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.



Louisiana DSCR Loan Benefits

Louisiana DSCR loans are an excellent option for an experienced investor or second-time landlord alike, as they rely on the property's rental income rather than personal income to determine your eligibility for funding. Unlike traditional loans, DSCR loans don't need to review your tax returns or debt-to-income ratio; instead, they identify the property's potential income by dividing its rental income by the mortgage payment.

The main benefit of the DSCR loan calculation for Louisiana investors is that they can access loans without investigating their personal income. This is a major relief for self-employed borrowers, who may not qualify for traditional loans. This truncated investigation also means that the application process is faster, allowing investors to quickly add to their real estate profile.

Investors can also secure DSCR loans through a corporation, preventing entanglements with their own finances.

Why invest in Louisiana real estate? The primary reason is that it is an up-and-coming economy with low real estate prices, making it a great deal for younger investors without significant cash. The short-term cost will pay for itself over time as Louisiana diversifies its industry and demographics.

In addition, it's a popular tourist attraction, particularly around Mardi Gras, where visitors from all over come to investigate New Orleans and the surrounding areas. Short-term rentals do great here, as do long-term rentals for residents.


How to Apply for a DSCR Loan in Louisiana

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.

Submit Your Application With Credit Score

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.

Complete a Property Appraisal and Rent Schedule

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.

Calculate the DSCR Ratio

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.

Provide a Down Payment

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.




Best Areas for Investment Properties with a DSCR Loan: Louisiana

Investors love adding Louisiana to their real estate portfolio, as there are many up-and-coming cities throughout the 64 parishes that make up the state. These five are some of the strongest contenders based on population growth, average rents, and economic projections.


📍 Baton Rouge

Baton Rouge is a highly sought-after tourist destination with great restaurants and a vibrant nightlife. Commercial spaces cost about $19 per square foot, while apartments cost approximately $1,208 per month across all types.

📍 Shreveport

Quirky Shreveport is full of exciting attractions, which means that property types of all stripes will do well here. While not as large as Baton Rouge or New Orleans, it draws its fair share of tourists, indicating a strong need for restaurants, hotels, and other amenities. Average rent is cheaper than in larger cities, at around $972 per month; commercial rent is much lower at $14.44 per square foot, which indicates an excellent opportunity for investors to jump in while costs are low.

📍 Lake Charles

Lake Charles is known for gambling, tourism, and education, which indicates a great need for hotels and short-term rentals. Rents here are comparable to Shreveport at $987 per month despite having less than half the population, showing that investors can more than afford to gamble on this city.

Its commercial rental income is higher than that of larger cities at $21.37 per square foot in deference to its booming tourism industry, making it one of the most effective places to get DSCR loans in Louisiana.

📍 New Orleans

New Orleans is the cultural capital of Louisiana, known around the world for Mardi Gras and its rich history. Despite this, rent is affordable compared to other large cities across the US, at only $1,750 per month. There's a large discrepancy between retail and office rents, with retail being as high as $37 per square foot and office spaces netting only $19.19 per square foot.

📍 Marrero

Lastly, we come to blue-collar Marrero, known for its ample outdoor activities and breathtaking bayou views. Its residential rents are quite reasonable at $1,613, but the retail rents are quite shocking: currently, they stand at only $4.71 per square foot, making this a great place for younger investors.


Closed DSCR Loans Louisiana

Check out some of Visio Lending's recently closed DSCR loans in Louisiana.


Baton Rouge DSCR Loan


Baton Rouge, LA

  • $200,000 Loan Amount
  • Purchase
  • LTR 
  • DSCR: 1.43
Nola DSCR Loan


New Orleans, LA

  • $300,000 Loan Amount
  • Cash-Out Refinance
  • LTR
  • DSCR: 1.57
Nola STR


New Orleans, LA

  • $381,750 Loan Amount
  • Rate & Term Refinance
  • STR
  • DSCR: 3.16

Frequently Asked Questions

As the loan purpose is to invest in real estate, owner-occupied residences are not eligible for DSCR loans.

Loan amounts can go as high as $5 million, making Louisiana DSCR loans an excellent opportunity to invest in multiple properties.

Hard money lenders provide short-term loans backed by the property itself, making them suitable for real estate investors who are having difficulty covering their loans. DSCR loans in Louisiana are based on property income divided by debt service and are primarily used to purchase or refinance an investment.

map of Louisiana

Our DSCR Loans in Louisiana have:

  • · Full 30 year terms, no balloons for rental residential properties

  • · The ability to finance in an LLC

  • · No tax documents or personal income verification

  • · Real estate investor-friendly loan programs

  • · Interest only loan options


Contact Us to Start Your Loan