HELOC Loans in Louisiana

Home Equity Line of Credit (HELOC)

Louisiana homeowners can use a HELOC (home equity line of credit) to access flexible financing backed by their home’s value. Whether you're upgrading property in New Orleans, managing debt in Baton Rouge, or funding tuition in Shreveport, a HELOC provides a revolving line of credit you can draw from as needed. These loans typically feature variable rates and interest-only payments during the draw period. Most Louisiana lenders require at least 15%–20% home equity and a credit score of 620 or higher. If you prefer a lump sum with fixed payments, a home equity loan may be more suitable. Borrowers can find competitive offers through local banks, credit unions, and online lenders.

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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 HELOC and how does it differ from a home equity loan?

A HELOC in Louisiana gives you access to a revolving credit line secured by your home’s equity. You can draw funds as needed during the draw period, while a home equity loan provides a one-time lump sum with fixed interest and monthly payments. HELOCs are ideal for ongoing or phased expenses, while home equity loans suit large, one-time costs. Choose based on your borrowing timeline and whether you want flexibility or predictability.

How do HELOC rates work and what affects the interest rate?

HELOC rates in Louisiana are typically variable and influenced by the prime rate. Your personal rate depends on credit score, income, equity, and loan-to-value ratio. Some Louisiana credit unions offer fixed-rate HELOCs or allow portions of the balance to be converted to a fixed rate. Compare APRs, draw terms, and fees to find the right product for your situation.

Can I qualify for a home equity loan in Louisiana with low credit?

Yes, it’s possible to qualify for a home equity loan in Louisiana with low credit if you have strong equity and steady income. Most lenders prefer scores above 620, but some may accept applicants in the 580–620 range with additional documentation.Regional credit unions in Louisiana may offer more flexibility than large national lenders. Be prepared for higher interest rates or lower loan limits if your credit is below average.

How much equity do I need in my home to get a HELOC?

In Louisiana, lenders typically require 15%–20% equity in your home to approve a HELOC. This means your total mortgage balance should be no more than 80%–85% of your property’s current value.Lenders also consider your credit score, debt-to-income ratio, and income stability. Homes in appreciating markets like Lafayette and Lake Charles may offer higher loan amounts due to increased equity.

Are home equity loans in Louisiana better for large expenses?

Yes, home equity loans in Louisiana are often the better choice for large, one-time expenses like home repairs, medical bills, or vehicle purchases. These loans offer a lump sum, fixed rate, and predictable monthly payments.For recurring or flexible spending needs, a HELOC may be more appropriate. Your decision depends on how much you need, when you need it, and whether payment stability is a priority.

What are typical equity rates and loan terms in Louisiana?

In Louisiana, HELOC APRs usually range from 7% to 10%, depending on your credit score, home equity, and chosen lender. These loans generally include a 10-year draw period followed by a 10- to 20-year repayment period.Home equity loans offer fixed rates and terms between 5 and 30 years. Louisiana lenders may also offer promotional rates, closing cost assistance, or discounts for automatic payments. Compare at least three offers to find the best option.

Looking beyond Louisiana? Explore HELOC options in Texas , Arkansas , and Mississippi...