DSCR Loans in Louisiana
Louisiana's ultra-low property taxes, vibrant STR market in New Orleans, and affordable entry points create unique DSCR opportunities in the Deep South.
MARKET OVERVIEW
Louisiana DSCR Loan Market
Louisiana offers DSCR investors a unique combination of very low property taxes (0.53%), affordable home prices, and one of the most active STR markets in the country (New Orleans). The state's landlord-friendly laws and low cost of living keep operating expenses manageable. New Orleans is a top-tier vacation rental market, though the city has implemented STR regulations. Baton Rouge benefits from state government, LSU, and petrochemical industry employment. Insurance costs, particularly hurricane and flood insurance, are a key consideration for Louisiana properties. Despite this, the low tax rate and strong rents produce favorable DSCR ratios.
Top Investor Cities
- New Orleans
- Baton Rouge
- Shreveport
Monthly tax on $215,000 property: $95/mo
PROGRAMS AVAILABLE IN LOUISIANA
8 DSCR Loan Programs for Louisiana Investors
Standard DSCR
The most popular option. 20% down, 660+ credit.
No-Ratio DSCR
No minimum DSCR required. 30% down.
Interest-Only DSCR
Lower monthly payments for better cash flow.
STR DSCR
Use projected Airbnb/VRBO income to qualify.
Foreign National DSCR
No SSN or US credit history required.
Bank Statement DSCR
Hybrid qualification for self-employed investors.
Portfolio DSCR
Finance multiple properties under one loan.
Bridge-to-DSCR
Purchase, rehab, then refinance into DSCR.
REQUIREMENTS
DSCR Loan Requirements in Louisiana
Licensing & Regulatory
Loans in Louisiana are originated by [Broker D], NMLS# [XXXXXX], licensed in Louisiana.
All lending decisions and terms are determined solely by the matched broker and their wholesale lending partners.
Common Property Types
- Single-Family Rentals
- Small Multifamily (2-4 Units)
- Short-Term Rentals
Down Payment & LTV
- Standard DSCR: 20% minimum down (80% LTV)
- No-Ratio DSCR: 30% minimum down (70% LTV)
- 30%+ down unlocks No-Ratio DSCR programs and broader lender access
Appraisal & Rent Schedule
- Form 1007 rent schedule required with appraisal
- Appraisal estimates market rent for DSCR calculation
- STR properties: AirDNA projected income accepted
DEAL EXAMPLE
Sample DSCR Deal in Baton Rouge, Louisiana
Single-Family Rental
Baton Rouge, Louisiana
Monthly Breakdown
This borrower closed in 25 days with no income verification, no tax returns, and no employment check.
Results may vary. This is a representative example, not a guarantee of future performance.
This deal example is for illustrative purposes only and is based on representative scenarios across our broker network. Actual loan terms, approval, and closing depend on your full credit profile, property details, appraisal, and the matched lender's specific guidelines. This is not a loan offer or commitment to lend.
FREQUENTLY ASKED
DSCR Loan Questions for Louisiana Investors
DSCR loans in Louisiana require a minimum 660 credit score, 20% minimum down payment, and non-owner-occupied status. No income docs or tax returns needed. Louisiana uses a unique "parish" system instead of counties, which can affect where you file documents, but the DSCR loan process is standard.
Rates start from 5.99% for 740+ FICO with 35%+ down. Most Louisiana investors see rates between 6.50% and 7.75%.
Yes. New Orleans is one of the top STR markets in the country. However, the city has significant STR regulations including licensing requirements, a prohibition on whole-home STRs in residential areas (with some exceptions), and a commercial activity license requirement. Our STR DSCR program uses projected income to qualify.
Louisiana has one of the lowest effective property tax rates in the nation at approximately 0.53%. On a $215,000 property, that's only about $95/month. This is a major advantage for DSCR ratios. However, insurance costs in Louisiana (hurricane, flood) can be significant and should be factored into your PITIA calculation.
Yes. DSCR loans have no owner-occupancy requirement. New Orleans attracts significant out-of-state investment. Property management is readily available. Foreign nationals are also eligible.
GET STARTED
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Match Me With a SpecialistLoans in Louisiana are originated by [Broker D], NMLS# [XXXXXX], licensed in Louisiana. is not affiliated with DSCRBroker.com except as a participating broker in our matching network. All lending decisions and terms are determined solely by the matched broker and their wholesale lending partners.