Question 1

Can I use projected rent for a Santa Barbara property I just bought?

Accepted Answer

Yes, if the appraisal includes a market rent analysis. Most lenders require the property to be stabilized or use 75% of appraised market rent for vacant units.

Question 2

Do DSCR loans work for vacation rentals in Santa Barbara?

Accepted Answer

No. DSCR loans require long-term residential leases. Santa Barbara's vacation rental restrictions and lender guidelines both exclude short-term rentals.

Question 3

What credit score do I need for a DSCR loan here?

Accepted Answer

Minimum 640 to qualify, but 680+ gets significantly better rates. Some portfolio lenders go to 620 with larger down payments and stronger property cash flow.

Question 4

Can I refinance an existing Santa Barbara rental with DSCR?

Accepted Answer

Yes, if the property generates enough rent to meet DSCR requirements. Cash-out refinances are available but typically require 1.25+ DSCR and 25-30% equity remaining.

Question 5

How do lenders handle Santa Barbara's seasonal rental market?

Accepted Answer

They use annual lease comparables, not seasonal rates. Properties that only rent peak season won't qualify since DSCR lenders require 12-month lease potential.

DSCR Loans in Santa Barbara: Finance Rentals Without Tax Returns