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Solvang draws steady tourism traffic year-round. That makes short-term rental income here more predictable than in most California markets.
DSCR loans qualify you on property cash flow — not your tax returns. That's a major advantage for investors with complex income.
660–680 typical
Min Credit Score
1.0x preferred
Min DSCR Ratio
20–25% required
Down Payment
None required
Income Docs
30-year fixed available
Loan Term
DSCR Loans in Solvang
DSCR stands for Debt Service Coverage Ratio. Lenders divide the property's gross rental income by the monthly mortgage payment.
Most lenders want a DSCR of 1.0 or higher. That means rent covers the full payment. Some programs go below 1.0 with a larger down payment.
Local decision guide
Use this guide to connect dscr loans eligibility, lender expectations, and local market factors before comparing payment options in Solvang.
Solvang draws steady tourism traffic year-round. That makes short-term rental income here more predictable than in most California markets.
DSCR loans qualify you on property cash flow — not your tax returns. That's a major advantage for investors with complex income.
DSCR stands for Debt Service Coverage Ratio. Lenders divide the property's gross rental income by the monthly mortgage payment.
Retail banks rarely offer DSCR loans. These are wholesale and non-QM products — you need a broker with the right lender relationships.
At SRK CAPITAL, we work with 200+ wholesale lenders. Several specialize in vacation rental markets like Solvang.
Solvang's Airbnb rental data can support your DSCR calculation. Lenders vary on whether they accept short-term rental projections.
We match you with lenders who accept Airbnb income estimates — not just long-term lease comparables. That difference can make or break approval.
Bank Statement loans also skip tax returns, but they require 12-24 months of personal deposits. DSCR skips your income entirely.
Hard Money moves faster but carries higher rates and short terms. DSCR gives you a 30-year fixed on an investment property — without W-2s.
Santa Barbara County has strict short-term rental regulations in some areas. Confirm your Solvang property is STR-eligible before you apply.
Solvang's Danish village appeal keeps occupancy rates strong during peak seasons. Lenders respond well to markets with proven rental histories.
Some lenders accept short-term rental projections using market data. Not all do — lender selection matters here.
Most lenders target 1.0 or above. Some allow below 1.0 with a larger down payment. Rates vary by borrower profile and market conditions.
No. DSCR loans qualify on property income, not personal income. Tax returns are not required.
Most DSCR programs require 20-25% down. Exact requirements depend on lender, credit profile, and property type.
Yes, but confirm STR zoning compliance first. Lenders will require proof the property is legally rentable.