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South Lake Tahoe runs on seasonal money. Vacation rentals, short-term income, and investment properties dominate the local market.
Interest-only loans fit that pattern well. Lower initial payments give buyers flexibility when cash flow isn't steady month to month.
700+
Min Credit Score
20-30%
Down Payment
5-10 Years
IO Period
Non-QM
Loan Type
12 Months
Reserves Required
Interest-Only Loans in South Lake Tahoe
Interest-only loans are non-QM products. That means lenders set their own rules — and standards are stricter than conventional loans.
Most lenders want a 700+ credit score, 20-30% down, and solid reserves. Expect to show 12 months of liquid assets after closing.
Local decision guide
Use this guide to connect interest-only loans eligibility, lender expectations, and local market factors before comparing payment options in South Lake Tahoe.
South Lake Tahoe runs on seasonal money. Vacation rentals, short-term income, and investment properties dominate the local market.
Interest-only loans fit that pattern well. Lower initial payments give buyers flexibility when cash flow isn't steady month to month.
Interest-only loans are non-QM products. That means lenders set their own rules — and standards are stricter than conventional loans.
Your local bank won't offer this. Interest-only products live in the wholesale and portfolio lender world.
At SRK CAPITAL, we shop across 200+ wholesale lenders. That reach matters when you're chasing a niche product in a resort market.
IO loans work best when you have a plan. Investors buying Tahoe rentals use low payments to maximize early cash flow.
The risk is real when the IO period ends. Payments jump when you start paying principal — sometimes significantly. Know your exit before you sign.
A DSCR loan qualifies on rental income, not your personal income. For pure investment plays in Tahoe, that's often a cleaner fit.
ARMs share IO's lower-payment appeal but require principal paydown from day one. IO gives you more breathing room upfront.
El Dorado County includes mountain resort property. Lenders often apply stricter guidelines to vacation and non-primary homes.
Short-term rental regulations in South Lake Tahoe have tightened. Confirm rental income is viable before building a strategy around it.
Most IO loans have a 5 to 10 year interest-only window. After that, the loan recasts and you pay principal plus interest.
Some IO lenders allow rental income with proper documentation. A DSCR loan may be a stronger option if rental income is your primary qualifier.
Yes, but lenders apply tighter standards to second homes. Expect higher reserves and larger down payment requirements.
Payments increase because you begin paying principal. Many investors refinance or sell before that reset date.
Yes. These are non-QM products available through wholesale lenders. Not every lender offers them, so broker access matters.