Question 1

Can I use a home equity loan on my Tahoe vacation home?

Accepted Answer

Yes, but expect rates 0.5-1% higher than primary residences. Lenders also cap combined loan-to-value lower, often at 80% versus 85% for primary homes.

Question 2

How much equity do I need to qualify?

Accepted Answer

Most lenders require 15-20% equity to remain after the loan closes. If your home is worth $800k with a $500k mortgage, you could borrow around $140k-$180k.

Question 3

Do I need an appraisal for a home equity loan in South Lake Tahoe?

Accepted Answer

Yes, full appraisals are standard. Desktop valuations rarely work in Tahoe due to unique property features and seasonal sales volatility.

Question 4

How does wildfire risk affect my home equity loan approval?

Accepted Answer

Lenders require proof of adequate fire insurance. High-risk zones may face coverage gaps that block approval until you secure specialized policies.

Question 5

Can Airbnb income help me qualify for a larger loan?

Accepted Answer

Only with two years of documented rental history. Lenders discount short-term rental income by 25-50% depending on your tax returns and booking consistency.

Question 6

What's the difference between a home equity loan and a HELOC?

Accepted Answer

Home equity loans give you a lump sum at closing with a fixed rate. HELOCs work like credit cards with variable rates and a draw period.

Home Equity Loans in South Lake Tahoe: Tap Your Mountain Property's Value