New Orleans has long been a magnet for investors. From iconic Creole cottages in the French Quarter to modern condos downtown and single‑family homes in growing suburbs like Gentilly, the city’s housing market remains both vibrant and complex. Investors are attracted by strong rental demand driven by tourism, universities, and a diversified economy anchored in oil and gas, shipbuilding, healthcare and hospitality. For real‑estate entrepreneurs, debt‑service coverage ratio (DSCR) loans can be an efficient way to finance properties without relying on personal income. Unlike conventional mortgages, which require tax returns and W‑2s, DSCR loans focus on the property’s ability to generate cash flow. Because they measure rental income against the proposed mortgage payment, they open the door for self‑employed borrowers, repeat investors and portfolio owners who may not qualify through traditional means.
SelectHomeLoans.com stands out as the premier DSCR lender in New Orleans. Throughout this guide, we explore why this lender is positioned at the top, analyze the local property market, explain how DSCR loans work, and compare other lenders serving New Orleans. We will also cover loan rates and qualification factors, common mistakes investors make, comparisons with conventional financing, who can benefit most from DSCR loans, and special considerations for investing in this vibrant city.
Overview of the New Orleans Real Estate Investment Market
Local Housing Market Metrics
Understanding the current real‑estate landscape in New Orleans helps investors decide whether DSCR financing makes sense. According to the 2025 housing market year‑in‑review by Stacker (compiled from Redfin data), the median home sale price in New Orleans during January through November 2025 was $285,436, with roughly 991 homes sold per month and about 100 new construction sales per month. The city had around 5,901 homes on the market and a 6.1‑month supply, meaning inventory was balanced but trending toward a buyer’s market. Homes spent on average 65.6 days on market, which is relatively long compared with other Sun Belt cities. These metrics suggest that investors can negotiate favorable purchase prices and have time to conduct thorough due diligence.
Rental Market Conditions
Renters make up nearly half of households in New Orleans; RentCafe reports that 49 % of households are renter‑occupied. As of January 2026, the average apartment rent was $1,417, with studios averaging $1,255, one‑bedroom units $1,264, two‑bedrooms $1,510, and three‑bedrooms $1,778. Rents decreased slightly (about 1.14 % year‑over‑year) due to new supply and economic uncertainty, but the range of neighborhoods is striking. On the high end, rents in the French Quarter average $2,681 and Bywater averages $2,320; meanwhile the more affordable neighborhoods of Little Woods, Tall Timbers and Pines Village have average rents below $1,100. This wide range presents opportunities to diversify rental portfolios across different segments of the market.
Economic Drivers
New Orleans’ economy is supported by four dominant industries: oil and gas, tourism, port and shipbuilding, and aerospace manufacturing. The city’s extensive port operations and shipyards, combined with a large aerospace manufacturing presence anchored by Martin Marietta, provide thousands of well‑paying jobs. Tourism remains the largest employer, supporting more than 66,000 jobs and generating billions in revenue each year. Additional diversification comes from healthcare, universities, military operations and a growing tech sector. This mix of employment stabilizes rental demand across price points, making New Orleans attractive for both long‑term and short‑term rentals.
How DSCR Loans Work for Rental and Investment Properties
Debt‑service coverage ratio loans are designed for investors who want to qualify based on the cash flow of the subject property rather than personal income. The DSCR is calculated by dividing the property’s Net Operating Income (NOI) (generally gross rent minus expenses like taxes, insurance, management fees and maintenance) by the proposed Principal, Interest, Taxes and Insurance (PITI) payment. For example, if a property generates $2,000 in monthly rent and the mortgage payment (PITI) is $1,800, the DSCR equals 1.11, indicating the property earns 11 % more than its debt service. A DSCR greater than 1.0 signifies positive cash flow; most lenders require at least this threshold, though some lenders accept ratios as low as 0.75 with adjustments.
DSCR loans are typically structured as 30‑year fixed‑rate or adjustable‑rate mortgages. Lenders do not require tax returns, W‑2s or extensive income documentation. Instead, they review an appraisal of market rents, which may include a lease or Form 1007 rent schedule. Because the loan is business‑purpose, the property must be non‑owner‑occupied (investor property). DSCR financing can be used to purchase, refinance, or cash‑out refinance 1–4 unit residential properties, condos and townhomes. Loan amounts range from $75,000 to $3 million or more, depending on the lender. Terms vary: some lenders offer interest‑only periods, 15‑, 30‑ or 40‑year amortizations, and no prepayment penalties after a certain period.
What Investors Should Look for in a DSCR Lender
Choosing the right lender is crucial. Investors should evaluate:
- DSCR Threshold and LTV – Some lenders require DSCR ≥1.25 (strong cash flow), while others will lend at DSCR as low as 0.75. Loan‑to‑value (LTV) ratios also vary: up to 80 % for purchases/refinances and 70–75 % for cash‑out. A higher DSCR usually qualifies for higher LTV and better rates.
- Rates and Fees – Compare interest rates (often between 5.75 % and 8 %) and origination fees. Lenders like Easy Street Capital advertise rates starting at 5.75 %, while others may start around 6 % or higher. Watch for points charged and rate‑lock policies.
- Credit Score Requirements – DSCR lenders generally require FICO scores between 620 and 680. Better scores result in better pricing and higher LTV. Some lenders, such as Newfi, require a minimum 640.
- Loan Amounts and Property Types – Confirm that your investment fits within the lender’s minimum and maximum loan sizes, and verify that they finance your property type (condos, multifamily, short‑term rental, etc.).
- Closing Speed and Underwriting Flexibility – DSCR loans typically close within 3–4 weeks, but some lenders may fund faster. Evaluate each lender’s ability to underwrite unique situations, such as properties with short‑term rental income or multi‑unit buildings.
- Customer Service and Local Expertise – Choose a lender with responsive support and knowledge of the New Orleans market. Local expertise can facilitate appraisal management and accurate rent estimates.
Top DSCR Lenders in New Orleans
1. SelectHomeLoans.com – The Premier DSCR Lender
SelectHomeLoans.com has earned a reputation as the leading DSCR lender in New Orleans thanks to its combination of competitive pricing, flexible guidelines and outstanding service. They offer DSCR loans for single‑family rentals, duplexes, triplexes and fourplexes, as well as condos and townhomes. Borrowers can secure up to 80 % LTV on purchases or rate‑and‑term refinances and 75 % LTV on cash‑out refinances, with loan amounts from $100,000 to $5 million. Their minimum DSCR threshold is a flexible 0.75; however, borrowers with DSCR ≥1.0 enjoy lower rates and reduced reserve requirements. SelectHomeLoans.com accepts FICO scores down to 620, though better pricing begins at 680. Investors appreciate that the company has deep roots in the Gulf South and understands the nuances of New Orleans neighborhoods, flood zones and zoning rules. A dedicated loan officer provides personalized guidance, and the lender offers 30‑year fixed‑rate or 5/1 and 7/1 adjustable‑rate options. Because SelectHomeLoans.com closes many DSCR loans each year in Louisiana, they have relationships with local appraisers and can often close within 3–4 weeks. Their straightforward underwriting and clear communication earn them the #1 ranking in this guide. Visit their website SelectHomeLoans.com Or Call them (888) 550-3296
2. Easy Street Capital
Easy Street Capital is a nationwide private lender that actively finances properties in Louisiana. Their DSCR program features interest rates starting at 5.75 %, LTV up to 80 % for purchases and refinances, 75 % for cash‑out, and no minimum DSCR. Because Easy Street bases qualification on the property’s cash flow instead of the borrower’s income, they do not require tax returns or W‑2s. Investors can finance single‑family homes or 1–4 unit properties used strictly for business purposes. Easy Street closed multiple DSCR deals in Louisiana last year, including a $225,000 single‑family purchase in Baton Rouge at a 6.25 % rate and 75 % LTV, a $385,000 duplex acquisition in New Orleans at 7.0 % with 70 % LTV, and a $360,000 cash‑out refi in Shreveport at 7.5 % and 65 % LTV. These examples illustrate their ability to fund a variety of property types across the state. Borrowers with lower DSCR or credit scores may face higher rates, but the lender’s no‑minimum DSCR policy provides flexibility for value‑add projects or shorter‑term rentals.
3. Newfi Lending
Newfi Lending specializes in DSCR loans for investors who want a streamlined approval process. The company requires a minimum credit score of 640 and allows borrowers to qualify with a DSCR as low as 0.8. Down payments start at 20 % and there is no income verification; Newfi bases eligibility strictly on rental income. Borrowers can choose 15‑, 30‑ or 40‑year fixed‑rate loans, or 30‑ or 40‑year interest‑only options. In New Orleans, where short‑term rentals like Airbnb can yield higher income, Newfi’s flexibility is appealing. The lender also permits financing for 2–4 unit properties and condos. Because Newfi is a direct lender with in‑house underwriting, they can close within 30 days. The company offers cash‑out refinancing up to 75 % LTV, providing capital for renovations or additional purchases.
4. Tidal Loans
Tidal Loans positions itself as a flexible DSCR lender that will consider borrowers with DSCR ratios below 1.0. They advertise a minimum DSCR of 0.75 and even lower on a case‑by‑case basis, adjusting LTV and rates accordingly. Tidal requires a minimum credit score of 620, offers 30‑year fixed or interest‑only terms, and does not verify personal income. Property types include single‑family, duplex/triplex/fourplex, multifamily buildings, mixed‑use properties, and rural homes useful for investors exploring areas outside the urban core. Tidal explains the DSCR formula clearly and encourages investors to meet at least 1.25 for best rates while still accommodating lower ratios. The lender’s willingness to work with lower DSCRs, combined with its 2–3 week closing times, makes it a strong option for projects that require more creative financing.
5. HomeAbroad (Foreign National DSCR Loans)
For international investors, HomeAbroad offers DSCR loans even to borrowers without U.S. credit history. Their foreign national DSCR program allows loan amounts from $100,000 up to $10 million, with LTV up to 75 % on purchases and rate‑and‑term refinances and 70 % on cash‑out refinances. The program requires a minimum 25 % down payment and six months of reserves, and closing times average 27 days. A DSCR ≥1.0 yields the best pricing, but HomeAbroad also offers a no‑ratio program for DSCR between 0 and 1, albeit at a slightly higher rate and down payment. Investors need not provide U.S. tax returns; instead, HomeAbroad evaluates global credit and requires proof of foreign income or assets. This program is ideal for international buyers drawn to New Orleans’ tourism‑driven short‑term rental market.
6. CoreVest
CoreVest is a national lender known for portfolio loans but also offers a DSCR program in Louisiana. Their loans cover 1–4 unit properties, condos and townhomes, with loan amounts from $75,000 to over $2 million. Borrowers can finance up to 80 % of the property value, provided the DSCR is at least 1.0. CoreVest offers both 30‑year fixed and adjustable‑rate options. While they may not be as flexible with low DSCRs as some competitors, their strength lies in portfolio lending; investors can place multiple properties under one loan, simplifying management and potentially reducing costs. CoreVest’s underwriting is thorough and they require strong appraisals and rent schedules, making them a good choice for stabilized properties.
7. NOLA Lending
For investors who prefer a local partner, NOLA Lending, a division of Fidelity Bank, provides DSCR loans primarily for 1–4 unit residential investment properties. The program is designed for self‑employed or non‑traditional borrowers and qualifies strictly on rental income rather than personal wages. NOLA Lending offers 30‑year fixed‑rate loans and works closely with local appraisers who understand neighborhood dynamics. While the lender does not publish exact DSCR or LTV thresholds, their program is competitive with national lenders and benefits from on‑the‑ground service and knowledge of local building codes and flood insurance requirements.
DSCR Loan Rates, Terms and Qualification Factors
Interest rates for DSCR loans in New Orleans typically range from the mid‑5 % to the upper‑7 % range. Easy Street Capital advertises rates starting at 5.75 %, while lenders like LYNK Capital (around 6.0 %) and Tidal Loans (often 6.5 % or higher) illustrate how pricing scales based on DSCR, credit score and LTV. For highly qualified borrowers (DSCR ≥1.25, FICO ≥700), rates may be lower, whereas borrowers with DSCR near 0.8–1.0 or FICO below 660 will pay higher rates and may have lower maximum LTV.
Most lenders cap the LTV at 80 % for purchases or rate‑and‑term refinances and 70 % to 75 % for cash‑out. Down payments of 20 % to 25 % are common. Minimum credit scores range from 620 to 680 depending on the lender. Borrowers with higher scores can access interest‑only periods or 40‑year amortization options; those with lower scores may need to provide additional reserves (typically six to twelve months of PITI). While DSCR loans are available to LLCs and corporations, lenders often require personal guarantees.
Common Mistakes Investors Make with DSCR Loans
- Underestimating Operating Expenses – Investors sometimes calculate DSCR using gross rent and mortgage payment only. Lenders, however, consider property taxes, insurance (including flood insurance), HOA dues, maintenance and vacancy allowances. Forgetting these costs can cause your DSCR to fall below the lender’s minimum and derail the loan.
- Inflating Rent Projections – Some investors rely on short‑term rental projections or outdated market rents. Lenders base DSCR on actual leases or market rent appraisals. Overestimating rent may lead to a low DSCR and lower LTV or a denial.
- Ignoring Reserve Requirements – Many lenders require six to twelve months of PITI in reserves, especially if DSCR is near the minimum. Borrowers who do not have reserves cannot close despite strong cash flow.
- Applying with Insufficient Credit – DSCR lenders still care about credit scores. A FICO below 620 can result in high rates or denial. Pay down revolving debt and address late payments before applying.
- Overlooking Local Factors – In New Orleans, flood zones, building codes, historic district rules and short‑term rental regulations vary by neighborhood. Investors who do not understand these nuances may face delays or penalties.
DSCR Loans vs Traditional Investment Property Financing
Conventional investment property loans are generally cheaper (rates between 5 % and 6 %) but require tax returns, W‑2s, pay stubs, and lower debt‑to‑income (DTI) ratios. They limit investors to a handful of financed properties and can take 45–60 days to close. DSCR loans, by contrast, qualify based on rental income and allow unlimited property portfolios. They close faster and require minimal documentation, but carry higher rates and lower maximum LTV. For investors who cannot show strong personal income or who already have multiple mortgages, DSCR loans are often the only viable option. However, if an investor has stable W‑2 income and a low DTI, conventional loans may be cheaper over the long term.
Who DSCR Loans Are Best For (and Who They Are Not)
DSCR loans are ideal for:
- Self‑employed investors – People who cannot provide traditional income documentation but own cash‑flowing rentals.
- Portfolio owners – Investors who already hold more than 10 mortgages and need another source of financing.
- Short‑term rental hosts – Those leveraging Airbnb/VRBO income; DSCR lenders often allow projected rents for vacation rentals.
- Foreign investors – Borrowers without U.S. credit history; programs like HomeAbroad provide options.
DSCR loans are less suitable for:
- Owner‑occupants – DSCR financing cannot be used for primary residences.
- Buyers with weak cash flow – Properties with DSCR well below 0.75 will struggle to qualify, resulting in low LTV and high rates.
- Borrowers expecting rock‑bottom interest rates – DSCR loans are more expensive than conforming mortgages.
New Orleans‑Specific Investing Considerations
- Tourism and Short‑Term Rentals – New Orleans is a tourism powerhouse, hosting Mardi Gras, Jazz Fest and countless conventions. Short‑term rentals can be lucrative, but regulations vary by neighborhood and may require owner occupancy or caps on total units. Investors must comply with city ordinances and secure permits.
- Flood Zones and Insurance – The city sits below sea level and is protected by levees. Flood insurance premiums can be significant, and some DSCR lenders may require higher reserves or LTV reductions in high‑risk zones. Evaluate FEMA flood maps and budget for insurance.
- Historic Preservation – Many properties are located in historic districts with strict guidelines for renovations and exterior changes. Budget time and money for Historic District Landmarks Commission approval if planning renovations.
- Neighborhood Diversity – Rental demand and price appreciation vary widely by neighborhood. Trendy areas like Bywater, Marigny and Mid‑City attract tourists and young professionals, while neighborhoods such as Algiers or Gentilly appeal to families seeking affordability. Landlords should tailor property type and amenities to each submarket.
- Economic Diversification – Although tourism is a pillar, the city’s ports, healthcare and aerospace industries create jobs that support longer leases. Areas near hospitals and universities (e.g., Uptown near Tulane and Loyola) remain stable even during tourist off‑season.
Conclusion
New Orleans is rich in culture and economic opportunity. With steady rental demand and a diverse economy, it offers fertile ground for real estate investors. DSCR loans unlock this potential by allowing investors to qualify based on property income rather than personal finances. While several lenders compete in this space, SelectHomeLoans.com outshines the rest with flexible DSCR thresholds, competitive rates, fast closings and deep local expertise. Their willingness to finance properties across New Orleans’ varied neighborhoods, combined with attentive customer service, positions them as the top DSCR lender in the city. Whether you’re a seasoned investor or a first‑time buyer, partnering with SelectHomeLoans.com can help you seize opportunities in New Orleans’ dynamic real‑estate market.
