Louisiana DSCR Loans for STR Financing

Grow Your Portfolio with DSCR Loans

Whether you're purchasing STRs in New Orleans, long-term rentals in Baton Rouge, or investment homes in Lafayette, our DSCR loans  offer Louisiana investors asset-based financing with flexible terms. These loans use your property’s income to determine eligibility—no personal income documentation required. We assess whether your rental generates enough cash flow to support the loan, not your credit history. With high tourism and a strong rental market in key cities, Louisiana is ideal for short-term and long-term investment strategies. DSCR loans let you move quickly on opportunities and grow your portfolio with fewer restrictions, whether you’re just starting out or expanding aggressively.

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How to qualify

To obtain a quote, we will need the following information:

Property Value and

 Purchase Price


Down Payment

Amount


Credit Score



 Asset Types

  • Single Family Homes
  • Townhomes
  • Condos
  • 2 - 4 Units (Duplex, Triplex, Quadplex)
  • Multi-Family: 5 - 8 Units
  • Mixed-Use: 2 - 8 Units
  • Multi-Family: 9+ Unit



Loan Terms


  • Loan Sizes: $100k up to $3.5 Million (Larger loan sizes available on a case by case basis)
  • Purchase LTV: Up to 85%
  • Rate & Term Refinance LTV: Up to 80% 
  • Cash Out Refinance LTV: Up to 80%
  • Amortization: 30 Year % 40 Year Amortization Options Available
  • Term Lengths: 5/6 ARMs, 7/6 ARMs, 10 Year Interest Only, 30 Year Fixed & 40 Year Fixed
  • Floor Rate: 5.50% (subject to change daily due to market volatility)
  • Full Recourse with personal guarantee required for all borrowers with majority ownership (typically 20%+ or 25%+ if closing in an Entity)
  • DSCR Requirement: 1.00x or greater depending on loan size and property type. Sub-1.00x DSCR and NO DSCR options available.
  • Vesting: Lending to Individuals, LLCs, and Corporations. Trusts Allowable on a Case by Case Basis.
  • Average Time to Close: 14 to 35 days

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Frequently Asked Questions

What is a DSCR loan and how does it work for Louisiana real estate investors?

A DSCR loan (Debt Service Coverage Ratio loan) is designed to help investors qualify for financing based on the rental income generated by a property rather than personal income, W-2s, or tax returns. As long as the property's income covers the full debt service—including mortgage, taxes, and insurance—the loan may be approved. This type of financing is especially valuable in states like Louisiana, where investors target STRs in New Orleans or long-term rentals in Baton Rouge and Lafayette. DSCR loans allow borrowers to expand their portfolios without the constraints of traditional income verification.

How is DSCR calculated in a typical loan scenario for Louisiana investors?

DSCR in Louisiana is calculated by dividing a property’s net operating income (NOI) by its annual debt service. If a Louisiana rental brings in $96,000 in NOI and debt payments total $80,000, the DSCR would be 1.20. This means the property earns more than enough to cover its loan, which appeals to lenders. While a 1.00 DSCR is typically the minimum, many Louisiana lenders prefer higher ratios—especially for STRs in New Orleans or long-term rentals in Baton Rouge and Lafayette. Understanding DSCR in Louisiana helps real estate investors select properties with the right income profile to secure favorable financing and reduce risk.

What is considered a good DSCR ratio when applying for financing?

In Louisiana, a good DSCR ratio typically starts at 1.20. While most lenders will consider a minimum DSCR of 1.00, stronger ratios offer more favorable terms. A 1.20 DSCR in Louisiana signals that the property earns 20% more than it needs to service the loan, which reduces lender risk. Whether you're investing in New Orleans, Baton Rouge, or Lafayette, aiming for a higher DSCR improves approval odds and may result in better interest rates or reserve requirements. Understanding what makes a DSCR strong in Louisiana is key for real estate investors planning to scale their portfolios efficiently.

Can I qualify for a DSCR loan if my personal income is limited?

Yes, you can qualify for a DSCR loan even if your personal income is limited. DSCR loans, often referred to as Airbnb loans when used for short-term rental properties, are designed to approve borrowers based on the income the property generates—not personal W-2s, tax returns, or debt-to-income ratios. Lenders calculate the property's debt service coverage ratio to determine if the income is sufficient to support the loan. As long as the DSCR meets the required threshold—usually 1.00 or higher—you can often be approved regardless of personal income. This makes Airbnb loans ideal for self-employed investors, business owners, or anyone scaling a rental portfolio without relying on traditional underwriting standards.

How does a lender evaluate rental income when approving a DSCR loan?

In Louisiana, lenders approve DSCR loans based on the rental income a property generates, not your personal financial records. Louisiana investors can present lease agreements, vacation rental earnings, or appraiser rent estimates to show income. That income is used to calculate the DSCR by comparing it to the property's annual loan expenses. A DSCR of 1.00 or more is typically required. DSCR loans in Louisiana are popular among self-employed and multi-property investors. Understanding how rental income is evaluated in Louisiana ensures your property qualifies on its own merits, helping you expand your portfolio more easily.

What’s the minimum debt service coverage ratio required for approval?

In Maryland, most DSCR lenders require a minimum ratio of 1.00 to approve a loan, ensuring the property generates enough rental income to cover its debt obligations. In some Maryland cases, a DSCR of 0.75 may be considered, though that usually demands strong credit or reserve backing. A DSCR of 1.20 or more is often preferred in Maryland, particularly in markets like Baltimore or Silver Spring. DSCR loans in Maryland allow investors to qualify using property performance rather than tax returns. Understanding the minimum DSCR requirements in Maryland can help investors secure better loan terms and minimize underwriting issues.

Who should consider using a DSCR instead of a traditional loan?

These loans are perfect for self-employed individuals, LLCs, and investors managing multiple properties. In Louisiana, DSCR loans help borrowers qualify using rental income rather than personal tax returns or W-2s. From New Orleans to Baton Rouge, Louisiana investors choose this route to streamline financing and grow faster. DSCR lending in Louisiana fits well with STR and long-term rental strategies.

Expanding your rental portfolio beyond Louisiana? We also offer financing in Texas and Mississippi , making it easy to scale across the South with the same asset-based approval process.