Longleaf Lending Louisiana DSCR Loans

DSCR Loans in Louisiana:
Modern Financing for Investors

Veteran-owned lender, offering investors DSCR Loans in Louisiana for no-income-verification, hassle-free long-term financing.

Modern, long-term financing solutions

Why Choose Longleaf Lending for Your Louisiana DSCR Loan Needs

Crafted with savvy Louisiana investors in mind, our Long-Term DSCR Loans enable wealth building through a diverse portfolio of rental properties. By prioritizing your investment property's rental income and cash flow metrics, we simplify the loan process. As a top DSCR lender, enjoy competitive interest rates starting at 6.5%.

No Income Verification
Our no-income-verification process eliminates traditional barriers, focusing on your investment's cash flow to qualify you for a loan. This DSCR-centered approach ensures a hassle-free experience, catering specifically to real estate investors' unique needs.
Tailored to Investment Goals
Whether you're investing in short-term vacation rentals or long-term leases, our DSCR loans are crafted to align with your strategic investment plans. This versatility ensures that whatever your goals, our financing solutions fit perfectly.
Efficiency and Speed
At Longleaf Lending, we value your time. Our Louisiana DSCR loan application and approval processes are optimized for efficiency, ensuring quick, smooth progress from your initial application to the final funding.
Adaptive Financing Solutions
Our financing options are as diverse as the properties you invest in. We're committed to offering flexible DSCR solutions that accommodate a wide range of property types and investor profiles.

Fast and simple

How Longleaf Lending's DSCR Loans Work

DSCR (Debt Service Coverage Ratio) loans are a type of financing used by real estate investors that focus on the income generated by the property rather than the personal income of the borrower. Here’s a simplified explanation:

Calculation.
The DSCR is calculated by dividing the property's Net Operating Income (NOI) by its total annual debt payments. NOI reflects the positive cash flow from the property after operating expenses (mortgage payment, taxes, and insurance) are subtracted.
Criteria for approval.
For Louisiana, we typically require a DSCR greater than 1.0, indicating the investment property generates sufficient cash flow to cover its debt obligations. A common threshold is a DSCR of 1.0 to 1.2 or higher, but it is possible to go lower.
No personal income verification.
The approval process emphasizes the property’s cash flow potential, not the borrower's personal financial situation, allowing for more accessible financing for investors.
Craftsman house

DSCR Loan Terms

Get the financing you need to build wealth with real estate in Louisiana using our DSCR long-term 30-year investor loans.

Terms current as of July 14, 2024

Long Term Rental Loan
Loan Value:
$75,000-$2,000,000
LTV:
Up to 80% (as is)
Interest Rate:
Starting at 6.5%
Points:
2-3
Term:
30 years
Closing Time:
As fast as 2 weeks
FICO:
620 minimum

DSCR Loan Requirements Simplified

Understand DSCR Loan Louisiana Requirements

Securing a DSCR Loan in Louisiana involves a focused evaluation of your experience, liquidity, credit score, and investment property's income potential. Here's a summary of the current requirements you should know before applying for a DSCR Loan in Louisiana:

DSCR Calculation:
Minimum of 0.65x
Credit Score:
620 minimum
Loan Amount:
$75,000 to $3 million
Investor Experience:
none required
US Citizenship:
not required
Documentation:
Some of the key required documents include personal ID, bank statements, entity documentation if using a company (operating agreement, EIN letter, articles of incorporation), lease agreement (if currently leased), appraisal (requrested by us), and the purchase HUD (if purchased in the last 12 months).
Occupancy:
Short or long-term rentals, vacant or occupied
Property Type:
SFR, 2-4 units, multifamily 5+ units, mixed use, or commercial
DSCR Loan Louisiana requirements

Designed for Louisiana investors

Build wealth through real estate with our DSCR Loans in Louisiana

Louisiana's Real Estate Potential: Ideal for 30-Year Rental and Long-Term DSCR Loans

Louisiana long term rental property loans

Louisiana's real estate market, with its rich cultural heritage, diverse economy, and unique geographic features, presents a vibrant landscape for investors. From the historic and bustling streets of New Orleans to the industrial hubs of Baton Rouge and the serene landscapes of the Bayou, Louisiana offers a range of opportunities for real estate investment. DSCR loans in Louisiana provide a strategic financing option for investors looking to leverage the state’s varied real estate offerings.

Why DSCR Loans Are Suitable for Louisiana’s Real Estate Market

DSCR loans are especially fitting for the Louisiana market due to several factors:
  • Economic Diversity: Louisiana’s economy is fueled by a mix of tourism, energy, agriculture, and manufacturing, supporting a stable demand for rental properties across the state.
  • Unique Investment Opportunities: The state’s real estate market is known for its unique properties, from historic homes in New Orleans to waterfront properties along the Gulf Coast, offering niche investment opportunities.
  • Simplified Financing: By focusing on the income potential of the property rather than the personal income of the investor, DSCR loans simplify the financing process, allowing for quicker and more efficient property acquisitions.

Strategic Advantages of SFR Investments in Louisiana

Investing in Single-Family Residential (SFR) properties in Louisiana comes with several strategic advantages:
  • Varied Tenant Base: Louisiana attracts a wide range of residents, including professionals working in the state’s industries, students attending its universities, and tourists looking for long-term stays, ensuring a consistent demand for rental properties.
  • Resilience and Recovery Potential: Louisiana's real estate market has shown resilience in the face of economic and natural challenges, offering potential for recovery and growth in property values over time.

Maximizing Investment with Louisiana DSCR Loans

DSCR loans in Louisiana offer investors the opportunity to maximize their real estate investments through:
  • Portfolio Diversification: The ability to finance a variety of property types and investment strategies allows investors to diversify their portfolios, reducing risk and increasing potential returns.
  • Efficient Market Entry and Expansion: The streamlined approval process for DSCR loans enables investors to quickly enter the Louisiana market or expand their holdings, taking advantage of timely investment opportunities.
Louisiana’s real estate market, characterized by its cultural depth, economic diversity, and unique properties, offers fertile ground for investors. DSCR loans provide the necessary flexibility and efficiency to navigate this market successfully, enabling the acquisition of properties that cater to a broad tenant base and have the potential for significant returns. Whether targeting the vibrant urban centers or the tranquil rural areas, DSCR loans offer a pathway to achieving investment success in the Pelican State.

Louisiana DSCR Loan frequently asked questions

How is DSCR Calculated in Louisiana?

How is DSCR calculated in Louisiana?

In Louisiana, the Debt Service Coverage Ration (DSCR) is calculated by dividing a property's rental income by it's expenses. In some cases another method could be used which involves dividing Net Operating Income (NOI) by the Debt Service.

Income: For simplicty purposes, you can think about the top line as the annual rental income for your investment property. In some cases a 90% factor might be applied.

Expenses: There are four main components of the expenses.

  • Principal and Interest
  • Taxes
  • Insurance
  • HOA fees

Here's an example so you can see exactly how DSCR is calculated. To keep things easy, we are assuming there is no principal payment, which you might expect with an interest only period. To learn more about how DSCR loans work, check out our detailed article.

How is DSCR calculated in Louisiana?

About the Longleaf Lending Team

Longleaf Lending is a veteran-owned, direct lending firm with a deep focus on the real estate market. Established in Texas, we bring over two decades of combined experience in real estate, hard money lending, and investment banking.

Funding Experience

Since 2018, we have funded over 600 hard money loans, totaling more than $125 million in loan value.

Expert Leadership

Our leadership includes co-founders Pete Underwood and Matt Weidert, who bring extensive experience from real estate investment, investment banking, and military service.

Commitment to Innovation

We are committed to providing innovative real estate solutions, with a strong focus on integrity and professionalism as a member of the American Association of Private Lenders.

For more about our journey and the dedicated team behind Longleaf Lending, visit our full About Us page.

Explore other Louisiana DSCR markets

Submit your Louisiana loan request today

Start your DSCR Loan funding today

Ready to propel your Louisiana rental project forward? Our simple loan request process is designed to get you the funding you need quickly and efficiently.

How the DSCR funding process works with Longleaf Lending

Submit our Online Form

Begin by filling out our short form. It's straightforward and only takes a minute. Provide us with some basic information about you and your project.

Get a Term Sheet in less than 24 Hours

After submitting your form, you'll receive a detailed term sheet from us within 24 hours. This term sheet will outline the terms of your loan and give you the confidence to proceed with your project.

Get Funded

Experience fast and straightforward funding. At Longleaf Lending, you'll work directly with our team throughout the entire process, from application to funding.

Applying does not affect your credit score

Apply for a Louisiana DSCR Loan in 60 Seconds

Begin the funding process by completing our short online form.