Question 1

Can I use projected vacation rental income for DSCR loan approval in South Lake Tahoe?

Accepted Answer

Yes, lenders use market rent analysis from the appraisal to calculate DSCR. For vacation rentals, appraisers research comparable short-term rental rates in your area to project annual income.

Question 2

What DSCR ratio do I need for a South Lake Tahoe investment property?

Accepted Answer

Most lenders require 1.0 to 1.25 DSCR minimum. A 1.25 ratio means monthly rent covers 125% of your total housing payment including mortgage, taxes, insurance, and HOA fees.

Question 3

Do vacation rental restrictions affect my DSCR loan qualification?

Accepted Answer

Yes, lenders and appraisers consider local rental ordinances when projecting income. Properties in areas with rental caps or permit limits may show lower projected income, affecting your DSCR calculation.

Question 4

How much down payment do DSCR loans require for Tahoe properties?

Accepted Answer

Expect 15-25% down for most DSCR loans. Some lenders offer lower down payments with stronger DSCR ratios or higher interest rates. Larger down payments typically secure better terms.

Question 5

Can I use a DSCR loan for a second home in South Lake Tahoe?

Accepted Answer

DSCR loans are specifically for investment properties that generate rental income. For second homes you'll occupy personally, you'd need a traditional second home loan instead.

DSCR Loans for South Lake Tahoe Investment Properties | Rental Income Qualification