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Making informed real estate decisions starts with having the right knowledge. At HomeAbroad, we offer US mortgage products for foreign nationals & investors and have a network of 500+ expert HomeAbroad real estate agents to provide the expertise you need. Our content is written by licensed mortgage experts and seasoned real estate agents who share insights from their experience, helping thousands like you. Our strict editorial process ensures you receive reliable and accurate information.
Key Takeaways:
1. Louisiana’s rental markets, especially in cities like New Orleans, Baton Rouge, and Lafayette, are attracting global investors with competitive home prices, steady rental demand, and growing tourism-driven income opportunities.
2. HomeAbroad DSCR loans allow foreign nationals to invest in Louisiana real estate without needing a US income, US credit history, or residency status.
3. These loans are underwritten solely based on the property’s rental income, so international real estate investors don’t need to undergo personal income verification.
4. HomeAbroad offers a streamlined solution for international real estate investors, helping you discover investment-ready properties with our AI-driven investment property search platform, secure DSCR financing, set up a US-based LLC, and handle the legal and banking steps needed to close successfully - all in one place.
Table of Contents
Thinking of investing in Louisiana real estate? You’re not alone! After all, Louisiana isn’t just home to Mardi Gras and mouthwatering beignets. It’s also one of the most culturally rich and rental-friendly markets in the US.
In cities like New Orleans, where nearly half of all housing units are renter-occupied, international real estate investors have a real opportunity to earn strong returns.
And with a DSCR loan, you don’t need to undergo personal income verification. Instead, the property qualifies based on its own rental income, which means that a good investment can practically pay for itself and still leave room for cash flow.
From jazz-filled short-term rentals in the French Quarter to stable long-term properties in Baton Rouge, DSCR loans through HomeAbroad offer an easy, international-friendly path to growing your real estate portfolio.
What is a DSCR Loan for Foreign Nationals?
A DSCR loan (Debt-Service Coverage Ratio loan) is a real estate financing option designed for investors who want to qualify based on rental income rather than personal income. Instead of tax returns or pay stubs, lenders assess whether the property’s rental income can cover the mortgage payments.
I worked with an investor who had an excellent eye for high-cash-flow rentals but struggled with financing because they were self-employed. With our DSCR loan, we skipped the income paperwork maze and got them approved using the property’s rental income.
With Louisiana’s average rental yield at 9.13%, real estate investors can leverage this loan to acquire cash-flowing properties while maximizing their returns in markets like New Orleans, Baton Rouge, and Shreveport.
How to Calculate the DSCR Ratio?
Calculating your Debt Service Coverage Ratio (DSCR) is essential to determine whether your investment property generates enough rental income to pay for it’s mortgage payment and qualify for the loan.
The formula is simple:
Example
Calculating the DSCR Ratio for a Louisiana Property:
While a DSCR of 1.0 or higher is ideal, meaning the property’s rental income fully covers the mortgage payment, HomeAbroad offers flexible options for investors. Properties with a DSCR below 1.0 are still eligible but require a slightly larger down payment (a 5% hit to LTV) and may have higher interest rates.
For situations where the DSCR comes between 0 - 1, our No-Ratio DSCR Program offers a unique solution. This option offers more flexibility by focusing less on rental income and more on the overall investment potential, though it comes with higher down payment requirements (a 5% hit to LTV) and interest rates to account for the additional risk.
Figuring out your DSCR ratio is easy with our handy DSCR calculator. Just plug in your financial info, and you’re good to go!
DSCR Loan Requirements in Louisiana for Foreign Nationals
Compared to traditional lenders, HomeAbroad offers a streamlined DSCR loan process specifically built for foreign national investors. Whether you are investing from abroad or do not have a US credit history, our flexible terms, low documentation requirements, and remote-closing support make Louisiana real estate more accessible.
Here is how our lending criteria compare to conventional lenders for DSCR loans.
| Features | HomeAbroad DSCR Loan | Other Lenders |
|---|---|---|
| DSCR Ratio | >= 1 for best terms, <1 eligible with higher down payment. We provide DSCR Loans for foreign nationals at a DSCR ratio as low as 0.75, which means you are eligible even if your rental covers just 75% of the mortgage. | Usually 1.2 and above, which means the property must generate 20% more income than expenses. |
| Credit Score | You can qualify without a US credit score. We underwrite the loan based on your property’s rental income, not personal income. | Other lenders require you to have a minimum credit score of 620. Many lenders also do not consider foreign credit reports. |
| Down Payment | Low down payment of 25%, which gives you higher leverage and leaves more capital free for other investments. | About 30 – 35%, which increases your upfront cost. |
Additional DSCR Loan Requirements Foreign Nationals Should Know
Beyond DSCR ratio, down payment, and credit score, there are a few more requirements and considerations that can significantly impact your ability to qualify for a DSCR loan as an international real estate investor.
- No income verification required: Unlike traditional lenders who ask for tax returns or employment proof, we qualify you based solely on the property’s projected rental income.
- Flexible ownership structures: You can purchase under your name or through a US LLC, depending on what aligns best with your investment goals.
- Lower cash reserve requirements: We generally ask for 6 months of reserves, while other lenders may require 12 months or more.
- Remote closing support: The entire loan process can be completed from your home country without traveling to the US.
- US bank account assistance: We assist you in opening a US bank account for collecting rent and making mortgage payments.
With years of experience working with international real estate investors, HomeAbroad offers personalized guidance and access to an AI-driven investment property search platform to help you find top-performing investments across Louisiana, while our experts tailor the best DSCR loan solutions to fit your goals.
Where We Lend DSCR Loan in Louisiana
HomeAbroad offers DSCR loans across Louisiana, with tailored support for investors in top-performing cities like New Orleans, Baton Rouge, Lafayette, and more.
Here are a few cities where we lend DSCR loans in Louisiana.
- Shreveport
- New Orleans
- Baton Rouge
- Lafayette
- Lake Charles
- Elmwood
- Bossier City
- Houma
- Alexandria
- Kenner
- Monroe
- Morgan City
- Pineville
- Marrero
- Gretna
- Slidell
- Youngsville
- Opelousas
- Hammond
- New Iberia
To see how a DSCR loan works in action, let’s explore a real-life case study of a Canadian investor who successfully financed a property in Louisiana with the help of HomeAbroad.
Case Study: A Canadian Investor Secures a HomeAbroad DSCR Loan to Buy a Rental Property in Louisiana
David, a Canadian national, wanted to buy his first rental property in the US to build passive income. However, he kept getting rejected by traditional lenders. He had no US credit history and did not want to provide extensive income documentation from Canada.
The Solution: HomeAbroad’s Foreign National DSCR Loan
That’s when David connected with Steven Glick, a seasoned mortgage expert at HomeAbroad who specializes in foreign national DSCR loans. Steven guided him through the process, from identifying a cash-flowing property in Louisiana to closing remotely with minimal paperwork.
- Loan amount: $104,925
- Purpose: Purchase
- Loan type: 30-year fixed-rate
- Down payment: 25% ($34,975)
- Monthly PITIA: $1,300
- Time to close: 27 days
Why This Worked for David:
- No US credit required: David qualified based on the property’s rental income instead of his Canadian credit or employment history.
- Remote closing support: As a non-resident, he was able to complete the entire process from Canada with assistance from HomeAbroad’s remote loan support team.
- Strong DSCR ratio: With a monthly rent of $1,642 and PITIA of $1,300, the DSCR came out to 1.26, meeting HomeAbroad’s lending requirements.
- Immediate positive cash flow: The property began generating income from the first month.
Steven Glick,
Director of Mortgage Sales, HomeAbroad LoansWith expert guidance from HomeAbroad, David successfully entered the US rental market and began building long-term wealth without needing to travel or submit traditional documentation.
Top Places to Invest in Louisiana with a DSCR Loan
Louisiana offers affordable real estate and high rental yields, making it a prime investment market. With an average home price of $196,979, far below the US average of $355,328, investors can enter at a lower cost while earning strong rental income.
Baton Rouge, Lafayette, and Shreveport see steady long-term demand from students and professionals due to major universities and employers, while New Orleans, Lake Charles, and Natchitoches thrive on tourism, driving high short-term rental potential.
With Louisiana’s strong rental yields and DSCR loans, investors can acquire properties that cover their mortgage and generate positive cash flow.
Here are some top investment cities in Louisiana:
City | Rental Type | Rental Yield |
|---|---|---|
New Orleans | Short-Term | 10.5% |
Baton Rouge | Short-Term | 9.8% |
Lafayette | Short-Term | 9.2% |
Shreveport | Long-Term | 8.7% |
Lake Charles | Long-Term | 8.3% |
New Orleans: The vibrant cultural capital with a booming short-term rental market
New Orleans isn’t just about music and Mardi Gras. Known as the Big Easy, it draws millions with its rich culture, festivals, and historic neighborhoods. This strong tourism appeal supports one of the most active short-term rental markets in the state.
Median Home Price: $247,205
Average Rent: $1,756
What this means for investors:
New Orleans offers high short-term rental income potential, with solid occupancy rates and strong average nightly pricing. Its tourism-driven demand and limited supply of legal short-term rentals create a favorable environment for DSCR-based financing. International real estate investors can count on consistent rental income and long-term appreciation in key neighborhoods.
Investment Properties Listed Today on Sale in New Orleans
Baton Rouge: A steady performer with strong short-term rental appeal
As the state capital and home to Louisiana State University, Baton Rouge combines government stability with a vibrant student population and medical workforce. Its mix of education, healthcare, and culture drives year-round demand for both short- and mid-term rentals.
Median Home Price: $228,376
Average Rent: $1,406
What this means for investors:
Baton Rouge offers predictable occupancy and high rental turnover, especially near university and hospital districts. Short-term rentals can perform well in targeted neighborhoods, making it a smart pick for global investors using DSCR loans to qualify through the property’s rental income rather than personal documents.
Investment Properties Listed Today on Sale in Baton Rouge
Lafayette: A cultural hub with consistent rental returns
Lafayette is known for its Cajun heritage, vibrant arts scene, and strong regional economy. With key industries like healthcare, oil and gas services, and education, the city attracts a stable tenant base seeking both short- and long-term housing.
Median Home Price: $222,435
Average Rent: $1,432
What this means for investors:
Lafayette provides a healthy balance of affordability and tenant demand. Foreign investors can tap into a growing rental market, qualify easily with DSCR loans, and build equity in one of Louisiana’s most stable mid-size cities.
Investment Properties Listed Today on Sale in Lafayette
Shreveport: A quiet cash flow city with solid long-term rental performance
Shreveport may not make national headlines, but it’s gaining traction with savvy global investors looking for affordable entry points and stable rental returns. With strong demand for single-family homes and a growing healthcare and logistics sector, Shreveport supports reliable long-term tenants.
Median Home Price: $135,592
Average Rent: $1,100
What this means for investors:
Low home prices combined with strong rent-to-price ratios make Shreveport a prime location for long-term rental investments. International real estate investors can easily meet DSCR requirements and achieve positive cash flow without needing to invest large upfront capital.
Investment Properties Listed Today on Sale in Shreveport
Lake Charles: An energy-driven city rebuilding with rental upside
Lake Charles sits at the heart of southwest Louisiana’s petrochemical and LNG industry. The city is in a rebuilding phase following recent hurricanes, creating a window of opportunity for investors focused on long-term growth and strong tenant demand.
Median Home Price: $204,918
Average Rent: $1,050
What this means for investors:
Lake Charles offers a solid mix of affordability and rental demand, especially for long-term leases. With its industrial backbone and limited new construction, rental properties here can generate consistent income and meet DSCR benchmarks with ease.
Investment Properties Listed Today on Sale in Lake Charles
Specific Considerations for Investing in Louisiana for Foreign Nationals
Louisiana’s real estate market offers affordable entry points and high rental yields, especially in cities like New Orleans, Baton Rouge, and Lafayette. However, the state’s distinct legal system, weather risks, and short-term rental laws require special attention.
Key factors to keep in mind include:
– Hurricane Exposure and Insurance Volatility
Louisiana faces recurring storm activity and rising flood insurance costs. Many private insurers have scaled back coverage, prompting reliance on state-run Louisiana Citizens policies. Properties in coastal or low-lying zones may require both homeowners and flood insurance. Newer homes or raised structures often get better rates.
– Civil Law System and Property Transfer Process
Unlike most US states, Louisiana follows a civil law system rooted in French and Spanish codes. This affects how property deeds, inheritance laws, and contracts are interpreted.
– New Orleans Short-Term Rental Crackdowns
New Orleans has enacted some of the strictest short-term rental rules in the country. Non-owner-occupied short-term rentals are banned in most residential zones, and strict permitting rules apply elsewhere. Violations can result in steep fines. Global investors targeting the short-term market should consider areas like Jefferson Parish or cities with more relaxed ordinances.
Strategic & Future Considerations for Foreign Nationals Investing in Louisiana
Louisiana offers international real estate investors a mix of historic charm, strong cultural tourism, and steady rental demand from both urban and industrial markets. Looking forward, infrastructure recovery, climate resilience efforts, and suburban development are shaping the next wave of real estate opportunities across the state.
Here are some future considerations that foreign real estate investors need to pay heed to:
1. Unrestricted Foreign Property Ownership: Louisiana allows full property ownership rights for foreign nationals, supporting direct investment in residential and mixed-use properties. This legal ease is especially favorable for first-time international real estate investors entering the US market.
2. Short-Term Rental Demand in Cultural Hubs: Cities like New Orleans benefit from global tourism, music festivals, and conventions that drive high-performing short-term rental markets. Global investors should monitor evolving city regulations and neighborhood-specific STR policies to maximize returns.
3. Energy and Industrial Corridor Development: Baton Rouge, Lake Charles, and Lafayette are part of the Gulf Coast’s energy belt. Continued investment in LNG, chemical, and shipping infrastructure creates consistent housing demand from rotating contractors and long-term workforce renters.
4. Growing Suburban and Inland Markets: Secondary cities and surrounding suburbs, particularly those near economic corridors, are drawing interest due to affordability, local job growth, and improved flood mitigation strategies, opening up stable long-term rental prospects.
Get a HomeAbroad DSCR Loan in Louisiana as a Foreign National
Investing in Louisiana’s real estate market is simple with HomeAbroad. Our DSCR loans are built for foreign nationals who want to grow their rental property portfolios without needing US credit history or personal income documentation.
HomeAbroad simplifies every step of the investment process. Use our AI-driven property search platform to identify high-yield opportunities in cities like New Orleans, Baton Rouge, and Lafayette. Our expert team helps with LLC formation, US bank account setup, and ongoing property management coordination.
If you already own a rental property in Louisiana, HomeAbroad also offers refinancing options. You can access your property’s equity to fund renovations, purchase additional rentals, or improve cash flow. The process is straightforward and relies on your rental income instead of US credit or personal income records.
Start building your Louisiana portfolio with a HomeAbroad DSCR loan designed to support your long-term strategy.
FAQs
Can I invest in Louisiana real estate without a US credit history?
Yes. HomeAbroad’s DSCR loans for foreign nationals don’t require a US credit history. We qualify you based on the property’s rental income, not your personal income.
What types of properties are eligible in Louisiana?
You can finance single-family homes, duplexes, triplexes, and even short-term rental properties in high-demand cities like Baton Rouge, Lafayette, and New Orleans.
Can I apply for a DSCR loan from abroad?
Absolutely. HomeAbroad supports remote applications and closings, so you can invest in Louisiana real estate without visiting the US.
Can I refinance my Louisiana property to grow my portfolio?
Yes. If you already own a rental property in Louisiana, you can refinance to access built-up equity. Use it to purchase another property, renovate, or diversify, without personal income verification.
At HomeAbroad, we ensure the reliability of our content by relying on primary sources such as government data, industry reports, firsthand accounts from our network of experts, and interviews with specialists. We also incorporate original research from respected publishers when relevant. Discover more about our commitment to delivering precise and impartial information in our editorial policy.
AirDNA: https://www.airdna.co/vacation-rental-data/app/us/illinois
Zillow: Housing Data – Zillow Research
