The shotgun double is the classic New Orleans rental. Two units side by side under one roof, often bought and renovated with short-term money. A DSCR rate-and-term refinance pays off that loan and qualifies on the rent from both sides.
In short: LendingStreet can replace the hard money, bridge or bank loan on a New Orleans rental with a DSCR rate-and-term refinance that is underwritten on the property's rent, not W-2s or tax returns. The minimum loan is $150,000, rate-and-term leverage runs up to 80% LTV on some programs (varies by program on 5-8 units), and the standard floor is a 1.0x DSCR with 620 credit. In New Orleans, most refinances are shotgun doubles and single-family homes, and wind and flood insurance plus the city's limits on whole-home short-term rentals shape the numbers.
New Orleans renters include hospitality and healthcare workers, students at Tulane, Loyola and UNO, and a large local renter population. Doubles and single shotguns in Mid-City, Gentilly and the Bywater are the core of the small-landlord market.
Many investors bought for short-term rental income before the city tightened rules and now operate on 12-month leases. Others are refinancing out of hard money after a renovation. Rate-and-term turns either into a 30-year payment based on long-term rent.
Each part of the metro has different flood risk, housing stock and rent levels.
| Area | Typical rental stock | Common refinance situation |
|---|---|---|
| Mid-City, Treme and St. Roch | Shotgun doubles and singles | Refinancing after renovation |
| Gentilly and the Seventh Ward | Raised and slab homes, doubles | Rate-and-term on a long-held double |
| Algiers and the West Bank | Single-family and doubles | Paying off rehab money |
| Metairie, Kenner and Chalmette | Postwar single-family homes | Replacing a bank balloon |
Rate-and-term is for replacing debt, not extracting it. The new loan pays off what you owe plus closing costs. Because no equity is being pulled, some programs allow up to 80% LTV, while cash-out tops out at 75% LTV. On 5-8 unit buildings and larger balances, the maximum can be lower and varies by program.
It fits New Orleans investors who want to get out of a short-term loan, fix a payment that is about to adjust, or clean up how title is held.
This example is illustrative and not a quote. A shotgun double in Mid-City was bought and renovated with a hard money loan, and both two-bedroom sides are leased for 12 months. It appraises at $395,000 and rents for $3,400 a month. The hard money loan balance is $265,000, with an interest-only payment of about $2,540 a month.
A rate-and-term DSCR refinance of $273,000 covers the payoff plus about $8,000 in estimated closing costs, roughly 69% LTV. Estimated principal and interest on a 30-year fixed loan is about $1,839. With taxes of $330 and insurance of $560, the monthly payment is about $2,729, for a DSCR of about 1.25x.
The new payment is about $700 a month lower than under the hard money loan, and it is fixed for 30 years instead of coming due. The ratio clears the 1.0x standard minimum.
| Item | Before (hard money loan) | After (DSCR refinance) |
|---|---|---|
| Loan balance | $265,000 | $273,000 |
| Monthly loan payment | $2,540 (interest-only) | $1,839 (est. principal and interest) |
| Property taxes | $330 | $330 |
| Insurance | $560 | $560 |
| Total monthly payment | $3,430 | $2,729 |
| DSCR at $3,400 rent | About 0.99x | About 1.25x |
| Loan term | Short term, comes due | 30-year fixed |
Your new loan size depends on the appraised value, and your ratio depends on the rent the appraiser supports. Lenders generally use the lower of the lease or market rent on many programs, so leases well above market may not count in full. In New Orleans, raised homes and renovated doubles compare best to similar doubles nearby, and flood zone and elevation can affect value.
Louisiana assesses residential property at a 10% assessment ratio. The Orleans Parish Assessor reassesses on a four-year cycle, and values can jump in a reassessment year. Rentals do not get the homestead exemption, so use the full bill.
Louisiana does not charge a separate mortgage recording tax, so closing costs are mostly title, recording, appraisal and lender fees.
Jefferson and St. Bernard parishes have their own assessors and millage, and Metairie, Kenner and Chalmette rentals often carry lower tax bills than comparable homes in Orleans Parish. The insurance line, however, is usually the bigger swing on either side of the parish line.
Insurance is a major cost after Hurricane Ida and several insurer exits from Louisiana. Most of the city is in or near a flood zone, and raised homes usually price better than slab homes. An elevation certificate can help the flood quote.
New Orleans does not allow whole-home short-term rentals in most residential districts, and residential STR permits require the owner to live on site. If you bought for nightly income, the refinance will likely be underwritten on long-term rent.
Historic districts overseen by the HDLC and the Vieux Carre Commission require approval for exterior work. Make sure renovations were permitted.
Jefferson Parish and St. Bernard Parish set their own short-term rental and permit rules, separate from the city, so confirm requirements with the parish for Metairie, Kenner or Chalmette rentals.
The cleanest refinances begin with a signed lease and 45 to 60 days of runway before the short-term loan matures. Seasoning requirements differ by program, so ask early whether the new loan can use the current appraised value. In New Orleans, that often means a double that was raised, rewired and re-roofed, then leased on both sides.
Get a quote through the form below or call (877) 298-1001. We finance business-purpose loans on 1-8 unit rentals across Orleans Parish plus Jefferson and St. Bernard parishes, and we will run your numbers at a few loan sizes so you can compare. A quick pass through our DSCR calculator with real taxes, insurance and any dues will show where the ratio lands before the appraisal.
Yes. Most refinances here use 12-month leases because the city limits whole-home STRs in residential districts.
It counts in the monthly payment. An elevation certificate and a raised home can lower the premium and raise DSCR.
Yes. A double is a two-unit property, and the loan qualifies on the combined rent.
Yes. We look at 1-8 unit rentals in Jefferson and St. Bernard parishes too.
No. DSCR loans qualify on the property's rent compared with the monthly payment, not on personal income.
If you own five or more rentals, a blanket portfolio loan can refinance them under one loan with one closing and one payment.
Rate-and-term reaches up to 80% LTV on some programs, but the maximum on 5-8 unit buildings is often lower and varies by program.
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