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in Truckee, CA
Truckee's vacation rental market creates a clear split in how you'll finance property here. Conventional loans dominate primary residence purchases while DSCR loans serve the investor crowd buying short-term rental cabins.
The loan you need depends entirely on how you'll use the property. Living in it full-time? Conventional wins on rate and cost. Renting it out on Airbnb? DSCR approval looks only at rental income, not your W-2.
Conventional loans give you the lowest rate available if you're buying a primary residence or qualified second home in Truckee. You'll need documented income, 620+ credit, and debt-to-income ratios under 50%.
These loans cap at $766,550 in Nevada County, which covers most Truckee properties outside luxury estates. Rates currently sit 1-2% lower than investor products, saving you hundreds monthly on a $600K cabin.
DSCR loans let you buy Truckee rental properties without showing personal income. The lender calculates the property's monthly rental income divided by the mortgage payment—that ratio determines approval.
Most lenders want a 1.0 DSCR minimum, meaning rent covers the full payment. Some go down to 0.75 if you put more down. Expect 20-25% down, no income verification, and approval in days instead of weeks.
The rate gap matters more on larger loans. On a $500K mortgage, that 1.5% difference costs you about $400/month. But if you're self-employed or carry complex income, DSCR approval happens while conventional underwriting is still requesting documents.
Conventional loans require full income verification and hit your DTI ratios. DSCR loans ignore your income entirely—you could make $50K or $500K, doesn't matter. The property's rental performance is the only metric that counts.
Choose conventional if you're moving to Truckee full-time or buying a true second home you'll use personally. The rate savings compound over 30 years, and qualification is straightforward if you're W-2 employed.
Pick DSCR if you're buying purely for rental income, especially short-term vacation rentals. The higher rate is offset by not tying up your income ratios, and you can scale a rental portfolio without hitting conventional loan limits.
No. DSCR loans require the property to be investment-only. If you plan any personal use, you need a conventional second home loan with 10% down minimum.
Lenders use market rent from a broker's opinion or appraisal comparables. Existing leases work if in place. Short-term rental projections need solid comparable data.
Conventional maxes at $766,550 conforming. DSCR loans go higher but rates increase above that threshold. Both can finance properties over the limit as jumbos.
Yes, through refinancing. If you move into the property as primary residence, you can refi to conventional and capture a lower rate after 12 months.
DSCR loans typically close in 14-21 days since there's no income verification. Conventional takes 21-30 days due to employment and income documentation requirements.