A straight answer
Can I get a loan to buy a vacation rental or second home in Palm Springs?
The direct answer
Yes, I arrange loans for second homes and vacation rentals in Palm Springs and the desert cities. The key difference is whether you will use the home yourself or mainly rent it out, and that decides the loan. I'm Zach von der Linden (NMLS 1652805), a mortgage broker with West Capital Lending, based in San Clemente.
It really can be as simple as having the down payment. We can arrange a loan based on what the house can rent for. Bring the down payment and enough reserves, and we get the house appraised based on what it can rent for. It really is that simple.
Every loan is subject to full approval.
I was just in Palm Springs for a buddy’s birthday. We stayed at a big rental home with a pool, a volleyball court and putt-putt, and I get why people come back wanting a place like that. I work with homeowners in California, Utah, Oregon and Arizona.
Zach von der Linden, mortgage broker and Branch Manager, West Capital Lending · NMLS 1652805
Wholesale pricing · California, Utah, Oregon and Arizona
5.0 across 66 reviews on Experience.com (read on 2026-09-24) · Text reaches Zach directly · Last updated 2026-10-02
No credit pull happens from a conversation. Texts go to Zach's cell.
Second home or investment property: the loan follows the use
Fannie Mae’s selling guide draws the line in its occupancy section. A second home “must be occupied by the borrower for some portion of the year” and “must not be rental property or a timeshare arrangement.” It also “cannot be subject to any agreements that give a management firm control over the occupancy of the property.”
Rent from a second home does not help you qualify. The guide says a loan can still be treated as a second home when the lender finds rental income “as long as the income is not used for qualifying purposes.” An investment property, in the same section, “is owned but not occupied by the borrower.”
So a desert home you will use yourself for part of the year is financed as a second home, on your own income. A home bought mainly to rent out is financed as an investment property, often with a DSCR loan, which is qualified on what the property can rent for rather than on your tax returns. That page is here: Investment property (DSCR) loans.
Those are Fannie Mae’s definitions for loans it buys, and the programs I place classify occupancy their own way. Every one of them starts with the same question, so answer it plainly in the first text: will you live there part of the year, or will guests?
Keeping your current home and renting it out
Some buyers do it the other way around: keep the home they live in now as a rental and make the desert the new primary or second home. The lender then counts both payments, and the rent on the home you keep is counted only as the program allows.
How that is arranged, and what has to be true for the rent on the home you keep to count, is on its own page: Buy the next home, keep this one as a rental.
Palm Springs regulates vacation rentals
Palm Springs regulates vacation rentals under Municipal Code Chapter 5.25, which the code says “shall be referred to as the ‘Vacation Rental Ordinance.’” The Department of Special Program Compliance administers it. The city’s official page is here: Vacation Rentals, City of Palm Springs.
A city Vacation Rental Registration Certificate is required. The code says “The operation of a vacation rental or a homeshare interest without a vacation rental registration certificate is prohibited,” and the owner registers “Prior to use of a property as a vacation rental, and annually thereafter.”
Neighborhoods have caps. The code sets a limit on the share of homes in each neighborhood that may hold a certificate, and the city says an application in a neighborhood at its cap is returned and the owner “may request to be placed on a wait list.” Further certificates there are issued in the order complete applications were filed.
There are limits on rental contracts per year. The code caps the number of contracts a property may have in a calendar year, with separate limits for new and existing permittees.
The certificate does not transfer when the home is sold. The code says “Upon change of property ownership, the registration certificate shall expire and the property shall not be used as a vacation rental until the new or successor owner is issued a vacation registration certificate for the property.” A buyer cannot count on the seller’s permit.
A few more rules matter to a buyer. An owner “can only maintain, one vacation rental registration certificate at any time,” and none is issued to a business entity. Vacation rentals are limited to single-family homes; apartments are excluded, and no accessory dwelling unit “may be rented for a term that is shorter than 30 days.” A home under CC&Rs needs a dated letter from its association board or management company with the application. An ordinance adopted in July 2026 requires that residential closing documents in the city include the city’s vacation rental disclosure form. The code also says a certificate “is a privilege; not a right.”
Transient occupancy tax applies under Chapter 3.24. The chapter’s definition of a hotel reaches single-family homes rented to transients, and the vacation rental code requires a monthly tax return “regardless of whether the vacation rental unit was rented or not.” The city’s page is here: Transient Occupancy Tax, City of Palm Springs.
The other desert cities have their own rules
Cathedral City has its own rules under its Municipal Code Chapter 5.96, and the city says permit applications for homes outside a common interest development in its Resort Residential zone “will not be processed.” Source: Cathedral City, Short-Term Vacation Rentals.
Palm Desert has its own rules under its Municipal Code Chapter 5.10; whole-home rentals with the owner off site are not permitted in its R-1 zone, and the remaining off-site permits in its HPR zone end by December 31, 2026. Source: Palm Desert Municipal Code Chapter 5.10.
La Quinta has its own rules under its Municipal Code Chapter 3.25, and the city says its code “imposes a permanent ban on new STVR permits in the General and Primary permit categories.” Source: La Quinta, Short-Term Vacation Rentals.
Indio has its own rules under Chapter 37 of its Municipal Code, which requires the owner to obtain a permit “before renting any short-term rental.” Source: Indio, Short-Term Rentals.
Rancho Mirage does not allow short-term rentals; the city says that as of July 1, 2022, “all short-term rental activity is prohibited throughout Rancho Mirage.” Source: Rancho Mirage, Short-Term Rentals.
Unincorporated Riverside County has its own rules under County Ordinance No. 927, which requires a Short Term Rental Certificate, and the county says the certificates “are non-transferable as they do not run with the land.” Source: Riverside County Planning, Short-Term Rental Program.
Confirm the rules with the city, or the county, before you buy. They change, and the loan is written for the use you tell the lender.
What has to be true
You have the down payment and the reserves the program calls for, from a documented source.
For a second home, your own income carries the new payment along with your current home’s payment. Rent from the second home is not part of it.
For an investment property qualified on the rent, the home appraises for a rent that carries its full payment. Your tax returns are not the test on that program.
The use you plan matches the loan you get. A home you will rent out is financed as an investment property, not a second home.
The home fits the program: a one-unit home suitable for year-round living is the common case for a second home.
The vacation rental use you plan is allowed where the home sits, and you can obtain the certificate or permit in your own name after closing.
What the lender checks
The occupancy classification, from your statement and the file: where you live now, how the home will be used, and any management agreement.
The appraisal, and for a rent-qualified loan, the appraiser’s opinion of what the home can rent for.
Your income against your debts for a second home, including the payments on both homes, taxes, insurance and any association dues.
The source of the down payment and the reserves, traced through your statements.
Your credit, insurance on the desert home, and any homeowners association it belongs to.
Limits
Nothing on this page states a rate, a payment, a fee, a down payment figure, a reserve count, a ratio or a credit score. Those come from the program you qualify for, in writing, before you sign anything.
A loan qualified on the rent is still a loan you owe when the home sits empty. The desert has a season, and the payment does not.
The permit is yours to get, not the seller’s to hand over. In Palm Springs the certificate expires when the property changes hands, and Riverside County says its certificates do not run with the land.
A neighborhood at its cap may mean a waiting list, and a city may not allow the rental at all, so confirm before you write the offer.
Confirm permits with the city and taxes with a tax professional; nothing here is legal, permit or tax advice.
Related pages
Questions people ask next
Is a Palm Springs vacation rental a second home or an investment property?
It depends on the use, not the address. Under Fannie Mae’s definitions a second home is occupied by you for some portion of the year and “must not be rental property,” and rental income from it is not used to qualify. A home bought mainly to rent to guests is an investment property, and I place those loans too, often as DSCR loans qualified on the rent.
Can I qualify on what the house will rent for instead of my income?
Yes, on an investment property loan qualified on the rent. Bring the down payment and enough reserves, and the home is appraised for what it can rent for. Every loan is subject to full approval, and the program’s own requirements come to you in writing.
Does the seller’s Palm Springs vacation rental certificate come with the house?
No. The city code says the registration certificate expires upon change of ownership, and the new owner must be issued a certificate before the home is used as a vacation rental. Confirm with the city whether the neighborhood is at its cap before you buy.
Can I hold vacation rental certificates on more than one Palm Springs home?
The code says an owner can only maintain one vacation rental registration certificate at any time, and none is issued to a business entity. Confirm your own situation with the city.
Which desert cities do not allow short-term rentals?
Rancho Mirage prohibits all short-term rental activity citywide. Cathedral City, Palm Desert and La Quinta each restrict new permits by zone or category, Indio requires a permit, and unincorporated Riverside County requires a county certificate. Each rule is linked above; confirm with the city before you buy.
Do I pay transient occupancy tax on a Palm Springs vacation rental?
The city applies transient occupancy tax under Chapter 3.24 to single-family homes rented to transients, and requires a monthly return whether or not the home was rented that month. Ask a tax professional about the tax treatment of the home and the rental income.
Can I keep my current home, rent it out, and buy in the desert?
Yes, that is a common plan. The lender counts both payments and counts rent from the home you keep only as the program allows. The details are on the buy-and-keep page linked above.
What clients say
Zach was great. Easy process and he took care of the little things that needed to be done to close the loan and offered up sound advice throughout the process.
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Which page is this?
Investment property: qualifies on the property’s rental income. Programs like this exist. The property’s rent against its full monthly housing cost is the qualifying test, and this page explains it in plain words.
Can I buy a rental where the rent qualifies instead of my tax returns?
That page has the tradeoffs and the same next step: a text to Zach.
Sources and checked dates
Sources: Confirmed by Zach, Sept 2026 (checked 2026-09-27) · Fannie Mae selling guide, B2-1.1-01, Occupancy Types (checked 2026-09-27) · City of Palm Springs, Vacation Rentals (Department of Special Program Compliance) and Palm Springs Municipal Code Chapter 5.25 (checked 2026-09-27) · City of Palm Springs, Transient Occupancy Tax (TOT), Department of Finance and Treasury (checked 2026-09-27) · City of Cathedral City, Short-Term Vacation Rentals (checked 2026-09-27) · Palm Desert Municipal Code Chapter 5.10, Short-Term Rental Ordinance (ecode360) (checked 2026-09-27) · City of La Quinta, Short-Term Vacation Rentals (checked 2026-09-27) · City of Indio, Short-Term Rentals (checked 2026-09-27) · City of Rancho Mirage, Short-Term Rentals (checked 2026-09-27) · Riverside County Planning, Short-Term Rental Program (checked 2026-09-27).
Show each claim on this page, what it depends on, and the date it was checked (12)
| What we say, and what it depends on | Source | Checked |
|---|---|---|
| Zach places home equity lines on second homes, and loans on second homes and short-term or vacation rentals, including DSCR loans. | Confirmed by Zach, Sept 2026 | 2026-09-27 |
| Zach’s own words on rent-qualified purchase loans: “It really can be as simple as having the down payment. We can arrange a loan based on what the house can rent for. Just bring the down payment and enough reserves, and we get the house appraised based on what it can rent for. It really is that simple.” Always shown with the line “Every loan is subject to full approval.” | Confirmed by Zach, Sept 2026 | 2026-09-27 |
| Zach was recently in Palm Springs for a friend’s birthday at a large rental home with a pool, a volleyball court and putt-putt. | Confirmed by Zach, Sept 2026 | 2026-09-27 |
| Fannie Mae’s selling guide, section B2-1.1-01 Occupancy Types (10/05/2022), says a second home “must be occupied by the borrower for some portion of the year,” “is restricted to one-unit dwellings,” “must be suitable for year-round occupancy,” that “the borrower must have exclusive control over the property,” that it “must not be rental property or a timeshare arrangement” and “cannot be subject to any agreements that give a management firm control over the occupancy of the property.” It adds: “If the lender identifies rental income from the property, the loan is eligible for delivery as a second home as long as the income is not used for qualifying purposes, and all other requirements for second homes are met.” It defines an investment property as one that “is owned but not occupied by the borrower.” | Fannie Mae selling guide, B2-1.1-01, Occupancy Types | 2026-09-27 |
| Palm Springs regulates vacation rentals under Municipal Code Chapter 5.25, which “shall be referred to as the ‘Vacation Rental Ordinance’” and is administered by the Department of Special Program Compliance. “The operation of a vacation rental or a homeshare interest without a vacation rental registration certificate is prohibited.” Owners register “Prior to use of a property as a vacation rental, and annually thereafter.” The code caps the share of homes in each neighborhood that may hold a certificate and issues any further certificates in that neighborhood “in order of the date on which complete applications were filed”; the city’s density page says an application in a neighborhood at its cap is returned and the owner “may request to be placed on a wait list.” The code limits the number of rental contracts per property per calendar year, with separate limits for new and existing permittees. “Upon change of property ownership, the registration certificate shall expire and the property shall not be used as a vacation rental until the new or successor owner is issued a vacation registration certificate for the property.” “An owner shall only be issued, and can only maintain, one vacation rental registration certificate at any time,” and no certificate is issued to a business entity. Vacation rentals are limited to single-family dwellings; apartments may not be rented for 28 consecutive days or less, and “no accessory dwelling unit (ADU) or junior accessory dwelling unit (JADU) may be rented for a term that is shorter than 30 days.” A property under CC&Rs needs a dated letter from its homeowners association board or management company with the application. Ordinance 2133, adopted July 8, 2026, added that all residential real estate closing documents in the city “must include ‘The City of Palm Springs Vacation Rental Disclosure Form.’” A “vacation rental registration certificate is a privilege; not a right.” | City of Palm Springs, Vacation Rentals (Department of Special Program Compliance) and Palm Springs Municipal Code Chapter 5.25 | 2026-09-27 |
| Palm Springs charges transient occupancy tax under Municipal Code Chapter 3.24. The chapter’s definition of “hotel” includes single-family dwelling units rented to transients, and a “transient” is anyone with occupancy “for a period of twenty-eight consecutive calendar days or less.” Section 5.25.070(q) requires each vacation rental owner to comply with Chapter 3.24 and to file a monthly return “regardless of whether the vacation rental unit was rented or not.” The city’s Finance page says “A TOT return must be provided every month whether your property was rented or not.” | City of Palm Springs, Transient Occupancy Tax (TOT), Department of Finance and Treasury | 2026-09-27 |
| Cathedral City regulates short-term vacation rentals under its Municipal Code Chapter 5.96. The city says: “Currently, under CCMC 5.96, STVR Permit Applications that are not located within a common interest development … located in a Resort Residential (RR) Zone will not be processed.” Home Share permits, where the owner occupies the home, are the other new permit type. | City of Cathedral City, Short-Term Vacation Rentals | 2026-09-27 |
| Palm Desert regulates short-term rentals under Municipal Code Chapter 5.10, the “Short-Term Rental Ordinance,” which requires either an on-site or an off-site permit. The R-1 zone is listed only among the zones where on-site permits are allowed, so whole-home rentals with the owner off site are not permitted there. “Existing off-site short-term rental permits in the HPR zone may be renewed if otherwise qualified, but all such off-site short-term rental permits shall terminate, and such uses permanently cease operation, by December 31, 2026.” | Palm Desert Municipal Code Chapter 5.10, Short-Term Rental Ordinance (ecode360) | 2026-09-27 |
| La Quinta regulates short-term vacation rentals under Municipal Code Chapter 3.25. The city says: “Section 3.25.055 of the La Quinta Municipal Code (LQMC) imposes a permanent ban on new STVR permits in the General and Primary permit categories.” New permits go only to exempt areas, Homeshare permits, or large lots qualified and certified under Section 3.25.057. | City of La Quinta, Short-Term Vacation Rentals | 2026-09-27 |
| Indio regulates short-term rentals under Chapter 37 of its Municipal Code, “Regulation of Short-Term Rentals.” “The owner is required to submit an application, signed by the owner, and obtain a permit from the city pursuant to the provisions of this chapter, before renting any short-term rental,” and “Operating a short-term rental without a valid permit is prohibited.” | City of Indio, Short-Term Rentals | 2026-09-27 |
| Rancho Mirage does not allow short-term rentals. The city says: “As of July 1, 2022, all short-term rental activity is prohibited throughout Rancho Mirage,” citing Municipal Code Section 17.30.270(B): “Operation of short-term rentals is prohibited in every zone of the city.” The city defines a short-term rental as a stay of twenty-seven consecutive calendar days or less. | City of Rancho Mirage, Short-Term Rentals | 2026-09-27 |
| Unincorporated Riverside County regulates short-term rentals under County Ordinance No. 927, now Ordinance 927.3, adopted August 25, 2026: “It is unlawful for any person to advertise, maintain, operate, or use a Short Term Rental in the unincorporated area of Riverside County without an active Short Term Rental Certificate.” The county page says “Short-Term Rental Certificates are non-transferable as they do not run with the land.” | Riverside County Planning, Short-Term Rental Program | 2026-09-27 |
Written for and accountable to: Zach von der Linden, Mortgage broker and Branch Manager, West Capital Lending.
Last updated 2026-10-02.
Verify him: NMLS Consumer Access, ID 1652805 · 66 reviews on Experience.com.
Sources for product claims are listed on this page, with the date each was checked.
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