Truckee Mortgage FAQs: Your Questions Answered by Local Experts

Lenders view Truckee as a resort market with second-home concentration and vacation rental complications. Many properties require jumbo financing, and you'll need reserves to cover seasonal income gaps.

Most lenders require 10% down minimum for second homes. If you're planning to rent it out short-term, expect 15-25% down depending on the loan program.

Not for purchase financing on second homes. Lenders won't count projected rental income until you have a two-year history of managing similar properties.

Conventional loans start at 620, but jumbo lenders typically want 680-700 minimum. Second home buyers should target 720+ for competitive rates.

Yes, if it's your primary residence. FHA caps out at $498,257 in Nevada County, which limits options in Truckee's market.

Jumbo loans cover amounts above $766,550 with stricter requirements. You'll need stronger credit, more reserves, and lower debt ratios than conventional limits allow.

Not usually. Most portfolio and investor loan programs require 25% down minimum for vacation rental markets.

Two years of tax returns typically, but we have bank statement programs that use 12-24 months of deposits instead. Works better for seasonal income patterns.

Most require a DSCR loan that qualifies based on rental cash flow, not your personal income. You need the property to cover its own mortgage payment.

DSCR loans qualify you based on rental income, not tax returns or W-2s. Perfect for buyers with multiple rentals or complex income who want a Tahoe investment.

Construction loans and renovation mortgages work here, but draw schedules get tricky in winter. Plan your timeline around mountain weather and contractor availability.

Yes, if it's your primary residence. VA loans have no down payment requirement and the Nevada County limit is $766,550.

Plan for 2-5% of purchase price. Jumbo loans and investment properties trend toward the higher end of that range.

30-45 days if everything's clean. Mountain appraisals can add time, and winter weather sometimes delays inspections or final walkthroughs.

Yes. We have foreign national programs requiring 30-40% down with no US credit history needed.

ARMs offer lower initial rates that adjust after 3, 5, or 7 years. Makes sense if you plan to sell or refinance before adjustment.

You pay only interest for 10 years, then it converts to principal and interest. Helps cash flow if you're covering two mortgages.

Private mortgage insurance costs 0.3-1.5% annually when you put down less than 20%. Avoid it by hitting 20% down or using piggyback financing.

Yes. These programs use 12-24 months of business deposits instead of tax returns—ideal for self-employed borrowers who write off heavily.

Reserves are liquid assets covering future mortgage payments. Second homes typically need 6 months, investment properties 6-12 months depending on the lender.

Limited comparable sales and seasonal pricing swings make appraisals trickier here. Appraisers often pull comps from a wider radius than urban markets.

Bridge loans let you buy before selling your current home. Useful in competitive Truckee summers when you can't wait for your old place to close.

Usually yes, within IRS limits. Talk to your CPA about qualified residence rules if you rent it out part-time.

FHA allows 3.5% down with 580 credit but charges mortgage insurance for life. Conventional needs 5-20% down, better credit, and PMI drops at 20% equity.

Depends on the property location. Some areas near the Truckee River require it, and lenders won't close without the policy in place.

P&L loans use CPA-prepared statements instead of tax returns. Less common than bank statement programs but viable for established businesses.

These qualify you using investment accounts and assets instead of income. Divide your assets by 360 months to create qualifying income—works for early retirees.

Yes. ITIN loan programs exist for non-citizens with US work authorization or established credit history here.

Most programs cap at 43-50% DTI. Jumbo loans and second homes often require under 43% depending on credit strength and reserves.

Only if you're keeping the loan 5+ years. Each point costs 1% upfront and typically drops your rate 0.25%. Do the breakeven math first.

You negotiate the price down, bring extra cash to close, or walk if you have an appraisal contingency. Low appraisals happen here when comps are scarce.

Most programs allow refinancing after 6 months of payments. Rate-and-term refis are easier than cash-out, which may require 12 months seasoning.

Portfolio ARMs are held by individual lenders with flexible terms. They work for complex income situations or properties that don't fit agency guidelines.

Yes for primary and second homes. Investment properties typically require your own funds, though some portfolio lenders allow gifts on larger down payments.

Hard money is short-term financing based on property value, not credit. Use it for quick purchases or major renovations before refinancing to permanent financing.

Fifteen-year loans build equity faster with lower rates but higher payments. Choose based on cash flow needs and whether this is a primary or vacation home.

Bring two years tax returns, 60 days of bank statements, pay stubs, and ID. Self-employed borrowers add business bank statements and profit-loss statements.

Rates vary by borrower profile and market conditions. Second homes and investment properties typically cost 0.25-0.75% more than primary residence rates.