with confidence.

Disclaimer: Condominium financing requirements vary by lender, loan program, and project. This article is for general educational purposes and should not be considered mortgage, legal, or financial advice. Always confirm current financing requirements with your lender.

I’m excited to share that I’ve been nominated for Best Real Estate Agent in the Best of Summit awards!

Serving the Summit County community and helping buyers and sellers achieve their real estate goals is something I’m truly passionate about. Whether you’ve trusted me to help you buy or sell a home, referred a friend, or simply followed my market updates, I’m incredibly grateful for your support.

If you’ve enjoyed working with me or found my real estate resources helpful, I would be honored to have your vote.

Voting is free, takes just a minute, and ends July 31.

👉 Vote here: https://www.summitdaily.com/bestofsummit2026/#/group/2622/nom/45866/273593

Every vote helps support my small business and means more to me than you know. Thank you for your trust, your referrals, and the opportunity to serve this incredible mountain community.

I truly appreciate your support!

Kelly Gafa
Associate Broker | Colorado Real Estate Company
KellySellsSummit.com

If you’re buying or selling real estate in Summit County, Colorado, the season can have a significant impact on what a home inspector is able to evaluate. While winter home inspections are still an important part of the buying process, the snow that makes our mountain communities so beautiful can also hide potential maintenance issues.

Whether you’re purchasing a ski chalet in Breckenridge, a mountain home in Silverthorne, or a townhome in Keystone, a summer home inspection often provides a much more complete picture of a property’s overall condition.

A Better Look at the Roof

In the Colorado mountains, the roof is one of the hardest-working components of any home. Heavy snowfall, ice, hail, and intense UV exposure all take their toll throughout the year.

During the summer, inspectors can thoroughly examine:

• Roofing materials
• Flashing around chimneys and vents
• Skylights
• Gutters and drainage systems
• Sealants and exposed fasteners
• Signs of hail or wind damage

Many of these areas are simply inaccessible during the winter when snow and ice cover the roof. Identifying issues early can help sellers make repairs before listing and gives buyers greater confidence in the condition of the home.

Summer Is the Ideal Time to Service Heating Systems

Homes throughout Summit County depend on reliable boilers and furnaces to make it through long mountain winters. Once the heating season ends, summer becomes the perfect time for preventative maintenance.

With less demand on HVAC companies, it’s often easier to schedule service, and technicians have more time to perform a thorough inspection of the system. They can identify worn components, clean equipment, and make repairs before temperatures begin to drop again.

For sellers, providing documentation that the heating system has recently been serviced can be a valuable selling feature. Buyers appreciate knowing one of the home’s most important systems has been professionally maintained.

Decks and Outdoor Living Spaces Can Be Fully Evaluated

Outdoor living is one of the biggest attractions of owning a mountain home in Summit County. Whether it’s enjoying morning coffee with mountain views or entertaining after a day on the trails, decks are an extension of the home’s living space.

Unfortunately, snow often hides the condition of these areas during winter.

A summer inspection allows professionals to examine:

• Deck boards
• Railings
• Structural supports
• Stairs
• Hardware and fasteners
• Moisture damage
• Rot and wood deterioration

Because decks are exposed to harsh mountain weather year-round, routine inspections are essential for both safety and long-term maintenance.

Foundations, Drainage, and Driveways Are Easier to Inspect

One of the biggest advantages of a summer inspection is unrestricted access to the home’s exterior.

Inspectors can more accurately evaluate:

• Foundation walls
• Cracks or settlement
• Site grading
• Drainage around the home
• Retaining walls
• Concrete walkways
• Asphalt driveways affected by freeze-thaw cycles

Proper drainage is especially important in the Colorado mountains, where spring snowmelt and summer rainstorms can expose grading or water management issues that aren’t visible beneath winter snowpack.

Landscaping and Exterior Maintenance Become Visible

Summer also provides a better opportunity to assess the property’s overall exterior condition.

Inspectors and buyers can evaluate:

• Siding and exterior paint
• Windows and trim
• Landscaping
• Trees located near the home
• Irrigation systems
• Exterior drainage
• Stonework and retaining walls

These features contribute to both the home’s curb appeal and its long-term maintenance requirements.

More Information Leads to Better Decisions

Every season has its advantages when buying or selling a home, but summer offers the most comprehensive opportunity to evaluate a property’s condition.

For sellers, addressing deferred maintenance before listing can reduce surprises during negotiations and help your home present its best. For buyers, a summer inspection often provides greater peace of mind by revealing areas that simply aren’t visible beneath several feet of snow.

Thinking About Buying or Selling in Summit County?

Whether you’re searching for Summit County homes for sale, preparing to list your property, or purchasing a vacation home in Breckenridge, Frisco, Dillon, Silverthorne, Keystone, or Copper Mountain, understanding what a home inspection can reveal during different seasons is an important part of making an informed real estate decision.

As a local Realtor with nearly three decades of experience helping buyers and sellers navigate the Summit County real estate market, I’m here to help you understand not only the home itself, but also the unique considerations that come with owning property in Colorado’s high country.

If you’re considering buying or selling Summit County real estate, I’d love the opportunity to answer your questions, provide local market insight, and help you navigate the process with confidence.

“When is the best time to buy a home?”

The answer is simple—it depends on what you’re hoping to accomplish.

Are you looking for the largest selection of homes? The best opportunity to negotiate? Or do you want to avoid competing with multiple buyers? Each goal points to a different strategy, especially here in Summit County where our market follows a unique seasonal rhythm.

If Your Goal Is the Largest Selection

If having the most options is your priority, the best time to shop is typically from the second week of June through the third week of July.

This is when the majority of sellers have listed their properties, giving buyers the widest selection of mountain condos, single-family homes, and investment opportunities. More inventory means you’re more likely to find a home that checks all your boxes.

The tradeoff? You’re shopping alongside more buyers, so desirable homes that are priced well can still move quickly.

If Your Goal Is Finding the Best Deal

Many buyers wait for a certain month, hoping sellers suddenly become more willing to negotiate. In my experience, the best opportunities aren’t created by the calendar—they’re created by the property’s story.

I encourage my clients to watch for homes that have:

• Been on the market longer than average
• Had multiple price reductions
• Returned to the market after a contract fell through

These properties often present opportunities to negotiate not only on price, but also inspections, closing costs, furnishings, or other favorable terms. Identifying these opportunities is often more valuable than simply waiting for a different season.

If Your Goal Is Avoiding Competition

If you’d rather not compete with multiple buyers, April and May are often overlooked opportunities.

Inventory hasn’t reached its seasonal peak, but buyer activity is generally quieter before schools let out and summer travel begins.

Another time I love for buyers? The week of Thanksgiving and the weeks leading up to Christmas. Many buyers pause their search during the holidays, while sellers who remain on the market are often highly motivated. I’ve helped clients secure some excellent opportunities during these quieter times of the year.

The Bottom Line

There isn’t one perfect time to buy—only the right time based on your goals.

• Looking for the most choices? Shop from mid-June through late July.
• Looking for the strongest negotiating opportunity? Focus on properties that have been sitting on the market or have experienced price reductions.
• Looking to avoid competition? Consider buying in April, May, or during the holiday season.

Every property is different, and every buyer has different priorities. That’s why I believe timing should be part of a larger strategy—not the strategy itself.

If you’re considering buying in Summit County, I’d be happy to help you build a plan around your goals and identify opportunities as they come to market. Whether you’re searching for a vacation home, investment property, or full-time residence, I’m always happy to be a resource.

Pictured above is Colorado Real Estate’s Exclusive Listing at 1795 Golden Eagle Road in Silverthorne. If you’d like a private tour or have questions about the current market, feel free to reach out anytime.

If you’ve been considering purchasing a home or condominium in Breckenridge, Colorado, there may be even more reason to be excited about the future of one of Colorado’s most iconic ski resorts.

Breckenridge Ski Resort has announced a proposed series of improvements to Peak 9 that are designed to improve the overall guest experience by enhancing skier circulation, modernizing aging infrastructure, and creating a more efficient learning environment for beginners. While the project is still subject to federal review and approval, it represents another significant investment in the long-term future of the resort.

What’s Being Proposed?

The proposed Peak 9 improvement plan includes several major upgrades, including:

• Construction of a brand-new Peak 9 Gondola located near the Quicksilver SuperChair.
• Development of a new beginner learning area featuring:
  • Two surface conveyor lifts
  • A ski and ride school warming hut
  • Public restrooms
  • Expanded snowmaking infrastructure
• Removal of the existing A-Chair once the gondola is complete.
• Replacement of the aging C-Chair with a modern high-speed six-person chairlift.

The new gondola would become the primary access point for Peak 9, while the upgraded learning area is intended to provide a more comfortable and efficient experience for first-time skiers and snowboarders.

Improving the Resort Without Expanding It

One of the most notable aspects of this proposal is that it focuses on improving the existing resort rather than expanding its footprint.

According to Breckenridge Ski Resort, these investments are intended to improve skier flow, reduce congestion, and modernize aging infrastructure while maintaining the current boundaries of the resort.

This follows several recent capital improvements, including:

• Installation of the Freedom SuperChair on Peak 7
• Replacement of 5-Chair with a high-speed lift on Peak 8
• Continued investments in lift infrastructure and guest amenities throughout the mountain

Together, these projects demonstrate Vail Resorts’ ongoing commitment to keeping Breckenridge one of North America’s premier ski destinations.

What Does This Mean for Breckenridge Real Estate?

While these improvements are designed for the skiing experience, they can also have positive implications for the local real estate market.

Resort infrastructure plays an important role in maintaining Breckenridge’s long-term desirability. Continued investment helps preserve the area’s reputation as a world-class destination, which benefits homeowners, vacation rental owners, and prospective buyers alike.

Properties located near Peak 9—including Main Street Station Condos, Water House on Main Street Condos, Plaza Three Condos, Corral at Breckenridge, and other complexes and neighborhoods surrounding the Quicksilver Lift, Main Street, and the south end of Breckenridge—have long been sought after for their exceptional ski access and walkability. Enhanced lift access and improved skier circulation could make these locations even more attractive in the years ahead.

For buyers searching for:

• Breckenridge ski-in/ski-out condos
• Vacation homes near Peak 9
• Luxury mountain properties
• Investment properties with strong vacation rental appeal

these proposed improvements are certainly worth paying attention to.

Current Status

The proposal is currently undergoing review through the U.S. Forest Service’s National Environmental Policy Act (NEPA) process.

Because much of Breckenridge Ski Resort operates on National Forest land, federal approval is required before construction can begin.

The Forest Service has indicated that the earliest approval could occur following completion of the environmental review process. If approved, construction would likely be completed over multiple phases, with the new Peak 9 Gondola expected to take priority over the chairlift replacement.

Thinking About Buying in Breckenridge?

As a local Summit County Realtor®, I closely monitor not only the housing market but also the major developments that can influence property values and buyer demand over the long term.

Whether you’re looking for a ski condo, second home, luxury mountain retreat, or investment property, understanding future resort improvements is an important part of making an informed real estate decision.

If you’d like to discuss which neighborhoods or condominium complexes may benefit most from these proposed improvements—or you’d simply like an update on the current Breckenridge market—I’d be happy to help.

Kelly Gafa
Colorado Real Estate Company

Helping buyers make informed real estate decisions throughout Breckenridge, Keystone, Frisco, Dillon, Silverthorne, Copper Mountain, and surrounding areas near Summit County.

I recently came across a quote often attributed to Warren Buffett that feels especially relevant in today’s real estate market:

“The best buying and selling decisions are made with analysis, not attachment. Emotions belong in your life—not in your negotiations.”

Whether you’re buying or selling, that’s wise advice. Sellers can become emotionally attached to what they believe their property is worth. Buyers can fall in love with a home before objectively evaluating whether it aligns with their goals and finances. As Buffett suggests, good decisions require perspective and discipline—not emotion.

Lately, I’ve had several Summit County homeowners tell me they regret not selling during the peak market of 2022 and 2023.

If you’ve had that thought, I’d encourage you to let it go.

The reason you didn’t sell back then is simple: it wasn’t the right time for you. Maybe you weren’t ready to move. Maybe you hadn’t found your next property. Maybe your family situation wasn’t aligned. Whatever the reason, you made the best decision you could with the information and circumstances you had at the time.

Looking backward rarely helps us make better decisions moving forward.

The question isn’t whether you should have sold three years ago. The question is whether selling makes sense today.

According to Land Title, Summit County’s dollar volume is currently tracking approximately 9% below the same period last year. That’s an important statistic, but numbers alone don’t tell the whole story.

For many owners, a Summit County property represents much more than an investment.

During buyer consultations, I often discuss which neighborhoods and property types have historically produced the strongest appreciation and resale value. Every so often, a buyer will stop me mid-sentence and say:

“Kelly, this isn’t really about the investment. That’s secondary. We’re buying a place where our family can spend time together.”

And honestly, I understand exactly what they mean.

For many families, their mountain property isn’t simply an asset on a balance sheet. It’s where grandchildren learn to ski. It’s where holidays are celebrated, traditions are created, and lifelong memories are made. It’s where family and friends gather for powder days, summer hikes, mountain bike rides, and evenings around the campfire.

If that’s what your property represents, don’t underestimate its value.

Ten years from now, you may not remember exactly what interest rates were or what the market was doing. But you’ll remember the experiences, relationships, and memories that took place there.

That’s why it’s important not to let regret drive your decision-making. Selling simply because you’re frustrated that you missed a previous market peak can be just as emotional as buying because you’re afraid of missing the next one.

Instead, focus on what matters most: your goals, your family, your finances, and your timeline.

It’s also worth recognizing why today’s market looks different than it did a few years ago.

Has Summit County fallen out of favor? Absolutely not.

Have second homes suddenly become undesirable? Not from what I’m seeing.

The fundamentals that have made Summit County special for decades remain firmly in place. We still enjoy world-class skiing, endless outdoor recreation, a vibrant mountain community, and a limited supply of developable land.

What’s changed are the economics.

Higher interest rates have reduced affordability for many buyers, while short-term rental regulations have altered the equation for some investors. More than anything else, those two factors have slowed transaction activity compared to the extraordinary market conditions we experienced during and immediately following the pandemic.

That doesn’t mean demand has disappeared. It simply means the buyer pool has changed.

As our community continues to evolve, conversations about short-term rentals, growth, and housing policy will undoubtedly continue. Some people welcome those changes, while others view them differently. Regardless of where you stand, understanding the factors influencing today’s market is far more productive than dwelling on opportunities that have already passed.

So if you’re contemplating a sale—or considering a purchase—don’t let hindsight dictate your next move.

Don’t sell because you’re frustrated you missed yesterday’s market.

Don’t buy because you’re afraid of missing tomorrow’s.

Make decisions based on where you are today and where you want to be tomorrow.

The market will do what the market does. Your job is to make the decision that’s right for your family and your future.

As Buffett reminds us, analysis should guide our decisions—not attachment. But when it comes to owning a piece of Summit County, it’s also worth remembering that some of life’s greatest returns aren’t measured in dollars at all.

Expert Home Buying Tips from Colorado Realtor Kelly Gafa

Buying a home is exciting, but the financial preparation that happens before you start house hunting is what often determines how smooth — or stressful — the process will be.

As a Colorado real estate agent, I work with buyers at every stage of the home-buying journey, from first-time home buyers to second-home and investment property purchasers in Summit County and throughout Colorado. One of the biggest mistakes I see buyers make is waiting until they’ve found a home to start preparing financially.

The reality is: the strongest buyers prepare months in advance.

If you’re considering buying a home, here are the most important steps you can take now to put yourself in the best possible position when it’s time to apply for a mortgage.

---

1. Understand What You Can Actually Afford

Before browsing homes online, it’s important to understand your true comfort zone financially — not just what a lender may approve you for.

A mortgage payment is only one piece of homeownership costs. Buyers also need to account for:

• Property taxes
• Homeowners insurance
• HOA dues
• Utilities
• Maintenance and repairs
• Existing monthly debts

I always encourage my clients to look carefully at their monthly spending habits before beginning the home search process. A realistic budget creates confidence and prevents unnecessary financial stress later.

Most lenders prefer buyers keep their total monthly debt obligations below roughly 43–45% of their gross monthly income, commonly referred to as your debt-to-income ratio (DTI).

2. Start Saving Earlier Than You Think You Need To

One of the most common misconceptions in real estate is that buyers need 20% down to purchase a home.

In reality, many loan programs offer low down payment options for qualified buyers. However, buyers should still plan ahead for:

• Down payment
• Closing costs
• Earnest money
• Moving expenses
• Inspections and appraisals
• Emergency reserves after closing

In Colorado’s competitive real estate market, having strong financial reserves can also make your offer more attractive to sellers.

3. Keep Your Credit as Strong as Possible

Your credit score directly impacts:

• Loan approval
• Interest rates
• Monthly mortgage payments
• Financing options available to you

Before applying for a mortgage:

• Review your credit report
• Pay all bills on time
• Reduce high credit card balances
• Avoid missed payments
• Dispute any inaccuracies you find

Even a small improvement in your credit score can significantly impact your long-term borrowing costs.

4. Avoid Major Purchases Before Buying a Home

This is one of the biggest issues lenders see during the mortgage process.

Once buyers start preparing for a mortgage, it’s best to avoid:

• Financing a new car
• Opening new credit cards
• Purchasing furniture on credit
• Taking out personal loans
• Making large unexplained deposits

Even if you already qualify, changes to your financial profile during underwriting can create delays or impact approval.

5. Focus on Lowering Your Debt-to-Income Ratio

Your debt-to-income ratio (DTI) is one of the key factors lenders evaluate when determining how much home you qualify for.

Paying down:

• Credit cards
• Auto loans
• Student loans
• Personal debt

can improve your purchasing power and strengthen your loan application.

For many buyers, paying down debt before applying for a mortgage can absolutely strengthen their financial profile — but every situation is different. In some cases, if your debt-to-income ratio (DTI) is already within a healthy range, it may actually make more sense to keep additional cash available for your down payment, reserves, or closing costs rather than aggressively paying off low-interest debt.

This is something I learned personally when my husband and I purchased our first home — long before I became a realtor. At the time, I assumed the smartest thing to do was eliminate as much debt as possible before applying for a loan, so I used a large portion of our savings to pay off my car. What I didn’t realize then was that our DTI ratio was already well within lending guidelines. Those funds could have potentially been better utilized toward a larger down payment, stronger reserves, or even securing more favorable loan terms.

Thankfully, we were still able to move forward with our home purchase, but that experience taught me how important it is to have the right professionals guiding you early in the process. Real estate and mortgage planning are not one-size-fits-all, and what feels financially responsible isn’t always the strategy that best positions you for homeownership.

That’s why I always encourage buyers to speak with a trusted lender before making major financial decisions during the home-buying process. A knowledgeable loan officer can review your full financial picture and help you make informed decisions based on your specific goals, finances, and long-term plans — not just general advice you may read online.

6. Keep Your Finances Consistent

Mortgage lenders typically review several months of financial statements during underwriting.

Large cash deposits, excessive account transfers, or inconsistent income documentation may require additional explanations and paperwork.

Before applying for a home loan, try to:

• Keep banking activity straightforward
• Maintain stable income
• Avoid unnecessary financial movement between accounts
• Document any large deposits clearly

Clean financial records help the approval process move more efficiently.

7. Maintain Stable Employment

Lenders like to see consistency in employment history and income.

If possible, avoid:

• Switching industries
• Moving from salaried to commission-only income
• Frequent job changes during the loan process

That doesn’t mean career changes automatically prevent homeownership, but it’s important to discuss major employment transitions with your lender before making changes.

8. Prepare for More Than Just the Mortgage Payment

Many buyers focus solely on the monthly mortgage amount and forget about the real-world costs that come with owning a home.

Depending on the property, buyers may also need to budget for:

• Repairs and maintenance
• Snow removal or landscaping
• Utilities
• HOA assessments
• Furnishings and appliances
• Seasonal maintenance costs

As someone who works extensively in the Colorado mountain market, I always encourage buyers to think beyond closing day and prepare for the full cost of ownership.

9. Work With Trusted Professionals Early

One of the best things buyers can do is build their team early.

Speaking with a knowledgeable lender before house hunting helps buyers:

• Understand financing options
• Establish realistic price ranges
• Identify opportunities to improve qualification
• Prepare documentation ahead of time

Working with an experienced real estate professional early in the process also helps buyers better understand local market conditions, timelines, negotiation strategies, and neighborhood dynamics.

10. Preparation Creates Opportunity

In competitive real estate markets, prepared buyers often have the advantage.

When the right home becomes available, financially prepared buyers are able to:

• Move quickly
• Submit stronger offers
• Navigate underwriting with fewer surprises
• Reduce stress throughout the process

The earlier you begin preparing, the more confident and successful your home-buying experience is likely to be.

---

Thinking About Buying a Home in Colorado?

Whether you’re purchasing your first home, a mountain property, vacation home, or investment property, preparation matters.

Kelly Gafa works with buyers throughout Colorado including Breckenridge, Silverthorne, Frisco, Dillon, Keystone, Copper Mountain and surrounding counties including Park County, Lake County, and Grand County, to help them navigate the real estate process with clarity, strategy, and confidence.

If you’re considering buying a home and want guidance on financing preparation, local market conditions, or next steps, reach out anytime.

For many buyers, investing in real estate feels out of reach because they assume qualifying for an investment property loan works the same way as buying a primary home.

Traditionally, lenders look closely at your personal income, tax returns, debt-to-income ratio, employment history, and overall financial picture before deciding how much you qualify for. If your finances aren’t perfectly aligned, it can sometimes feel like the conversation stops there.

But there’s another financing option that works differently — and for many real estate investors, it can be a game changer.

It’s called a DSCR loan, short for Debt Service Coverage Ratio.

Instead of focusing primarily on your personal income, a DSCR loan focuses on the income potential of the property itself. More specifically, lenders evaluate how much rental income the property could generate and whether that income is enough to support the mortgage payment.

For buyers considering a Summit County investment property, this type of financing is becoming increasingly popular.

How Does a DSCR Loan Work?

When a lender evaluates a DSCR loan, they’re asking one main question:

Can this property generate enough rental income to support the monthly mortgage payment?

The lender compares the projected monthly rent to the projected monthly housing payment, which typically includes principal, interest, taxes, insurance, and sometimes HOA dues.

Many lenders look for the property’s rental income to cover at least 75% of the monthly payment, although requirements vary depending on the lender and loan program. If the property fully covers the mortgage payment — even better.

Because the loan is tied more closely to the property’s cash flow rather than solely your personal income, DSCR loans can create opportunities for buyers who may not qualify through conventional financing alone.

Who Are DSCR Loans Best For?

Once buyers learn how DSCR loans work, they often realize this financing option fits their goals better than they expected.

A DSCR loan may be worth exploring if you:

• Want to purchase a rental property
• Already own a primary residence and don’t want your existing mortgage to heavily impact qualification
• Are self-employed or have income that’s harder to document traditionally
• Want to invest in a short-term rental or vacation property
• Are interested in building long-term wealth through real estate investing

The common thread is buyers who recognize the income potential of a property and want that potential to help support the purchase.

What Types of Properties Can Qualify?

Many DSCR loan programs offer financing options for:

• Single-family homes
• Condos and townhomes
• Duplexes, triplexes, and fourplexes
• Vacation homes
• Short-term rentals and Airbnb properties

In resort communities like Breckenridge, Frisco, Dillon, Keystone, and Silverthorne, short-term rental demand can make investment properties especially attractive to buyers looking for both personal enjoyment and income potential.

If you’ve been watching the Summit County real estate market and wondering whether owning an investment property could make sense for you, this may be a financing strategy worth exploring.

Important Financial Considerations

Like any investment, it’s important to go in with a realistic understanding of both the opportunities and responsibilities that come with owning rental property.

DSCR loan interest rates are often slightly higher than conventional mortgage rates, and most programs require a down payment starting around 20%. Buyers also typically need a solid credit profile and financial reserves.

It’s also important to remember that the mortgage payment is only one part of the equation. Maintenance costs, HOA dues, insurance, utilities, property management, and vacancy periods can all impact profitability.

Most experienced real estate investors will tell you the same thing: having a financial cushion and planning for unexpected expenses is part of owning investment property responsibly.

That doesn’t mean investing in real estate isn’t worthwhile — it simply means understanding the full picture before making a decision.

Is a DSCR Loan Worth Exploring?

If you’ve been considering buying a rental property, vacation home, or investment property in Summit County but assumed qualifying would be difficult, a DSCR loan may open more doors than you realized.

For many buyers, it creates a more flexible and approachable path into real estate investing by allowing the property’s rental income potential to play a larger role in the approval process.

If you have questions about buying investment property in Summit County, exploring vacation rental opportunities, or understanding financing options available in today’s market, I’d be happy to help connect you with trusted local lending resources and walk you through the process.

If you have been considering purchasing a second home or investment property in Summit County, you may have heard that financing these properties typically comes with higher interest rates and additional pricing adjustments compared to a primary residence.

That landscape is evolving.

There are now lending programs designed specifically to create more competitive options for second homes and investment properties — offering improved pricing flexibility while maintaining a streamlined approval process for qualified buyers.

As your local real estate resource, I want to make sure you are aware of these changes and how they may impact your buying power.

---

Who These Programs May Benefit

Certain financing programs are particularly competitive for:

• Buyers purchasing a second or vacation home
• Real estate investors expanding their portfolio
• Owners looking to refinance an existing second home or investment property to improve their rate

Whether you are actively shopping or simply reviewing your long-term investment strategy, it is worth understanding what options are currently available.

---

Potential Relief from Additional Pricing Adjustments

Traditionally, second homes and investment properties have carried added pricing adjustments that increase overall borrowing costs.

Depending on the loan structure and borrower qualifications, some newer programs may reduce the impact of those adjustments. Every scenario is different, which is why reviewing the details with a knowledgeable lender is essential.

---

Flexible Loan Amounts

These programs often accommodate both conforming and jumbo loan amounts, allowing flexibility across a wide range of purchase prices — particularly important in higher-priced mountain markets like Summit County, Colorado.

---

Why Staying Connected with a Local Lender Matters

Financing options shift frequently based on market conditions, regulatory changes, and investor appetite. What was true six months ago may not reflect today’s opportunities.

Working with a trusted local lender offers several advantages:

• Accurate guidance tailored to Summit County property types
• Insight into condo, HOA, and short-term rental nuances
• Clear communication between lender, agent, and client
• Faster, more coordinated closings

As your Realtor, my role is to ensure you are not only finding the right property, but also positioned with the right financing strategy to support your long-term goals.

---

Let’s Review Your Options

If you are considering purchasing or refinancing a second home or investment property, I encourage you to stay proactive. Even if you are in the early planning stages, understanding today’s lending landscape can help you make confident, informed decisions.

If you would like to explore current financing options or be connected with a trusted local lender, reach out. I am happy to start the conversation and help you evaluate what makes the most sense for your situation.

Many Colorado homeowners are opening their assessment notices and asking the same question: How can my property taxes be going up when my home value hasn’t changed much at all?

For 2026, the answer has far less to do with market appreciation and far more to do with state-level tax policy changes that are now fully taking effect.

According to a 2024 report from the Common Sense Institute of Colorado, most homeowners across the state should expect property tax bills to rise by roughly 20–25% in 2026, even if home prices have remained relatively flat. Here’s why.

---

1. Pandemic-Era Tax Relief Is Expiring

During the years immediately following the pandemic, Colorado lawmakers enacted temporary property tax relief measures to cushion homeowners from rapid increases in assessed values.

For the 2024 tax year, homeowners benefited from:

• A temporarily reduced residential assessment rate of approximately 5.7%, and
• A $55,000 subtraction from the taxable value of primary residences.

These measures helped suppress tax bills at a time when property values were rising quickly. However, they were never intended to be permanent.

As of the 2025 tax year (payable in 2026), those temporary discounts have expired.

---

2. A New, Higher Permanent Assessment Rate Structure

Following the repeal of the Gallagher Amendment in 2020, Colorado lost the mechanism that historically kept residential assessment rates artificially low. Since then, lawmakers have been working to rebalance the system.

A bipartisan agreement negotiated during a 2023 special legislative session — and finalized through Senate Bill 24‑233 and House Bill 24‑1001 — created a new split-rate assessment structure:

2025 Assessment Rates (Payable in 2026)

• 7.05% for school district taxes
• 6.25% for local government taxes

This structure replaces the lower, temporary 2024 rate and represents a meaningful increase in the portion of your home’s value that is subject to taxation.

Even if your home’s market value has not increased, the taxable percentage of that value has.

---

3. Why a 25% Increase Is Common — Even With Flat Prices

Property taxes are calculated using three primary components:

1. Market value of the property
2. Assessment rate (set by the state)
3. Mill levies (set by local taxing authorities)

While home price growth has slowed significantly across much of Colorado — especially in mountain and resort communities — the assessment rate jump alone is enough to drive substantial increases.

For many homeowners, moving from a ~5.7% temporary rate in 2024 to a blended effective rate closer to 6.25–7.05% translates to a 20–25% higher tax bill, before any mill levy changes are factored in.

This is why homeowners are seeing higher taxes despite relatively stagnant home values.

---

4. Local Factors Can Push Bills Even Higher

In addition to state-level changes, local dynamics can amplify the increase:

• School district mill levies often account for the largest portion of property tax bills, and many districts have approved bonds or overrides.
• Overlapping taxing districts (county, town, fire, recreation, special districts) mean tax bills can vary significantly from one neighborhood to the next.
• In mountain communities like Summit County, assessed values remain high even when price growth cools, compounding the effect of higher rates.

As a result, two homes with similar values can see very different tax outcomes depending on location.

---

5. What About 2026 Assessment Rates?

Looking ahead to the 2026 tax year, the residential assessment rate for the local government portion is expected to rise to 6.8%.

However, House Bill 24‑1001 introduces a new mitigation tool:

• Homeowners will subtract approximately 10% of their home’s value, up to $70,000, before applying the assessment rate.

With this subtraction, the effective assessment rate for many average-priced homes is projected to be closer to 6.4%, slightly reducing the impact — but still well above the temporary pandemic-era rate.

---

6. Historical Context Matters

Even with these increases, Colorado’s property taxes remain low compared to much of the country:

• Colorado average effective rate: ~0.49%
• National average: ~0.90%

That said, homeowners who became accustomed to years of declining or flat assessment rates under Gallagher are now experiencing a structural reset — and that adjustment feels abrupt.

---

Bottom Line

If you are facing a 25% increase in property taxes in 2026, it is not because your home suddenly became more valuable.

It is primarily the result of:

• The expiration of temporary pandemic-era tax relief
• The implementation of higher permanent assessment rates
• School district and local mill levy impacts
• Long-term policy shifts following the repeal of the Gallagher Amendment

Understanding these changes is essential — especially for homeowners budgeting long-term or considering a future move.

If you have questions about how property taxes affect your home’s overall cost of ownership, or how these changes may influence future market dynamics, I’m always happy to be a resource.