From New Orleans doubles to Baton Rouge and Lafayette single-family homes, Louisiana investors often start with short-term money. A DSCR rate-and-term refinance replaces it with long-term debt qualified on the rent.
In short: Yes, LendingStreet finances DSCR rate-and-term refinances on 1-8 unit investment properties in Louisiana, up to 80% LTV on some programs, qualified on the property's rent with no W-2s or tax returns. The new loan pays off your existing hard money, bridge or higher-rate loan plus closing costs, with only a small amount of cash back allowed on most programs. Our investor loans are business-purpose loans on non-owner-occupied property, starting at $150,000 with a 620 minimum credit score. In Louisiana, flood and wind insurance and the state's civil-law closing process are the items that set it apart.
A rate-and-term refinance pays off the loan you have now and replaces it with a new one, changing the rate, the term or both, without pulling out equity. The new balance usually covers the payoff plus closing costs, and most programs allow only a small amount of cash back at closing. The exact allowance varies by program.
Because you are not taking cash out, some programs allow a higher ceiling than a cash-out refinance, up to 80% LTV on some programs. Qualification runs on the debt service coverage ratio, the property's rent divided by the new monthly payment including principal, interest, taxes, insurance and any HOA dues. The standard minimum is 1.0x.
Louisiana rental stock includes shotgun doubles and raised cottages in New Orleans, ranch homes in Baton Rouge, Lafayette and Shreveport, and newer homes in suburban parishes. Investors buy with hard money, renovate and need to exit before maturity. Rate-and-term refinances also help investors swap a higher-rate loan for a fixed 30-year payment.
In each case the goal is the same: a stable, long-term payment the rent can carry, without raising the balance. Keeping the loan close to the payoff also leaves more room under the ratio if taxes or insurance rise after closing.
Hard money and bridge loans are built to be replaced. Once the rehab is done and the unit is leased, a rate-and-term DSCR refinance pays off the short-term loan and sets a 30-year payment. Start the refinance a couple of months before maturity so appraisal and title do not run up against the deadline.
If you bought recently, expect the lender to look at your purchase price and documented improvements, not just the new appraisal. Seasoning requirements differ by program, and they can change how much of the after-repair value you can use.
Louisiana uses a civil-law system, and mortgages are typically executed before a notary as part of the closing. Your title company or closing attorney will handle this, but it affects how documents are signed.
Louisiana has no state transfer tax or mortgage tax, though New Orleans charges a transfer fee on deeds. A standard refinance mostly involves recording, title, appraisal and lender charges.
Insurance is the line that decides most Louisiana DSCR files. Many properties need flood coverage, and wind and hurricane premiums have risen across the state, with some owners in the state's insurer of last resort. Get a current quote and an elevation certificate if the property is in a flood zone.
Louisiana's homestead exemption applies only to homes owners live in, so rentals pay full parish property taxes. Rates vary by parish, so use the actual bill.
This example is illustrative and not a quote. An investor owns a three-bedroom single-family rental in Baton Rouge appraised at $260,000. The existing hard money loan used for the purchase and rehab has a payoff of $188,000, costs about $1,720 a month interest-only and matures in 4 months. Rent is $2,000 a month, and taxes, insurance and any HOA dues run $520 a month.
Rolling about $6,500 of closing costs into the loan gives a new balance of $194,500, or about 74.8% LTV, inside the 80% ceiling some programs allow. On a 30-year term, principal and interest is about $1,343, so the full payment is about $1,863 and the DSCR is about 1.07x. The short-term maturity is gone and the payment is fixed. That ratio is close to the 1.0x minimum, so a higher insurance quote or tax bill could push it under; check both before you apply.
| Item | Amount |
|---|---|
| Appraised value | $260,000 |
| Existing loan payoff | $188,000 |
| Closing costs rolled in | $6,500 |
| New loan amount | $194,500 |
| Loan-to-value | 74.8% |
| Principal and interest (30 years) | About $1,343 |
| Taxes, insurance and HOA | $520 |
| Total monthly payment | About $1,863 |
| Monthly rent | $2,000 |
| DSCR | About 1.07x |
If you need equity out of the property, a cash-out refinance is the tool. If you only need to retire the existing loan, rate-and-term usually offers more leverage room and a lower balance.
The underwriting is the same, but the outcome is not. A larger cash-out balance raises the payment and lowers the ratio, so ask for both options on the same property and compare the payment, the DSCR and the cash you would net side by side.
| Feature | Rate-and-term | Cash-out |
|---|---|---|
| Purpose | Pay off existing loan and costs | Pay off loan and take equity |
| Maximum LTV | Up to 80% on some programs | Up to 75% |
| Cash at closing | Small allowance, varies by program | Up to the LTV limit |
| Minimum DSCR (standard) | 1.0x | 1.0x |
| Minimum credit score | 620 | 620 |
| Income documents | Rent only, no W-2s or tax returns | Rent only, no W-2s or tax returns |
New Orleans neighborhoods such as Mid-City, Bywater, Gentilly and the Seventh Ward have many doubles and small multifamily. Baton Rouge and Lafayette have single-family rentals and university demand. Shreveport-Bossier, Lake Charles and Houma offer lower prices. New Orleans restricts short-term rentals in most residential areas, so investment properties there usually qualify on long-term leases.
Having these ready keeps the appraisal, title and underwriting moving, especially if a short-term loan is nearing maturity. Call (877) 298-1001 or use the form below to get a quote.
Yes. LendingStreet refinances non-owner-occupied 1-8 unit rentals in Louisiana with DSCR loans starting at $150,000, up to 80% LTV on some programs.
Flood and wind premiums can be a large part of the payment, and the full premium counts in the DSCR. Get quotes before applying.
Most programs allow a small amount of cash back at closing, but the limit varies. Taking more turns the loan into a cash-out refinance, which has a 75% LTV ceiling.
New Orleans restricts STRs in most residential areas, so most investment properties there need long-term leases to qualify.
Seasoning varies by program. Recently purchased properties may be sized on purchase price plus documented improvements rather than the new appraised value.
Louisiana is a civil-law state, and mortgages are typically executed before a notary. Your title or closing team handles the details.
Standard programs need at least 1.0x. Sub-1.0 DSCR programs exist, or you can lower the balance by bringing cash to closing.
Yes. LLC borrowers are standard on DSCR loans. Expect to provide the operating agreement, articles of organization and an EIN letter, and to sign for the loan personally.
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