The Best DSCR Lenders in Louisiana (Rental Property Loans) [2025 Guide]

Louisiana’s rich cultural heritage, vibrant music scene and deep roots in industries like oil and gas, shipping, health care, and tourism make it an attractive place to invest in residential rental properties. Investors are drawn to both New Orleans’ thriving tourist economy and smaller markets like Baton Rouge, Lafayette and Shreveport. Housing costs in Louisiana remain moderate compared with national averages: as of 2025 the average rent across the state was about $1,107, which means investing in income‑producing rental property can yield positive cash‑flow. However, securing traditional mortgage financing can be tricky for investors who have multiple properties or fluctuating personal income. This is where debt service coverage ratio (DSCR) loans shine.

A DSCR loan lets investors qualify based on the cash‑flow generated by the property rather than solely on their personal income or tax returns. In a state like Louisiana—where many investors are self‑employed, run seasonal tourism businesses or manage multiple rental units—DSCR loans can open doors to larger portfolios and faster growth. This comprehensive guide explains how DSCR loans work, summarizes key requirements for Louisiana, ranks the best lenders (with Select Home Loans firmly at the top), and shows you how to evaluate lenders and apply confidently.

What Is a DSCR Loan?

A debt service coverage ratio loan is a mortgage product designed for real‑estate investors. Instead of requiring detailed tax returns or W‑2s to verify personal income, the lender evaluates how well the rental income from a property covers the mortgage payment and associated debts. The ratio is calculated by dividing the property’s net operating income (rental income minus operating expenses) by the annual debt service (principal, interest, taxes and insurance). The New Silver guide to DSCR loans explains that the ratio formula is NOI ÷ debt service, and a ratio greater than one indicates that the income covers the debt. In other words, if a property generates more income than required to service its mortgage and expenses, it has a positive DSCR.

Lenders typically set minimum DSCR thresholds. A DSCR of 1.25 is often considered strong and can lead to favorable rates, while some lenders will allow DSCR as low as 0.75 but usually with higher down payments and interest rates. Griffin Funding notes that many lenders prefer a ratio of at least 1.25 but may consider values below one if the borrower makes a larger down payment. Constitution Lending’s guide says that a DSCR of 1.2 or higher qualifies borrowers for the best rates, though lenders like Constitution Lending will still accept 0.75 with compensating factors.

Advantages of DSCR Loans

Why choose a DSCR loan over traditional mortgage financing? The benefits include:

• No personal income verification. DSCR lenders qualify you based on cash‑flow, so you do not have to provide tax returns or pay stubs. This is ideal for self‑employed investors or those with multiple income streams.
  
• Ability to finance multiple properties. DSCR lenders often allow borrowers to hold unlimited financed properties. Griffin Funding notes that there is no limit on the number of financed properties for their Louisiana DSCR loans.
  
• Higher loan amounts. Some lenders offer loans up to $20 million for DSCR products, allowing investors to finance large portfolios or commercial‑scale projects.
  
• Fast approvals and streamlined documentation. Because lenders focus on the property’s cash‑flow, the underwriting process is more straightforward. Longleaf Lending advertises closing times as quick as two weeks for DSCR loans.
  
• Flexible borrower structures. Investors can often close in an LLC or corporation rather than in their personal name, allowing for liability protection and tax benefits. Griffin Funding’s program allows borrowers to hold property in an LLC.
  
• Interest‑only payment options. Some lenders offer interest‑only periods, reducing early cash‑flow burden and allowing investors to reinvest profits. Griffin Funding lists interest‑only payment options as a feature of their Louisiana DSCR loans.
  
• Unlimited cash‑out. DSCR loans often allow borrowers to refinance and take cash out up to high loan‑to‑value (LTV) ratios. Griffin Funding states that their program provides unlimited cash‑out.
  

These advantages make DSCR loans particularly appealing for Louisiana investors who may have high seasonal or variable incomes, want to expand their portfolios quickly or need flexible underwriting.

Louisiana DSCR Requirements and Market Insights

Before diving into lender rankings, it is important to understand typical DSCR loan requirements in Louisiana. Lenders evaluate both the property and the borrower. Key factors include:

• DSCR ratio. Most lenders in Louisiana want the property’s net income to cover at least 100 % of its debt obligation. Griffin Funding says their minimum DSCR is 0.75 but encourages borrowers to aim for 1.25. Longleaf Lending notes that typical DSCR requirements range from 1.0 to 1.2 but can be lower with sufficient compensating factors. Bayou Mortgage similarly explains that DSCR loans look for a ratio of 1 or more.
  
• Down payment and loan‑to‑value. DSCR loans generally require a down payment of at least 20 %, corresponding to an 80 % LTV. Griffin Funding states that Louisiana borrowers should expect to make a down payment of 20 % or more. Bayou Mortgage notes that typical LTV ratios range from 75 % to 80 %.
  
• Credit score. A minimum FICO of 620–660 is common. Griffin Funding says credit scores as low as 620 may qualify. Longleaf Lending requires at least 660. Bayou Mortgage indicates that scores around 680 are typical but lower scores may be accepted with higher rates.
  
• Loan amounts. DSCR loan sizes range widely. Longleaf Lending offers loans between $75,000 and $2 million for Louisiana investors. Griffin Funding states that their program can finance properties up to $20 million, though they also note a minimum loan amount of $100,000.
  
• Property type and occupancy. These loans are for non‑owner‑occupied investment properties. Eligible property types include single‑family homes, duplexes, triplexes, quadplexes, condos, townhomes and some multifamily. Griffin Funding’s Louisiana page lists single‑family, 1–4 unit, condos and townhomes as acceptable.
  
• Other documentation. While DSCR loans require less documentation than conventional mortgages, lenders will still ask for leases, rent rolls, operating statements and property appraisals to verify cash‑flow and value. Bayou Mortgage’s article states that DSCR loans require investors to provide rental income documentation and meet coverage ratio, LTV and credit score requirements.
  

These requirements ensure that the property can sustain its debt payments while offering investors flexibility. To maximize approval odds, aim for a DSCR above 1.25, a strong credit score and a 20 % down payment.

Ranking the Best DSCR Lenders in Louisiana

1. Select Home Loans – Best Overall for Comprehensive Service

Website: SelectHomeLoans.com

Phone: 888-550-3296

Select Home Loans tops our list because of its commitment to personal service and flexible terms tailored to Louisiana investors. This lender specializes in DSCR products and understands the unique challenges investors face in markets like New Orleans and Baton Rouge. The company offers competitive rates, 30‑year amortizing or interest‑only options, and the ability to close in an LLC. Borrowers praise their transparent underwriting and willingness to finance portfolios with multiple properties. Select Home Loans stands out because it provides an educational approach: loan officers help investors understand DSCR calculations, run cash‑flow scenarios and plan property acquisitions strategically.

2. Griffin Funding – Best for High‑Balance Loans

Griffin Funding operates nationwide and offers robust DSCR programs in Louisiana. Their loans have generous limits—up to $20 million—and allow DSCRs as low as 0.75. Investors can qualify even with multiple financed properties, enjoy unlimited cash‑out refinances and choose interest‑only options. Borrowers must meet credit score requirements (≥620) and can expect down payments of at least 20 %. Griffin Funding is ideal for experienced investors with large portfolios or those acquiring high‑value properties along the Gulf Coast.

3. Longleaf Lending – Best Local Private Lender

Based in the South, Longleaf Lending provides DSCR loans specifically for markets like New Orleans and Baton Rouge. Their program offers loan amounts between $75k and $2 million, LTV up to 80 %, and interest rates starting at 6.6 %. They underwrite DSCR ratios between 1.0 and 1.2 (with flexibility) and require a minimum FICO of 660. Closing can occur within two weeks, making Longleaf a good choice for investors who need quick financing. Their local knowledge of Louisiana’s neighborhoods and rental demand is an added advantage.

4. Bayou Mortgage – Best for First‑Time Louisiana Investors

Bayou Mortgage, headquartered in Louisiana, offers a DSCR loan program tailored to local real‑estate investors. The company explains that DSCR loans allow investors to qualify based on rental income and not personal income. To qualify, investors should have a coverage ratio of 1 or more, LTV between 75 % and 80 %, and credit scores of 680 or higher (scores as low as 620 may qualify but with higher rates). Bayou Mortgage is ideal for first‑time investors because their loan officers provide education about DSCR calculations and rental market analysis. They know the Louisiana market intimately and can recommend neighborhoods and property types with strong cash‑flow potential.

5. New Silver – Best for Streamlined Tech‑Enabled Lending

New Silver offers DSCR loans nationally and has an efficient online platform that reduces paperwork. The company states that DSCR loans allow investors to qualify without tax returns and that New Silver can sometimes issue loans with no minimum DSCR requirement. In Louisiana, their program offers 30‑year fixed or adjustable terms, interest rates starting at 5.875 %, LTV up to 80 % and loan amounts from $150k to $3 million. New Silver is a good fit for tech‑savvy investors seeking digital convenience and fast approvals.

6. Angel Oak – Best for Flexible Loan Structures

Angel Oak is known for its expansive portfolio of non‑QM (non‑qualified mortgage) products. Their DSCR loan program offers loan amounts up to $1.5 million with 40‑year interest‑only options, the ability to finance an unlimited number of properties and flexible underwriting. While they do not operate exclusively in Louisiana, investors can access their DSCR loans through national wholesale channels. Angel Oak is especially attractive if you need longer amortization periods or plan to hold properties long‑term.

7. Lima One Capital – Best for High DSCR Requirements and Investor Mentorship

Lima One Capital caters to experienced investors and emphasizes strong property cash‑flow. Their DSCR loans require DSCRs of 1.5 or more and a minimum FICO of 700. They offer 5‑, 10‑ and 30‑year terms, up to 75 % LTV and loan amounts between $75k and $3 million. Though their DSCR requirement is stricter, Lima One provides mentorship and project guidance that can benefit investors who value hands‑on support.

8. Truss Financial Group – Best for No‑Ratio Loans

Truss Financial Group offers DSCR loans nationwide with a unique twist: they also provide “no ratio” loans, which do not require evidence of rental income. Standard DSCR loans from Truss have 30‑year fixed rates, loan amounts between $100k and $3 million and flexible underwriting. This lender is suitable for investors who own properties with irregular or seasonal income or who are repositioning properties for short‑term rentals.

How to Choose the Right DSCR Lender in Louisiana

Selecting a DSCR lender goes beyond comparing rates. You must consider how each lender aligns with your investment strategy, property type and timeline. Here are key factors to assess:

1. Loan terms and flexibility. Evaluate available loan terms (30‑year fixed, interest‑only, adjustable) and choose one that fits your cash‑flow goals. Some lenders, like Angel Oak, offer 40‑year interest‑only options. Others, like New Silver, have 30‑year fixed rates with no prepayment penalties.
   
2. Minimum DSCR and credit score requirements. If your property’s DSCR is close to 1.0, select a lender that accepts ratios below 1.25. Griffin Funding and New Silver accept DSCR as low as 0.75, while Lima One Capital requires 1.5.
   
3. Loan amount and property type. Consider lenders’ minimum and maximum loan sizes. Longleaf Lending’s range of $75k–$2M may suit smaller rental properties, whereas Griffin Funding’s $20M cap is ideal for larger portfolios. Verify that the lender finances your property type (single‑family, multifamily, condos, etc.).
   
4. Closing timeline and service. If you need to close quickly, pick lenders known for fast turnarounds like Longleaf Lending (two weeks). Evaluate how responsive and supportive loan officers are—Select Home Loans and Bayou Mortgage excel at guiding first‑time investors.
   
5. Local expertise. Lenders with Louisiana market knowledge can help you assess rents, vacancy rates and regulations. Bayou Mortgage and Longleaf Lending have local branches and understand neighborhood dynamics.
   
6. Fees and interest rates. Compare origination fees, points and rate ranges. Longleaf Lending lists rates starting at 6.6 % with 1–3 points. Some lenders may charge higher points for lower credit scores or DSCRs.
   
7. Exit strategy support. If you plan to refinance or sell, check whether lenders allow interest‑only options or have penalties for prepayment. Griffin Funding’s unlimited cash‑out and interest‑only features provide flexibility.
   
8. Borrower structure. Confirm whether you can close in an LLC. Many lenders do, but some might require personal guarantees.
   

By analyzing these factors and comparing lenders’ strengths against your goals, you will choose the right partner for your Louisiana investments.

How to Apply for a DSCR Loan in Louisiana

Applying for a DSCR loan is simpler than applying for a conventional mortgage but still involves several steps:

1. Identify a suitable property. Research rental demand, local zoning rules, insurance costs and potential cash‑flow. Louisiana’s average rent of $1,107 suggests moderate cash‑flow potential. Consider markets like New Orleans (where short‑term rentals flourish), Baton Rouge (home to LSU and state government) or Lafayette (a growing economic hub).
   
2. Evaluate the DSCR. Estimate your property’s monthly rent and subtract estimated operating expenses to calculate net operating income. Then divide by the proposed mortgage payment (principal, interest, taxes and insurance). Aim for a ratio above 1.25 to secure better terms.
   
3. Gather documentation. Even though DSCR loans rely on cash‑flow, lenders need leases, rent rolls, property management agreements, bank statements and personal identification. Provide a property appraisal and evidence of property insurance.
   
4. Select a lender and pre‑qualify. Contact Select Home Loans or your chosen lender to get pre‑qualified. Provide basic property information, your credit score and details about your investing experience. Pre‑qualification helps you understand available terms and budget.
   
5. Submit a full application. Submit the formal loan application with supporting documents. At this stage, the lender orders an appraisal, reviews rent data and verifies DSCR.
   
6. Underwriting. The lender’s underwriting team analyses property cash‑flow, DSCR, credit, and reserves. They may ask for additional documentation (e.g., proof of rent deposits or updated leases). A high DSCR and good credit expedite this process.
   
7. Review terms and close. Once approved, review the final loan terms, including interest rate, fees, term length and any prepayment penalties. Work with the lender to schedule closing. Lenders like Longleaf can close in as little as two weeks.
   

By following these steps, you can secure financing quickly and start generating rental income.

Conclusion and Next Steps

DSCR loans are a powerful tool for investors looking to expand their rental property portfolios in Louisiana. By basing eligibility on the property’s cash‑flow rather than the borrower’s personal income, DSCR financing opens doors for self‑employed investors and those with multiple properties. Lenders evaluate DSCR, credit, down payment, and property type. To secure the best terms, aim for a DSCR above 1.25, a credit score above 680, and a down payment of at least 20 %. Among the lenders reviewed, Select Home Loans stands out for its comprehensive service, competitive rates and deep understanding of Louisiana’s real‑estate market. Whether you are a first‑time investor or a seasoned professional, DSCR loans can help you unlock growth and achieve financial freedom.