A $1.5M rental loan is unusual in Baton Rouge, and it is worth saying that up front. Most single-family rentals here are priced well below jumbo territory, so balances this large usually mean a newer 5-8 unit building, a top-tier home, or several properties at once.
In short: LendingStreet offers jumbo DSCR loans from about $1.5M to $5M+ for purchase, rate-and-term and cash-out on high-value 1-8 unit rentals, including in Baton Rouge. The loan qualifies on the property's rent with no W-2s or tax returns, but larger balances get more review and maximum LTV can be lower, depending on the program. In this market, investors with several mid-priced rentals are often better served by a blanket portfolio loan.
In higher-cost coastal metros, a single house can need a jumbo loan. In Baton Rouge, the properties that reach $1.5M or more are a short list.
Each of these gets underwritten differently, so tell us early which one you have. A newer building with signed leases is the most straightforward; a large single home is the hardest to make work on rent alone.
Sometimes, but the rent has to carry it. High-end homes in Baton Rouge rent for far less, relative to price, than a modest ranch home does. At jumbo balances, a single-family home often falls short of 1.0x even with a large down payment. Sub-1.0 DSCR programs exist, but you should expect to bring significant equity. Bring signed leases on comparable homes if you have them; those are hard for an appraiser to find on their own.
If you are set on a large home, compare the purchase price with what comparable executive homes have actually leased for in the last year. That gap tells you quickly whether a DSCR loan can work.
This example is illustrative and not a quote. An investor buys a newly built eight-unit building near LSU for $1,800,000. Units rent for $1,950 each, for gross rent of $15,600 a month. Taxes are budgeted at $1,520, insurance at $2,300 and flood coverage at $250 a month.
At 70% LTV, the loan is $1,260,000 and estimated principal and interest is about $8,810, for a total payment near $12,880 and a DSCR of about 1.21x. At 65% LTV the loan is $1,170,000, the payment is about $12,251 and the ratio improves to about 1.27x. Either way, the balance sits in jumbo range because of the building, not because local prices are high.
| Item | 70% LTV | 65% LTV |
|---|---|---|
| Loan amount | $1,260,000 | $1,170,000 |
| Estimated principal and interest | $8,810 | $8,181 |
| Taxes, insurance, flood | $4,070 | $4,070 |
| Total payment | $12,880 | $12,251 |
| DSCR at $15,600 gross rent | 1.21x | 1.27x |
If you own ten rentals in Baton Rouge worth $200,000 to $300,000 each, the combined value may be jumbo-sized, but a single jumbo loan is the wrong tool. A blanket portfolio loan puts five or more properties under one loan with one closing and one payment, qualifies on the portfolio's cash flow and includes release provisions so you can sell a house without refinancing the rest.
| Situation | Better fit |
|---|---|
| One 6-8 unit building over $1.5M | Jumbo DSCR loan |
| One high-end home over $1.5M | Jumbo DSCR loan, if rent supports it |
| Five or more mid-priced rentals | Blanket portfolio loan |
| Rentals in Louisiana and other states | Multi-state portfolio loan on some programs |
On jumbo files, expect deeper reserve requirements, a closer look at the appraisal and, on some programs, a second valuation. Maximum LTV is often lower than on a standard DSCR loan. The basics stay the same: a 620 minimum credit score, qualification on rent, LLC borrowers and 30-year terms available.
Plan for reserves equal to several months of payments, and possibly more on larger balances. That cushion protects you and strengthens the file.
On an eight-unit building or a large home, the insurance premium can be one of the largest lines in the payment. South Louisiana carriers weigh roof type, wind mitigation and flood zone heavily, and new construction often prices better. Property taxes start at 10% of market value for assessment, with no homestead exemption for an investor, and parish reappraisal every four years can move the number.
For a new building, ask the assessor how the completed property will be valued at the next roll. Budgeting on the finished value, rather than the vacant lot, keeps the ratio honest.
Jumbo DSCR loans can also refinance. An investor who built a small apartment building with construction financing can move to a long-term jumbo DSCR loan once it is leased, or pull equity later with a cash-out refinance. Cash-out leverage on large balances is usually below the 75% program maximum.
Rate-and-term refinances at jumbo size are reviewed the same way as purchases, using the building's leases and current expenses.
Large balances get a fuller review, so a complete package saves time. Plan on providing the items below, along with a short summary of your experience owning and managing rentals in the area.
LendingStreet reviews large rental loans across Louisiana. Our investor loans are business-purpose loans on non-owner-occupied property. Send the rent roll, price, insurance quote and target leverage through the form below, and we will tell you plainly whether a jumbo loan or a portfolio structure fits.
Roughly $1.5M to $5M+ on a high-value 1-8 unit rental, for purchase, rate-and-term or cash-out.
Not for single homes. In this metro, balances that large usually involve a 5-8 unit building, a high-end home or several properties.
It varies by program and is often lower than on a standard DSCR loan.
Sometimes, but rent rarely keeps pace with price at that level. Expect a larger down payment or a sub-1.0 program.
If you are financing five or more mid-priced rentals together, a blanket portfolio loan is usually the better fit.
No. The loan qualifies on the property's rent.
No. Our investor loans are business-purpose loans on non-owner-occupied property.
Once it is complete and leased, yes. Before that, construction or bridge financing is the usual path, followed by a DSCR refinance.
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