DSCR loans in Louisiana qualify an investment property on its rent roll, not your W-2 or tax returns. Investors who buy and stabilize across Shreveport, New Orleans, and Baton Rouge use permanent DSCR debt to pull equity back out, add doors, or hold long-term after a rehab.
Louisiana DSCR loan parameters (2026)
| Parameter | Louisiana range |
|---|---|
| Rates | ~7.5%–10.5% (30-yr fixed or ARM) |
| LTV — cash-out | Up to 75% on stabilized rentals |
| DSCR minimum | 1.0–1.25 |
| Loan amounts | $125K–$2M |
| Property types | SFR, 2–4 unit, select condos and small multifamily |
Acquisition and rehab capital: hard money lenders Louisiana and fix and flip loans Louisiana.
How taxes shape Louisiana DSCR
The number that decides most Louisiana DSCR files is property tax: an effective rate of ~0.56% (low rate but homestead exemption does not apply to investors). On a $140,000 appraised value that is roughly $65/mo in the expense stack — understate it and the ratio fails at refinance even when rent looks strong. On the income side, Louisiana levies a state income tax (flat 3% (2025)), so newly flat, low state income tax.
Where DSCR clears: Louisiana metros
| Metro | Typical basis | Rent band | Local diligence |
|---|---|---|---|
| Shreveport | $140K–$220K | $1,050–$1,450 | lowest basis; cosmetic flips with 120-day targets |
| New Orleans | $240K–$380K | $1,600–$2,200 | shotgun-double rehabs with elevation/flood contingency |
| Baton Rouge | $200K–$300K | $1,350–$1,850 | suburban ranch flips with faster permit cycles |
Match the product to the rent roll — basis and rent diverge sharply across these metros.
Foreclosure and landlord law in Louisiana
Foreclosure in Louisiana is judicial — executory process foreclosure is comparatively fast for a judicial state. On the leasing side, no statewide rent control. Underwrite vacancy and turn times to the local ordinance, not a national average.
Insurance and local risk
Underwrite local risk honestly in Louisiana:
- Hurricane, flood, and elevation requirements — insurance can dominate the pro forma
- Rising premiums and carrier exits statewide
Worked example: Shreveport BRRRR-to-DSCR
- Acquire + rehab a value-add duplex in Shreveport with bridge capital (about $48,000 of scope)
- Stabilize at market rent — roughly $1,450/mo gross on a 12-month lease
- Appraisal at $140,000 post-rehab, supported by sold comps within 90 days
Monthly NOI sketch (Louisiana-realistic):
- Gross $1,450; vacancy 5% (−$72); effective $1,378
- Property tax $65 (~0.56% on $140,000), insurance $230, maintenance $154, management $116
- NOI ~$813/mo
That NOI supports cash-out to roughly 70% LTV ($98,000) at a 1.05 DSCR — debt service ~$728/mo, DSCR ~1.12. Pushing past 70% needs higher rent or a lower-tax submarket. Lower-basis metros in-state support more leverage.
Documentation Louisiana DSCR lenders expect
- Executed leases (12-month preferred) with deposit proof
- Insurance declarations at replacement cost (including flood where applicable)
- Entity documents — LLC operating agreement and EIN for vesting
- Trailing Louisiana property tax bill plus a stress buffer for reassessment
- Two months of rent-collection proof or a signed lease with first payment
- Rehab scope and draw history if exiting a BRRRR
Select programs allow limited seasoning when the rehab is documented — disclose the bridge payoff on the refi application.
Related Louisiana programs
- Hard money lenders Louisiana — bridge and BRRRR acquisition
- Fix and flip loans Louisiana — resale-focused ARV math
- What kind of loan do you need — product picker
Louisiana DSCR FAQ
What DSCR ratio do Louisiana lenders want?
Most Louisiana DSCR programs clear at 1.0–1.25 depending on LTV, credit, and reserves. With ~0.56% effective property tax in the expense line, the achieved ratio is sensitive to how honestly you model taxes and vacancy.
Can I refinance out of a Louisiana rehab with no seasoning?
Often yes — when the rehab is documented and the property is leased, select programs allow limited or no seasoning. Acquire with Louisiana hard money or fix and flip capital, then exit to DSCR once the rent roll is real.
Does Louisiana have rent control that affects DSCR?
No statewide rent control. Verify the rule for your specific Shreveport submarket before underwriting NOI.
Pre-Qualify for Louisiana DSCR · (833) 264-7776
Rates, terms and conditions offered only to qualified borrowers and are subject to change at any time without notice. All loans are subject to full underwriting. Jaken Finance Group only finances non-owner occupied investment properties.