Investing in Louisiana real estate? A DSCR loan lets you qualify based on rental income instead of personal income, making it easier to finance investment properties. With this approach, the property pays for itself, and a strong-performing rental can even generate positive cash flow after mortgage payments.
Whether you’re buying short-term rentals in New Orleans or long-term rentals in Baton Rouge, DSCR loans provide a streamlined financing solution designed for investors.
Get started with a DSCR loan in Louisiana through HomeAbroad and grow your investments today!
Table of Contents
Key Takeaways:
➡️ DSCR loans qualify investors based on property cash flow, making them a great option for those without traditional income proof or high debt-to-income ratio.
➡️ DSCR loans work for all property types, including short-term, long-term, and multi-family rentals.
➡️ DSCR loans don’t require W-2s, pay stubs, or tax returns—qualification is based entirely on the property’s rental income instead of personal income.
What is a DSCR Loan?
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.
DSCR loans in Louisiana make it easier for investors to purchase rental properties without income verification.
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 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:
Most lenders require a DSCR of 1.0 or higher, meaning the property generates enough rental income to cover the mortgage payment.
For investors who don’t meet the standard DSCR ratio, our No-Ratio DSCR program allows qualification with a DSCR as low as 0.75, requiring a higher down payment and interest rates compared to the ideal scenario.
Figuring out your DSCR ratio is easy with our handy DSCR calculator. Just plug in your financial info, and you’re good to go!
Requirements of DSCR Loan in Louisiana
HomeAbroad offers DSCR loans to both domestic and international investors—here are the requirements for each.
| Features | Domestic Investors | Global Investors |
|---|---|---|
| DSCR Ratio | 1 or Higher (No Ratio DSCR Program Available) | >= 1 for best terms, <1 eligible with higher down payment |
| Credit Score | Minimum 620 | No US credit needed |
| Down Payment | 20% | 25% |
| LTV Ratio | Up to 80% for Purchase and Rate/Term Refinance, Up to 75% for Cash Out Refinance | Up to 75% for Purchase and Rate/Term Refinance, Up to 70% for Cash Out Refinance |
| Cash Reserves | 2 months | 6 months |
| Property Use | Investment properties (residential and commercial) | Investment properties (residential and commercial) |
| Loan Amount | $75K – $10M | $75K – $10M |
With a proven track record of helping investors secure financing, HomeAbroad specializes in DSCR loans tailored to both domestic and foreign buyers. Our expertise and trusted network ensure a seamless loan process, making it easier to invest in high-yield rental properties across Louisiana.
Where We Lend DSCR Loan 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 an investor who successfully financed a property in Louisiana with the help of HomeAbroad.
Case Study: Louisiana Investor David Secures a HomeAbroad DSCR Loan to Buy a Rental Property
David wanted to start his real estate investment journey but didn’t want to go through the hassle of income verification required by traditional lenders.
That’s when Steven Glick, an experienced mortgage loan officer at HomeAbroad, stepped in. With years of expertise in structuring DSCR loans for real estate investors, Steven guided David through every step, from identifying a high-yield property to securing the right loan terms.
Property Details:
Location: Shreveport, LA
Property Price: $139,900
Monthly Rent: $1,642
Loan Details:
Loan Amount: $104,925
Down Payment: 25% ($34,975)
Monthly PITIA : $1,300
DSCR Calculation:
DSCR Ratio = Gross Rental Income ÷ PITIA
DSCR = $1,642 ÷ $1,300
DSCR = 1.26
With a DSCR of 1.26, David secured a financing solution that met his investment goals—without income verification. Thanks to Steven’s expertise in DSCR loans, David not only obtained funding but also ensured his property would generate positive cash flow from day one.
Having worked with real estate investors for years, I’ve seen firsthand how DSCR loans unlock opportunities that traditional financing often restricts. These loans provide a flexible path to securing investment properties without the usual income verification hurdles.
Steven Glick, (Director of Mortgage Sales, HomeAbroad)
Top Places to Invest in Louisiana with 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% |
Need help finding the right investment property? Our AI-driven investment property search platform can help you discover high-performing rentals in Louisiana or anywhere in the US!
Get a HomeAbroad DSCR Loan in Louisiana
HomeAbroad is a one-stop PropTech and FinTech platform that helps both global and US investors secure tailored DSCR loans with competitive rates and flexible terms to maximize investment returns.
Beyond financing, our AI-driven investment property search and specialized local agents help you find cash-flow-generating properties. We also provide LLC setup, US bank account opening, property management services, and an end-to-end concierge service—everything you need under one roof.
Get a DSCR loan with HomeAbroad today and start growing your real estate portfolio!
Pre-qualify for a DSCR Loan in a Few Clicks.
No Paystubs, W2s, or Tax Returns Required.
FAQs
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Can an LLC get a DSCR loan in Louisiana?
Yes! DSCR loans in Louisiana can be taken under an LLC, making them ideal for real estate investors looking to separate personal and business assets. At HomeAbroad, we assist investors in setting up an LLC and securing financing tailored to their investment strategy.
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What Are the Interest Rates for DSCR Loans in Louisiana?
Interest rates for DSCR loans are typically 1-2% higher than conventional mortgages due to their flexible qualification process. You can check the latest DSCR loan interest rates here.
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How can I improve my property’s DSCR ratio to qualify for a DSCR loan in Louisiana?
You can boost your DSCR ratio by elevating rental income, trimming expenses, settling existing debts, and enhancing property management efficiency.
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
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