The Quick Read: On most files the network places, you can borrow up to 80% of the price on a purchase of up to $1,000,000 and 75% above that, but a ski rental’s rent used for lender review, counted at 80% of gross, often sets a lower ceiling than leverage does, all subject to underwriting. Your maximum is whichever of three limits is lowest: the leverage cap, the loan size your rent can carry, or the program’s maximum. On ski properties, the rent limit is usually the one that binds.
- Short-term-rental (STR) files run to $2,000,000 and need coverage of 1.00 or higher, with income counted at 80% of gross.
- Leverage steps down as the loan grows, with the highest leverage on smaller purchases and lower leverage at the top of the ladder.
- Taxes, insurance and HOA dues count against the rent, so heavy resort dues shrink the loan your rent can carry.
- Seasonal income, local permits and HOA rules can each cut the loan below what the price suggests.
Key Terms Defined
DSCR (debt service coverage ratio): The property’s qualifying monthly income divided by its full monthly obligation. A result of 1.00 means income exactly covers the payment.
PITIA: Principal, interest, taxes, insurance and association (HOA) dues. It is the full monthly cost the rent must cover.
LTV (loan-to-value): The loan balance as a percentage of the purchase price or appraised value.
Haircut: The share of gross rent a lender leaves out of qualifying income. On short-term rentals, the network programs count 80% of gross.
Trailing 12-month (TTM) income: Twelve months of actual rental operating history, used on a refinance.
Non-warrantable condo: A condo building that falls outside standard agency project rules, often because of rental pools, heavy investor ownership or hotel-style management.
Condotel: A condo unit in a building run like a hotel, with a front desk and a rental program.
DSCR Calculator
Run the numbers in your market
Rate source: Freddie Mac 30-yr average via FRED® — Federal Reserve Bank of St. Louis · effective Oct 15, 2026
Prefilled with starting assumptions — enter your own rent or nightly figures, taxes, insurance, and HOA for a more accurate picture.
Program parameters update from Lendmire’s centralized guideline source. Taxes and insurance are editable estimates.
As of Oct 15, 2026 · General Freddie Mac market benchmark, not a Lendmire loan offer. Rent, nightly rate, occupancy, taxes, and insurance are editable estimates. Short-term rental figures are estimates only and vary significantly by season, property type, management approach, and local short-term-rental rules — confirm local regulations before relying on them. Qualifying income for short-term rentals varies by program — some use appraisal market rent, others use documented STR history or projections — and is confirmed in underwriting. Not a Loan Estimate, approval, or commitment to lend. Program availability and eligibility are subject to lender guidelines, credit approval, property review, and underwriting.
What Sets Your Maximum Loan?
Your maximum loan is the lowest of three numbers: the leverage cap on price or value, the loan size at which rent used for lender review still covers the full payment, and the program ceiling. Lenders in the network test all three, and the smallest one wins. On ski properties the middle test usually decides it.
Here is how the limits line up on investment property. Every figure is a ceiling through select wholesale programs, subject to underwriting.
| Limit | What drives it | When it binds on a ski rental |
|---|---|---|
| Leverage cap | Balance size and transaction type | Higher-priced chalets, where the cap steps down |
| Rent coverage | 80% of gross STR income vs. PITIA | Condos with heavy HOA dues, or short seasons |
| Program ceiling | $2,000,000 on STR files | Luxury chalets above that size |
| Reserves | 6 months of PITIA, 12 for first-time investors | Thin cash after the down payment |
The leverage ladder is easy to state. On a purchase, 80% is available up to $1,000,000 with credit of 660 or higher. From $1,000,000 to $3,000,000, purchases top out around 75%, and credit expectations rise from 700 to 720. Past $3,000,000, purchase leverage drops to 65%, and some larger requests may be reviewed at a lower level. Above $4,000,000, every request is reviewed case by case before submission.
Cash-out follows a steeper ladder. It runs 75% to $1,000,000 on standard rentals and steps down as the balance grows. Proceeds are unlimited at or below 60% LTV and capped at $1,500,000 above that. There is no cash-out above $3,000,000. Final terms depend on the lender’s guidelines, the property type, and the borrower’s complete credit picture.
Most ski-town STR loans land in the first two bands, because STR files stop at $2,000,000. Above that size, the property is usually reviewed on long-term rent instead. That is a different test with a different result.
How Do Lenders Count Ski-Town Income?
Lenders count a share of what the property earns, not what it might earn in a perfect winter. On a refinance, the income is twelve months of operating history. On a purchase, it is the appraisal’s short-term-rent analysis. Either way, the network programs count 80% of gross.
That 80% factor is the haircut. It is a built-in discount for vacancy, turnover and management costs that gross revenue ignores. A ski unit that grosses a strong amount still qualifies at four-fifths of it.
The appraisal needs a closer look. McKissock explains that Form 1007 estimates monthly market rent for a one-unit property and that the lender, not the appraiser, makes the final call on income. Form 1025 plays the same role for two to four units. Both forms were built around long-term leases.
That matters because a long-term rent figure on a ski unit can sit well below what nightly rentals produce. It adds that leaning on the 1007 can produce artificially low coverage and recommends stress-testing for seasonality. This is why the network’s STR programs use the appraisal’s short-term-rent analysis on a purchase.
Seasonality is the next problem. Peak-season revenue should not be spread across all twelve months, and the worst quarters are worth testing on their own. Lenders do the same thing in practice. A trailing twelve months already contains your slow spring and fall, so it carries more weight than a projection.
Worked Example: Where the Ratio Decides the Loan
Run the numbers on a ski condo with a purchase price of $900,000. The inputs below are modeled assumptions, not market data.
Say gross short-term rent covers the full PITIA 1.25 times. The lender counts 80% of gross, so qualifying coverage is 1.25 × 0.80, or 1.00. That clears the 1.00 floor on STR files, with no room to spare.
Now change one input. Say gross rent covers PITIA only 1.20 times. Qualifying coverage becomes 1.20 × 0.80, or 0.96. The file falls just short of the STR floor, even though gross rent looks healthy.
You have several ways to fix that gap, and each one trades something away:
- Borrow less. A loan about 4% smaller on the interest and principal piece moves the ratio toward 1.00, though taxes, insurance and dues do not shrink with it.
- Put more down. This is the same fix as borrowing less, paid in cash.
- Add interest-only. On 30- and 40-year terms, select programs allow a 120-month interest-only period to 75%, qualified on interest, taxes, insurance and dues only.
- Review the file on long-term rent. Select lenders in the network will look at coverage below 1.00, but LTV and terms adjust, subject to underwriting.
The second scenario is the more common one in resort towns. Say the HOA raises dues and insurance climbs, pushing total obligation up 10%. The 1.25 gross coverage drops to about 1.14. After the haircut, qualifying coverage is about 0.91. A file that worked at the contract price no longer works at the same loan size.
What Moves the Number Most?
HOA dues, insurance, occupancy and the nightly price all move qualifying coverage. Because the haircut is fixed at 80% of gross, every change in revenue or obligation flows straight through to the ratio.
| Change | Effect on coverage | Effect on maximum loan |
|---|---|---|
| Higher HOA dues | Bigger obligation, lower ratio | Smaller loan before the floor binds |
| Higher insurance | Bigger obligation, lower ratio | Smaller loan |
| Weaker trailing income | Lower gross, lower rent used for lender review | Smaller loan |
| More down payment | Less loan against the same rent | Loan fits under the floor |
| Interest-only term | The file is reviewed on interest, taxes, insurance and dues, so the ratio rises | May lift the supportable loan, to 75% |
Dues and insurance are the sneaky ones. Principal and interest fall when the loan shrinks. Taxes, insurance and dues stay put. A resort condo with high dues can run into the rent test earlier than a cabin with low dues and a similar price.
Which Ski Properties Borrow More?
Single-family cabins and chalets usually borrow the most cleanly. Condos and condotels in resort cores add rules, and they carry lower caps. DSCR loans are designed for non-owner-occupied investment properties. Because they are business-purpose investor loans, they are reviewed differently from a standard owner-occupied mortgage.
Here is how the property types stack up through select wholesale programs, all subject to underwriting:
- Standard properties (1-4 units): the full ladder above applies.
- Warrantable condos: they follow the ladder.
- Non-warrantable condos: up to 75% and $1,500,000.
- Condotels: up to 75% on a purchase and 65% on a refinance, to $1,500,000, with cash-in-hand required.
- Rural property: up to 75% on five acres or less. Larger parcels carry lower loan caps.
Many ski-town condos sit in rental pools or hotel-style buildings. Agency loans often exclude those buildings, which is a common reason investors turn to DSCR financing. If your unit falls in that group, plan on the lower caps and a longer review.
Entity vesting is welcome, with no layered entities, per lender program requirements. Up to 20 financed properties can sit on the program.
DSCR vs. conventional financing
There are two common ways to finance an investment property, and they qualify you differently — here’s how investors weigh them.
Why investors choose it
- Qualifies on the property’s rental income — no personal tax returns, W-2s, or pay stubs needed to document income.
- No personal debt-to-income ceiling to clear, so existing mortgages and obligations don’t cap your borrowing the same way.
- Can be closed in an LLC, keeping the property inside a business entity.
- Built for scaling — not held to the limit on number of financed properties that conventional financing applies.
- Underwriting centers on the deal: generally qualifies when the rent covers the payment, a 1.00x coverage ratio being a common baseline (confirmed in underwriting).
- Designed specifically for investment property, including long-term and, where the program allows, short-term rentals.
Where it’s strong
- Often the lowest ongoing financing cost for a buyer who fully qualifies on personal income — a fit for a first property or a cost-first purchase.
Trade-offs for investors
- Requires full personal income documentation and must fit within a debt-to-income limit — salary, existing debts, and other mortgages all count.
- Typically held in your personal name rather than a business entity.
- Caps how many financed properties you can carry, which can become a ceiling as a portfolio grows.
- Evaluates you as a borrower as much as the property, which usually means more paperwork.
How investors usually choose: a first or single property often optimizes for the lowest financing cost; portfolio builders often optimize for leverage, vesting in an LLC, and scaling past conventional caps. The right answer depends on your goals, the property, and current guidelines — both paths run through select lenders in Lendmire’s wholesale network, with eligibility and terms confirmed in underwriting.
Can You Borrow on a Ski-Town Rental With a DSCR Loan If It Is New to You?
Yes, though the path depends on the transaction. On a purchase, the income comes from the appraisal’s short-term-rent analysis, since you have no history yet. On a refinance, it comes from twelve months of operating history. STR files are for experienced investors: twelve months of owning income property within the last thirty-six.
For a first-time investor, the practical answer is often a long-term-rent file, or a smaller STR loan once you have owned a rental for a year. First-time investors also need 12 months of reserves instead of 6. Lendmire’s piece How a Short-Term Rental Loan Works on a Ski-Town Property walks through the STR-specific steps in more detail.
Cash-out follows its own rules. If you own a seasoned ski rental and want to pull equity, the ceiling is lower than on a purchase. Cash-out cannot satisfy your reserve requirement, either. Tax treatment can depend on how the funds are used and how the property is held; investors should keep clear records and speak with a qualified tax professional before relying on any deduction. Leverage, reserves, and pricing vary by lender and program; the final terms follow the full file review.
Local Rules and HOA Limits Can Erase the Income
A loan can be sized on income the property is not allowed to earn. That risk is higher in resort towns, where permits, license caps and HOA restrictions are common.
Short-term rental rules can vary by city, county, HOA, and property type, so investors should confirm local rules before relying on projected rental income. Municipal permission has to be documented for the specific property. Nothing about a town or a state gets assumed.
Check the HOA’s rental policy and the building’s rental program before you write an offer. If the income vanishes, the STR numbers vanish with it. You would then be sized on long-term rent, which is a much smaller loan on most ski properties.
How Much Cash Should You Keep in Reserve?
Plan on six months of PITIA on the subject property, with twelve for first-time investors. Interest-only loans size reserves on interest, taxes, insurance and dues. The network does not add extra reserve requirements for your other financed properties. Terms vary by lender guidelines, property type, leverage, credit profile, and full file review.
Seasonal income makes reserves matter more than the ratio suggests. Ski rentals can have a heavy winter and a thin shoulder season. A cash cushion carries you through the slow months without pulling from other properties.
When Coverage Falls Short
A ratio below 1.00 does not end the conversation. Select lenders in the network will review coverage below 1.00, but LTV and terms adjust, subject to underwriting. Expect lower leverage and less favorable terms than a 1.00-plus file earns.
STR files themselves need 1.00 or higher. If your STR numbers fall short, the fallback is a long-term-rent review.
A DSCR loan is also not always the right tool. If you have strong personal income and a conforming-size loan, a conventional lender may offer cheaper financing. Conventional lenders review your file on personal debt-to-income instead of the property’s rent. The tradeoff is more paperwork and a cap on how many properties you can finance. The complete DSCR loans guide lays out the comparison.
Your Pre-Quote Checklist
Gather these before you ask for a quote. A complete file gets sized more accurately.
- The purchase contract, or the current value if you are refinancing.
- Twelve months of rental statements, if you own the unit.
- The HOA’s rental policy, current dues and insurance quote.
- Documentation of municipal permission for the specific property.
- Your credit profile and cash available for reserves.
- A list of other income properties you own, for the experience test.
Frequently Asked Questions
Do I need rental history to borrow on a ski-town rental?
Not on a purchase. The appraisal’s short-term-rent analysis supplies the income. On a refinance you need twelve months of operating history. STR files also require twelve months owning income property in the last thirty-six, subject to underwriting.
Does peak-season income count toward the loan?
Only as part of the average. Trailing twelve months includes your slow seasons, and the lender counts 80% of gross. A winter spike does not stand alone as qualifying income.
Can I borrow through an LLC?
Yes, subject to program terms. Entity vesting is welcome, though layered entities are not.
Why is my approved amount lower than 80% of the price?
Usually the rent test binds first. Counting 80% of gross against a payment that includes heavy dues and insurance can cap the loan below the leverage limit. Prices above $1,000,000 also step the leverage cap down to around 75%.
What is the largest ski-town loan I can get?
STR files run to $2,000,000. Above that, the property is reviewed on long-term rent, with leverage stepping down as the balance grows. Above $4,000,000, every request is reviewed case by case.
Next Step
If you are buying or refinancing a high-balance rental property and want to see how the numbers work, Lendmire can help you compare super jumbo DSCR loan options based on the property income, the loan balance, credit profile, leverage, and investor goals. Lendmire is a broker arranging business-purpose financing through select lenders in its wholesale network across 41 markets, including Washington, D.C. Programs change, and nothing here is a commitment to lend.
Ski towns reward buyers who size the loan to the shoulder seasons, not to the powder weeks.
Lendmire’s self-employed mortgages page presents both super jumbo programs, bank statement and DSCR, side by side.
About Lendmire
Lendmire, NMLS# 2371349, is a mortgage brokerage focused on investor financing, arranging DSCR loans in 40 states plus Washington, D.C. — 41 markets total. Qualification is based on the property’s income rather than personal income documentation, subject to lender guidelines, making it a fit for LLC-held rentals and scaling portfolios. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
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Informational only. Not a Loan Estimate, approval, or commitment to lend. Program availability and eligibility are subject to lender guidelines, credit approval, property review, and underwriting.
References
1. McKissock – Form 1007 and short-term rental appraisals
This article is part of Lendmire’s super jumbo DSCR loan program — full qualification details, guidelines, and scenarios live on the program page.
Related reading: How First-Time Investors Qualify for a Luxury Rental DSCR Loan · How to Document a Jumbo DSCR Loan · How to Qualify for a DSCR Loan for a Luxury Condo Rental
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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Important disclosures. Lendmire (NMLS# 2371349) is a licensed mortgage brokerage. Lendmire is not a direct lender, depository institution, or financial advisor. All loan inquiries are subject to lender underwriting; this article does not constitute a commitment to lend. Rates, terms, and program guidelines are subject to change without notice and vary by borrower profile, property type, and state. Information in this article is general in nature and is not financial, legal, or tax advice. Equal Housing Opportunity. NMLS Consumer Access: nmlsconsumeraccess.org.