In Louisiana, insurance decides more large rental loans than any other number. Wind, flood and roof coverage on a $1.5M+ home in New Orleans or on the Northshore can outweigh the property tax bill several times over.
In short: LendingStreet offers jumbo DSCR loans of about $1.5M to $5M+ on high-value 1-8 unit rentals in Louisiana, qualified on the property's rent with no W-2s or tax returns. In Louisiana, jumbo balances usually come from Uptown and Garden District homes in New Orleans, Old Metairie, Mandeville and Covington on the Northshore, Baton Rouge and Lafayette, and portfolios or 5-8 unit buildings. Property is assessed at 10% of value, rentals do not get the homestead exemption, and hurricane and flood insurance drive the ratio.
In New Orleans, the Garden District, Uptown, the Audubon area, Lakeview and the Marigny have large historic homes and doubles that lease to medical, university and professional tenants. Old Metairie has larger homes on the east bank, and Mandeville and Covington on the Northshore attract families on long-term leases.
Baton Rouge's Garden District, University Club and the south side near LSU and the medical corridor have higher-value rentals. Lafayette has newer subdivisions in River Ranch and nearby, and Lake Charles is still rebuilding after the 2020 hurricanes.
| Area | What a jumbo balance usually buys | Main underwriting issue |
|---|---|---|
| New Orleans Uptown and Garden District | Historic home or several doubles | STR limits, flood zone, older systems |
| Old Metairie and Northshore | Family home on a 12-month lease | Flood insurance, wind coverage |
| Baton Rouge | Large home or 5-8 unit building | 2016 flood history, combined rent |
| Lafayette and Lake Charles | Portfolio of rentals | Hurricane repairs, insurance |
Louisiana's insurance market has been under strain since the 2020 and 2021 hurricanes, and several carriers left the state. Many owners end up with Louisiana Citizens or a smaller insurer, and flood insurance premiums have risen under the National Flood Insurance Program's newer rating method. On a large home, insurance can be the biggest line after principal and interest.
Get the full insurance quote, wind and flood, before you set your price or your leverage.
Louisiana assesses residential property at a 10% assessment ratio of fair market value, and parishes reassess on a four-year cycle. The homestead exemption takes the first $75,000 of value off an owner's home, but it does not apply to rentals, so an investor's bill can be noticeably higher than the seller's. Pull the parish assessor's record.
Louisiana does not have a statewide transfer tax, though Orleans Parish and some other parishes charge document or transaction fees. Closings are handled by a notary under Louisiana's civil law system.
Most of south Louisiana faces hurricane wind and flood risk. Flood insurance is generally required in mapped high-risk zones, and many lenders and investors carry it outside those zones too. The Louisiana Fortify Homes Program has offered grants for roofs built to FORTIFIED standards, and those roofs can earn insurance discounts.
This example is illustrative and not a quote. An investor buys an Uptown New Orleans home for $1,600,000 that leases for $10,200 a month. Taxes are budgeted at $1,350 a month. Wind, flood and liability insurance together run $1,550 a month.
At 70% LTV the loan is $1,120,000 and estimated principal and interest is about $7,640, for a total monthly payment of about $10,540 and a DSCR of about 0.97x. At 60% LTV the loan is $960,000, estimated principal and interest is about $6,549, the payment is about $9,449 and DSCR is about 1.08x.
Insurance costs more than taxes here, and both are higher than many investors expect from out of state.
| Item | 70% LTV | 60% LTV |
|---|---|---|
| Purchase price | $1,600,000 | $1,600,000 |
| Loan amount | $1,120,000 | $960,000 |
| Estimated principal and interest | $7,640 | $6,549 |
| Property taxes | $1,350 | $1,350 |
| Insurance | $1,550 | $1,550 |
| Total monthly payment | $10,540 | $9,449 |
| Monthly rent | $10,200 | $10,200 |
| DSCR | About 0.97x | About 1.08x |
New Orleans sharply limits short-term rentals in residential neighborhoods, and its rules have changed several times after court challenges. Plan on long-term leases for most Uptown and Garden District homes, and confirm current permit rules with the city.
Some programs qualify a short-term rental on projected revenue, where the property is allowed to operate. Lake and Gulf communities outside New Orleans each set their own rules.
A jumbo DSCR loan is the same rent-based loan investors use on smaller rentals, sized for higher-value property. The lender divides the monthly rent by the full housing payment: principal, interest, taxes, insurance and any HOA dues. The standard minimum is 1.0x, and sub-1.0 programs exist for some files.
What changes with size is the level of review. On larger balances, maximum LTV is often lower than the headline limits, reserve requirements are often higher and some programs ask for a second valuation. Exact limits vary by program.
Sometimes the better answer is a different structure. A blanket portfolio loan combines five or more rentals, each 1-8 units, under one loan with portfolio pricing and release provisions, and some programs allow properties in more than one state. A 5-8 unit building qualifies on combined rent and often shows stronger coverage than a single home at the same price.
If the ratio is close, a larger down payment or a sub-1.0 DSCR program may work. For 9+ unit buildings, see our commercial loans page.
These documents move a large file along:
Our investor loans are business-purpose loans on non-owner-occupied property. Tell us the address, price, rent and how much you want to borrow; the team will check coverage on realistic taxes and insurance and come back with options. Get a quote with the form below or call (877) 298-1001. For broader context, see our Louisiana DSCR loans page.
Hurricane and flood risk, and a strained insurance market. Get wind and flood quotes before you make an offer.
No. The $75,000 homestead exemption only applies to an owner's primary residence, so an investor's tax bill is usually higher than the seller's.
In most residential areas it is tightly restricted. Check current city rules; most large Uptown rentals run on 12-month leases.
No. DSCR loans qualify on the property's rent. Expect a credit check with a 620 minimum and verification of your down payment and reserves.
Yes, LLC ownership is routine on DSCR loans. Members usually sign for the loan personally, and we will review the operating agreement.
Yes. Cash-out is available up to 75% LTV, often lower at the top end, as long as the ratio works at the new payment.
No. Our investor loans are business-purpose loans on non-owner-occupied property, so the property must be a rental.
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