Mammoth Lakes Mortgage FAQs: Resort Property Financing Answers From Local Brokers

Conventional second home loans require 680 minimum for vacation properties. Investment properties with rental income need 620-640 depending on the loan program and down payment size.

Yes, but documentation requirements vary by loan type. DSCR loans use projected rental income without verifying personal income, while conventional loans require lease agreements and rental history.

Second homes require 10% down minimum with excellent credit. Most lenders want 15-20% for mountain resort properties due to seasonal market volatility and higher risk profiles.

Jumbo loans in resort markets typically require 20-25% down and 700+ credit scores. Lenders scrutinize cash reserves more carefully for vacation properties than primary residences in urban areas.

Bank statement loans and DSCR loans count Airbnb income directly from deposits. Conventional loans require two years of tax returns showing rental income, which rules out new short-term rental operators.

Second homes require you to occupy the property occasionally and not rent it full-time. Investment property loans allow continuous rentals but require larger down payments and higher interest rates.

Bank statement loans work well for self-employed borrowers buying vacation or rental properties. We analyze 12-24 months of deposits instead of tax returns, which typically show lower reported income.

Bring two years tax returns, two months bank statements, pay stubs, and credit authorization. Vacation property purchases also require proof of primary residence mortgage or lease if you currently rent elsewhere.

Standard purchases close in 30-40 days with complete documentation. DSCR and bank statement loans often close faster since they skip employment verification and focus only on property cash flow.

FHA loans only work for primary residences, not vacation homes. If you're relocating permanently to Mammoth and working locally, FHA allows 3.5% down with 580 credit score minimum.

Expect 2-5% of purchase price covering lender fees, title insurance, escrow, and property taxes. Mountain properties often have higher title insurance costs due to complex ownership histories and easement issues.

Put 20% down to skip PMI on conventional second home loans. Some borrowers choose piggyback loans with 10% down plus a second mortgage to avoid PMI while preserving cash.

VA loans require you to occupy the home as your primary residence. If you're a veteran relocating to Mammoth for work, VA loans offer zero down financing with competitive rates.

DSCR loans excel for condos generating rental income since they ignore HOA restrictions on rentals. Conventional loans often hit roadblocks when condo associations limit short-term rentals heavily.

Vacation home rates run 0.25-0.75% higher than primary residence rates. Investment properties with rental income add another 0.5-1% due to perceived higher default risk in resort markets.

Cash-out refinances work on vacation and investment properties with 25-30% equity remaining after the loan. Lenders cap investment property cash-out at 75% loan-to-value regardless of credit score.

Asset depletion loans use investment accounts to qualify you based on total assets divided by loan term. Bank statement loans work if you have consistent deposits from business or 1099 income.

Construction-to-permanent loans finance land purchase and building in one loan. Expect 20-25% down and detailed builder contracts, with funds disbursed in draws as construction milestones get completed.

Appraisers use comparable sales within similar elevation zones and ski access levels. Properties near lifts or with ski-in access appraise higher per square foot than town-center condos.

Foreign national loans allow non-US citizens to purchase vacation or investment properties. Expect 30-40% down payment requirements and higher rates since lenders can't verify international credit history.

Investment properties require 15-25% down depending on credit score and loan type. DSCR loans focusing purely on rental income often allow lower down payments than conventional investor loans.

Expect 6-12 months reserves covering mortgage, taxes, insurance, and HOA fees. Lenders view seasonal resort markets as higher risk and want proof you can cover payments during rental income gaps.

Lenders add monthly HOA dues to your debt-to-income ratio calculation. High HOA fees in full-service condo buildings can reduce your maximum loan amount by affecting overall monthly payment capacity.

FHA 203k loans work for primary residences needing repairs. For vacation properties, hard money or bridge loans provide short-term financing during renovations before refinancing to conventional loans.

DSCR loans approve you based solely on rental income covering the mortgage payment. They work perfectly for investors buying Mammoth rentals who have strong property income but complex personal tax returns.

ARMs offer lower initial rates if you plan to sell within 5-7 years. Many Mammoth vacation home buyers use ARMs since they upgrade properties or shift investment strategies before rates adjust.

Appraisers struggle finding comparables for high-end homes with unique features or ski access. Jumbo loans on luxury properties often require two appraisals to confirm value and satisfy lender requirements.

HELOCs provide down payment funds if you have equity in another property. This strategy preserves mortgage rates and terms while accessing cash without selling investments or retirement accounts.

Portfolio loans from small lenders let you finance 5-10+ properties without hitting Fannie Mae limits. DSCR loans also work well since each property qualifies independently based on rental income alone.

Interest-only payments reduce monthly costs if you're maximizing rental income or waiting for appreciation. After the interest-only period ends, payments increase significantly when principal amortization starts.

Bridge loans and hard money close in 7-14 days using property value as primary underwriting. These work when you need to compete with cash buyers or when traditional financing takes too long.

Bank statement and asset-based loans focus on current financial strength rather than credit history. Most programs require 2-3 years distance from bankruptcies or foreclosures depending on loan type.

Conventional loans count 75% of documented rental income from other properties. DSCR loans evaluate each property independently, so strong rental performance on existing holdings doesn't affect new purchase qualifications.

Rate locks typically last 30-60 days, so lock once you're in escrow. If rates drop significantly during your search, we can relock or switch lenders since you're not committed until loan docs are signed.

You can negotiate price reductions, increase your down payment, or cancel using the appraisal contingency. Resort properties with unique features sometimes require second appraisals or additional comparable sales research.