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South Lake Tahoe is a short-term rental market. Investors here are buying cabins, condos, and vacation homes — then renting them on Airbnb and VRBO.
That income stream is real, but traditional lenders don't like it. You need investor-specific financing built for this type of deal.
620
Min Credit Score
20-25%
Min Down Payment
1.0x
Min DSCR
21-30 Days
Typical Close Time
Varies by Profile
Rate Type
Investor Loans in South Lake Tahoe
Most investor loans in Tahoe run on DSCR — Debt Service Coverage Ratio. That means the property's rental income must cover the monthly payment.
Lenders typically want a DSCR of 1.0 or higher. Credit score minimums usually start at 620, with better pricing above 700.
Local decision guide
Use this guide to connect investor loans eligibility, lender expectations, and local market factors before comparing payment options in South Lake Tahoe.
South Lake Tahoe is a short-term rental market. Investors here are buying cabins, condos, and vacation homes — then renting them on Airbnb and VRBO.
That income stream is real, but traditional lenders don't like it. You need investor-specific financing built for this type of deal.
Most investor loans in Tahoe run on DSCR — Debt Service Coverage Ratio. That means the property's rental income must cover the monthly payment.
Most banks won't touch short-term rental properties in Tahoe. Their automated systems flag vacation markets as high risk.
Wholesale lenders that specialize in non-QM and DSCR deals are a different story. We work with 200+ of them — several actively price Tahoe deals competitively.
The biggest mistake I see Tahoe investors make: shopping rates at their local bank. Those lenders don't understand STR income.
DSCR lenders will use projected or actual short-term rental income to underwrite. That unlocks deals that would otherwise get killed at step one.
Conventional investor loans cap at 10 financed properties and require full income docs. DSCR loans skip your tax returns entirely.
Hard money moves faster — sometimes closing in 7-10 days. That speed costs you in rate, but it wins deals in competitive Tahoe inventory.
El Dorado County has STR permit regulations. Check permit availability before you write an offer — some neighborhoods have moratoriums.
HOA restrictions on short-term rentals are common in Tahoe condo complexes. A DSCR lender will want confirmation the property can legally be rented.
Yes. Many DSCR lenders accept STR income using AirDNA data or your actual rental history. Lender policies vary.
Not always, but DSCR lenders will need confidence the property can generate rental income. Permit status matters at closing.
Expect 20-25% down for most DSCR and non-QM investor loans. Hard money lenders may require more.
DSCR loans typically close in 21-30 days. Hard money can close in under two weeks for qualified borrowers.
Most DSCR lenders start at 620. You'll get meaningfully better pricing at 700 and above.
No. DSCR loans are for investment properties only. Any personal use makes it a second home loan — different program entirely.