Question 1

Can I use projected Airbnb income for DSCR qualification in Buellton?

Accepted Answer

Yes, but lenders use a market rent analysis that discounts short-term rental income by 25%. If comparable properties generate $5,000 monthly, lenders calculate DSCR using $3,750.

Question 2

What DSCR ratio do I need for a vacation rental near Solvang?

Accepted Answer

Most lenders require 1.25 DSCR minimum for short-term rentals. Properties at 1.0-1.24 may qualify with larger down payments or higher credit scores, but expect rate adjustments.

Question 3

Do DSCR lenders care about my existing rental properties?

Accepted Answer

Not for qualification. DSCR loans ignore your other mortgages and income sources. Each property underwrites independently based on its own rental income and debt coverage.

Question 4

How long does DSCR loan approval take in Santa Barbara County?

Accepted Answer

Expect 21-30 days from application to closing. No tax return review speeds things up compared to conventional loans, but appraisals in wine country can take 10-14 days.

Question 5

Can I finance a multi-unit property in Buellton with a DSCR loan?

Accepted Answer

Yes, DSCR lenders approve 2-4 unit properties. Expect 25% down minimum and slightly higher rates than single-family. Each unit's rent must be included in the DSCR calculation.

DSCR Loans in Buellton: Qualify for Investment Property Using Rental Income Alone