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Santa Maria sits in Santa Barbara County — a rental market with real demand from ag workers, VAFB personnel, and college students.
That steady renter pool matters for DSCR loans. Lenders want to see stable cash flow, and Santa Maria's diverse tenant base helps.
680+
Min Credit Score
1.0 – 1.25
Min DSCR Ratio
20 – 25%
Down Payment
None
Income Docs Required
Allowed
LLC Vesting
DSCR Loans in Santa Maria
DSCR lenders care about one ratio: monthly rent divided by monthly debt payment. A ratio of 1.0 means the property breaks even. Most lenders want 1.1 or higher.
You'll typically need a 680+ credit score and 20-25% down. No tax returns. No employment verification. The property qualifies you.
Local decision guide
Use this guide to connect dscr loans eligibility, lender expectations, and local market factors before comparing payment options in Santa Maria.
Santa Maria sits in Santa Barbara County — a rental market with real demand from ag workers, VAFB personnel, and college students.
That steady renter pool matters for DSCR loans. Lenders want to see stable cash flow, and Santa Maria's diverse tenant base helps.
DSCR lenders care about one ratio: monthly rent divided by monthly debt payment. A ratio of 1.0 means the property breaks even. Most lenders want 1.1 or higher.
DSCR is a non-QM product. That means retail banks largely won't touch it. You need a broker with access to wholesale non-QM lenders.
Rates on DSCR loans run higher than conventional. That's the cost of skipping income verification. Rates vary by borrower profile and market conditions.
One mistake investors make: using projected rents. Most DSCR lenders want a signed lease or an appraisal-based market rent estimate.
Short-term rentals are trickier. Some lenders accept Airbnb income. Most use 75% of gross projected rent. Know your lender before you pick your strategy.
Bank Statement loans also skip tax returns, but they qualify on your business deposits — not the property. Better fit for self-employed investors with strong revenue.
Hard Money loans close faster but carry much higher rates and short terms. DSCR is the better long-term hold product for a Santa Maria rental property.
Santa Maria's rental market spans single-family homes, small multifamily, and the occasional ADU setup. DSCR works on all of these.
Properties near Vandenberg Space Force Base tend to attract longer-term tenants — that stability reads well on a DSCR underwrite.
Most lenders want a DSCR of 1.1 or higher. Some allow 1.0, but expect a rate bump and stricter terms.
Some lenders accept a market rent estimate from the appraisal. Others require a signed lease. Ask before you close escrow.
No. DSCR loans don't use personal income. The property's rent-to-payment ratio is what gets you approved.
Some lenders allow STR income, but not all. Expect them to use 75% of projected gross revenue — not full nightly rate estimates.
Plan on 20-25% down. Some lenders go to 15% with stronger credit and a higher DSCR ratio.
Yes. Most DSCR lenders allow LLC vesting. This is one of the few loan types that actually supports it cleanly.