The beautiful state of Louisiana is an excellent place to purchase investment properties: in fact, over $20 billion in investments poured into the state last year, signifying an immense boost to its overall economy. It's expected to add over 14,000 jobs to the workforce in 2023, with more than 30,000 in 2023.
There has never been a better time to purchase investment properties in Louisiana, and DSCR loans can help you secure the cash flow of your dreams. Visio Lending offers real estate investors the opportunity to purchase or refinance investment property through DSCR loans, which forego any personal income verification to focus on the property's DSCR as the primary determinant of their access to financing.
If you're looking for the next real estate project to add to your investment portfolio, focus on Louisiana DSCR loans through Visio Lending.
For all types of properties, the DSCR loan process is straightforward, consisting mostly of investigating the investment and its ability to repay the loan over time through rental income.
Your credit score will identify your interest rate. Most lenders want a score of at least 620 in Louisiana, though a higher score is certainly preferred. The higher your credit score, the more favorable loan terms you can access.
You will need to have the property appraised to identify its market value; you should also submit any lease documents and complete a rent schedule showing the market rents for the particular investment.
ADSCR loans hinge upon the DSCR ratio, which is the property's cash flow divided by the cost to fund it. A higher DSCR indicates a better-performing property, and you should strive for a DSCR of 1.25 or higher.
Your lender will want a loan-to-value ratio (LTV) of 80% or lower, meaning you must provide at least a 20% down payment. Many expect a down payment of 25% or higher. Lastly, you'll pay the closing costs, which vary between 3% and 6% of the principal.
Check out some of Visio Lending's recently closed DSCR loans in Louisiana.