Louisville has one of the largest collections of Victorian homes in the country, and many of the biggest in Old Louisville were split into apartments decades ago. Those buildings, along with larger homes in the Highlands, Crescent Hill and eastern Jefferson County, are where most jumbo rental loans here come from.
In short: LendingStreet finances jumbo DSCR loans from about $1.5M to $5M+ on 1-8 unit investment property in Louisville and Jefferson County and nearby Oldham and Bullitt counties, qualified on rent with no W-2s or tax returns. In this market a jumbo balance usually means several converted buildings, a portfolio or a large home in the east end. Louisville Metro regulates short-term rentals closely. Max LTV varies by program.
Old Louisville, south of downtown, is packed with large brick and stone Victorians, many divided into four to eight units that lease to University of Louisville students, hospital staff and downtown workers. The Highlands, Cherokee Triangle, Crescent Hill and Clifton have high-demand homes and small multifamily.
To the east, St. Matthews, Anchorage, Prospect, Norton Commons and Oldham County have newer and larger single-family homes.
| Property type | Typical areas | What drives the balance |
|---|---|---|
| Converted Victorian, 4-8 units | Old Louisville, Highlands | Combined rent and building condition |
| Large east-end home | Anchorage, Prospect, Norton Commons | Price vs rent; lower LTV common |
| Single-family portfolio | Germantown, Shively, south Louisville | Blanket loan on five or more |
Louisville prices are moderate, so most rental loans are well under $1M. Jumbo-size loans usually cover a pair of large converted Victorians, a portfolio of homes or a high-end property in the east end.
Old Louisville buildings carry character and strong rental demand, but also old systems, high ceilings and historic district rules that affect renovation and insurance.
East-end homes in Anchorage and Prospect lease to executives at the region's healthcare, logistics and bourbon companies. Those leases can be strong, but the tenant pool is small, so appraisers may look as far as Oldham County for comparable rents.
Louisville's UPS Worldport hub and the hospitals downtown also keep demand steady for the converted buildings closer to the city center.
Kentucky taxes property at full assessed value, and Louisville Metro, the state and school districts all levy. Overall rates are moderate compared with many states, but assessments can rise after a sale.
Kentucky charges a real estate transfer tax of $1 per $1,000 of value, customarily paid by the seller. Budget title, recording and lender costs on the buyer side.
Jefferson County's property valuation administrator reassesses on a rolling basis, so check the current assessment and whether the property was recently reviewed before you set the tax line.
Louisville sits on the Ohio River behind a floodwall and levee system, but some low-lying areas and properties near Beargrass Creek remain in mapped flood zones. Pull the flood determination early.
Historic preservation districts, including Old Louisville and Cherokee Triangle, require approval for many exterior changes, which can affect repair costs and timelines.
This example is illustrative and not a quote. An investor buys two large Victorians in Old Louisville, one with six units and one with seven, 13 apartments in all, averaging about $1,150 a month. The price is $1,950,000 and rent totals $14,950 a month. Taxes are budgeted at $1,800 a month and insurance at $1,400.
Run at 75% LTV, the numbers are a $1,462,000 loan, about $9,850 in estimated principal and interest, a total payment around $13,050 and a DSCR of about 1.15x. Run at 65% LTV, they become a $1,268,000 loan, about $8,543 in principal and interest, a payment around $11,743 and a DSCR of about 1.27x. The difference in cash needed is $194,000.
Each building is under nine units, so both stay residential. Insurance on large historic buildings tends to be higher per unit than on newer stock, so get a quote before setting the offer.
| Item | 75% LTV | 65% LTV |
|---|---|---|
| Loan amount | $1,462,000 | $1,268,000 |
| Estimated principal and interest | $9,850 | $8,543 |
| Property taxes (budgeted) | $1,800 | $1,800 |
| Insurance | $1,400 | $1,400 |
| Total monthly payment | $13,050 | $11,743 |
| DSCR at $14,950 rent | About 1.15x | About 1.27x |
| Down payment before costs | $488,000 | $682,000 |
Louisville Metro requires short-term rental registration, and non-host-occupied STRs in many residential zones need a conditional use permit, with limits on density. Rules have changed several times, so check current requirements for the address.
Kentucky Derby week and Bourbon Trail tourism drive short-stay demand, but most jumbo-size files here rely on long-term leases.
Loan size runs from about $1.5M to $5M+ for purchase, rate-and-term or cash-out on 1-8 unit rentals. Qualification is the property's rent against the full payment, with no W-2s or tax returns. The credit floor is 620, LLCs are standard and 30-year terms are available.
On a larger balance, plan for a lower maximum LTV than standard DSCR loans, a more detailed appraisal review and higher reserves. A ratio under 1.0x is not always the end of the file, since sub-1.0 programs exist, but leverage and pricing vary by program.
Two routes lead to a large residential balance besides one expensive house: a 5-8 unit building, qualified on all of its rent, or a blanket portfolio loan on five or more rentals with one payment and release provisions. Above 8 units in one building, the loan becomes commercial.
Louisville investors often combine single-family rentals in Germantown, Schnitzelburg and south Louisville with a converted Victorian or two in one blanket loan.
A large loan moves faster when the file is complete on day one.
To get a quote, share the property, the rent and the leverage you want using the form below, or call (877) 298-1001. Our team will show the ratio at a couple of loan sizes so you can pick the structure.
Yes, if the building has 1-8 legal units. It qualifies on combined rent. Nine or more units is a commercial loan.
Yes. Louisville Metro requires registration, and non-host-occupied STRs in many residential zones need a conditional use permit.
Customarily the seller. It is $1 per $1,000 of value.
On some blanket programs, yes. Multi-state portfolio loans can combine five or more rentals across state lines under one note.
Yes. Cash-out goes up to 75% LTV on standard programs and is often lower on large balances. Seasoning varies by program; see our cash-out seasoning guide.
No. Our investor loans are business-purpose loans on non-owner-occupied property. We do not finance a home you live in, full time or part time.
It depends on the appraisal, title and how complete the file is. Large balances take more review than standard loans, so starting with a full file is the best way to shorten the timeline.
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