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Big Bear Lake runs on short-term rentals. DSCR loans ignore your W-2 income and qualify you based solely on what the property generates in rent.
Most vacation rental investors here use DSCR financing because traditional lenders reject short-term rental income. Your ski lodge doesn't care about your tax returns.
DSCR Loans in Big Bear Lake
You need a DSCR of 1.0 or higher—meaning monthly rent covers the mortgage payment. Most Big Bear properties hit 1.25 to 1.5 during peak season.
Expect 20-25% down minimums. Credit scores start at 620, but rates improve significantly above 700. No income documentation required.
Local decision guide
Use this guide to connect dscr loans eligibility, lender expectations, and local market factors before comparing payment options in Big Bear Lake.
Big Bear Lake runs on short-term rentals. DSCR loans ignore your W-2 income and qualify you based solely on what the property generates in rent.
Most vacation rental investors here use DSCR financing because traditional lenders reject short-term rental income. Your ski lodge doesn't care about your tax returns.
You need a DSCR of 1.0 or higher—meaning monthly rent covers the mortgage payment. Most Big Bear properties hit 1.25 to 1.5 during peak season.
DSCR lenders run rental comps differently than conventional banks. They pull Airbnb data and seasonal occupancy rates—critical for mountain markets.
Not all DSCR lenders accept short-term rental income. We work with the ones who understand Big Bear's vacation rental model and won't kill your deal.
Big Bear appraisers use actual rental comps, not just list prices. If your property can't document $3,500+ monthly average, the DSCR won't work.
Winter cabins with no summer bookings struggle to hit 1.0 DSCR. Lenders average income across 12 months, so seasonal gaps hurt your ratio hard.
Bank statement loans require 12-24 months of deposits. DSCR loans skip your financials entirely and focus on the property's rental potential.
Hard money works for quick flips but costs 9-12%. DSCR rates run 7-8.5% for long-term holds with much better terms and lower payments.
Big Bear Lake's vacation rental ordinance requires permits. Lenders want proof of active rental license before funding—no permit means no loan.
Properties near Snow Summit or Bear Mountain appraise higher and hit DSCR targets easier. Lake-view cabins command premium rents that satisfy ratio requirements.
Most lenders require 12 months of actual rental history or use appraiser rental comps. New purchases rely on market rent analysis, not your projections.
Yes, up to 75% LTV on cash-out refinances. You need 12 months of ownership and the property must still hit minimum DSCR after the new loan.
Some lenders go to 0.75 DSCR with larger down payments and higher rates. Below that, you'll need co-borrower income or a different loan product.
Rates run 0.25-0.5% higher for STRs versus long-term rentals. Lenders price in the income volatility and management complexity of vacation properties.
Most lenders cap at 10 financed properties total. Each new loan gets underwritten independently based on that property's DSCR and your credit profile.