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in Truckee, CA
Truckee attracts two very different buyers. Primary residents want conventional financing. Investors buying short-term rentals near Lake Tahoe need something else entirely.
DSCR loans qualify you on rental income — not your tax returns. That changes everything for investors who write off most of their income.
Conventional loans follow Fannie Mae and Freddie Mac guidelines. You need verifiable income, a solid debt-to-income ratio, and at least 620 credit.
Down payments start at 3% for primary homes. Second homes in Truckee typically require 10-20% down. No upfront mortgage insurance if you put 20% down.
DSCR loans skip personal income verification entirely. Lenders look at the property's rent-to-mortgage ratio instead. Most want a DSCR of 1.0 or higher.
A DSCR above 1.25 usually gets you better pricing. Self-employed investors and LLCs use these constantly in markets like Truckee where rental income is strong.
HousingWire flagged the 30-year fixed hitting 6.57% with applications dropping sharply — that rate environment hits conventional borrowers directly. DSCR pricing runs higher, but investors care more about cash flow math than rate comparisons.
Conventional loans have loan limits set by the FHFA. DSCR loans are portfolio products — limits vary by lender, and we shop across 200+ wholesale lenders to find the right fit.
Buying a primary or second home in Truckee? Conventional is almost always the right call. Lower rate, better terms, and you're not fighting investor-grade underwriting.
Buying a cabin to rent on Airbnb or VRBO? Run the DSCR numbers. If the property cashflows above 1.0, you can close in an LLC without touching your personal returns.
Yes. Most DSCR lenders accept projected or actual short-term rental income. Some use AirDNA data to support the income analysis.
Conventional requires 620 minimum. Most DSCR lenders want 680 or higher, and better scores mean better pricing.
Yes. DSCR loans allow LLC vesting. Conventional loans do not — they require the borrower to hold title personally.
Conventional rates are lower. DSCR carries a premium for the flexible income qualification. Rates vary by borrower profile and market conditions.
No. DSCR lenders qualify the property, not you. No tax returns, no W-2s, no personal income verification.
Conventional starts at 10-20% for second homes. DSCR loans typically require 20-25% down for investment properties.