New Orleans has grand homes in the Garden District and Uptown, and blocks of shotgun doubles across the city. Insurance, flood elevation and the city's short-term rental restrictions shape every large rental loan here.
In short: LendingStreet finances jumbo DSCR loans from about $1.5M to $5M+ on 1-8 unit investment property in Orleans, Jefferson and St. Tammany parishes, qualified on rent with no W-2s or tax returns. New Orleans generally does not allow non-owner-occupied short-term rentals in residential neighborhoods, so most jumbo files here are underwritten on long-term leases, and flood and wind insurance often decide leverage. Max LTV varies by program.
The Garden District, Uptown, Audubon and the Lower Garden District have large historic homes. The Marigny, Bywater, Mid-City and Faubourg St. John have shotgun doubles and small multifamily.
Metairie in Jefferson Parish and Mandeville and Covington on the Northshore have larger suburban homes.
A shotgun double is two narrow side-by-side units under one roof, and many have been renovated. Camelbacks, which add a second story at the rear, are also common. Both are easy to underwrite as two-unit properties.
| Property type | Typical areas | Main cost issue |
|---|---|---|
| Historic home | Garden District, Uptown, Audubon | Insurance and rent support |
| Shotgun double portfolio | Marigny, Bywater, Mid-City | Number of buildings |
| Suburban home | Metairie, Mandeville, Covington | Flood zone and wind |
New Orleans has enough high-value homes that one house can need a $1.5M+ loan, but long-term rent rarely matches price. A portfolio of doubles usually qualifies more easily per dollar borrowed.
Tulane, Loyola and the medical district support steady demand in Uptown and Mid-City.
Many Garden District and Uptown homes have historic district rules that limit exterior changes, and old houses carry high maintenance and insurance costs. Those homes usually need lower leverage than a portfolio of doubles.
Louisiana assesses residential property at 10% of fair market value. The homestead exemption applies only to an owner's residence, so rentals pay on the full assessment. Orleans Parish reappraises every four years.
Budget taxes on your purchase price and current millage.
Jefferson and St. Tammany parishes have their own assessors and millage, and homes on the Northshore often carry lower tax bills than comparable Orleans Parish homes. Check each parish's assessor record.
Much of New Orleans sits below sea level behind levees, and flood insurance cost depends heavily on elevation. Hurricanes, including Katrina in 2005 and Ida in 2021, have shaped insurance pricing across the state.
Wind coverage, roof condition and elevation certificates are central to every quote.
Louisiana's insurance market has seen carriers leave and the state's Citizens plan grow. If a property is hard to insure in the private market, ask what the Citizens quote would be, and include it in the ratio before you make an offer.
Raised homes and homes outside the lowest-lying areas usually get better flood pricing, which can change the math meaningfully.
This example is illustrative and not a quote. An investor buys six shotgun doubles in Mid-City, 12 units in all, renting for about $1,600 each on long-term leases. The price is $2,200,000 and rent totals $19,200 a month. Taxes are budgeted at $2,500 a month and insurance at $2,800, plus $600 for flood insurance.
At 75% LTV the loan is $1,650,000. Estimated principal and interest is about $11,116, so the full monthly payment is about $17,016 and DSCR is about 1.13x. At 65% LTV the loan falls to $1,430,000, principal and interest to about $9,634, the payment to about $15,534 and DSCR rises to about 1.24x. The lower-leverage version takes $220,000 more cash at closing.
Insurance plus flood coverage is more than double the tax line here, which is typical in New Orleans.
| Item | 75% LTV | 65% LTV |
|---|---|---|
| Loan amount | $1,650,000 | $1,430,000 |
| Estimated principal and interest | $11,116 | $9,634 |
| Property taxes (budgeted) | $2,500 | $2,500 |
| Insurance | $2,800 | $2,800 |
| Flood insurance | $600 | $600 |
| Total monthly payment | $17,016 | $15,534 |
| DSCR at $19,200 rent | About 1.13x | About 1.24x |
| Down payment before costs | $550,000 | $770,000 |
New Orleans generally prohibits non-owner-occupied short-term rentals in residential zones, and its rules have changed several times after legal challenges. Commercial and mixed-use zones have separate permits.
If you want a short-term rental, look at parishes and towns elsewhere in Louisiana that allow them, and confirm local rules. Most jumbo files in Orleans Parish rely on long-term leases.
LendingStreet's jumbo DSCR programs cover balances from about $1.5M to $5M+ on 1-8 unit investment property. You can buy, refinance to a better structure or pull cash out, and the loan is qualified on the property's rent rather than your income documents. Credit starts at 620 and the borrower can be an LLC.
Expect more scrutiny as the number grows: a deeper appraisal review, more months of reserves and, often, a lower maximum LTV than on a standard DSCR loan. The 1.0x standard minimum DSCR still applies, and sub-1.0 programs exist for some files. Limits vary by program.
Residential DSCR financing covers buildings up to 8 units; 9 units and up is commercial (see /multifamily-loans.html). If you own five or more rentals, a blanket portfolio loan can put them under one closing and one payment, qualified on combined cash flow, with release provisions when a property sells.
New Orleans investors often combine doubles in Mid-City, the Marigny and Gentilly into a blanket loan once they own five or more.
Underwriting on a big balance goes smoother with these in hand.
Use the form below or call (877) 298-1001 with the property details and target loan amount. We will size the loan on the rent and show you where the ratio lands at different LTVs.
Non-owner-occupied STRs are generally not allowed in residential zones. Most loans here use long-term leases.
Flood, wind and the state's insurance market all push premiums up. Elevation is one of the biggest factors.
Yes, through a blanket portfolio loan on five or more properties.
On some programs a third-party projection of short-term rental revenue can stand in for a lease, but only where local permit, zoning and HOA rules allow the use.
At LendingStreet it is roughly $1.5M to $5M+ on a 1-8 unit rental. DSCR loans start at $150,000 with no stated maximum, and the larger balances get extra review.
You can lower the loan amount, add more down payment, or look at sub-1.0 DSCR programs, which exist for some files. Pricing and leverage on those vary by program.
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.
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