Areas We Serve
Griffin Funding serves all areas of Louisiana. So whether you are using a DSCR loan in New Orleans or St. Francisville, we have you covered. Here is just a handful of the areas we proudly serve:
- New Orleans
- Alexandria
- Bossier City
- Lafayette
- Metairie
- Madisonville
- Geismar
- Vienna
- Eden Isle
- New Orleans
- Baton Rouge
- Kenner
- Covington
- Lake Charles
- Elmwood
- Stonewall
- Benton
- Mandeville
What Is a DSCR Loan?
A Louisiana DSCR mortgage is a no-income loan for investors. Like bank statement loans and other non-QM mortgage loans, DSCR loans don’t require proof of personal income or job history because investors often have deductions that lower their taxable income. Since traditional loans don’t consider these deductions, tax returns and other proof of income documents don’t accurately reflect an investor’s true income.
Instead of income, lenders look at a borrower’s debt service coverage ratio (DSCR) to determine their ability to repay. A DSCR ratio is calculated by dividing the borrower’s gross rental income or cash flow by the total debt of the loan. Most lenders look for a DSCR of at least 1.25, but Griffin Funding offers flexible DSCR requirements. In some cases, we can even fund loans for borrowers with a DSCR below 1.0.
Louisiana DSCR Loan Benefits
DSCR loans in Louisiana are often easier to qualify for and offer faster time to close than traditional loans, making them ideal for new and veteran investors. The main benefit of DSCR loans in Louisiana is that there’s no pay stub or W2 requirement because lenders don’t verify your personal income; instead, your ability to repay depends on your possible cash flow.
Other Key benefits of Louisiana DSCR loans include the following:
- Loan amounts up to $20,000,000
- As little as 20% down
- Unlimited cash-out
- Flexible qualification requirements
- No limit on the number of properties
- Borrow in an LLC
- Long and short-term rentals are eligible
- Interest-only loan options
- No personal income verification
Who Qualifies for a DSCR Mortgage in Louisiana?
DSCR mortgage loans in Louisiana are a good option for investors who don’t qualify for traditional investment property loans based on their incomes but have significant cash flow. The most important qualification for the loan is a property’s DSCR, which will tell lenders whether you can repay the loan based on cash flow. DSCR lenders in Louisiana will each set their own criteria, but DSCR requirements typically range from 1.0 to 1.5.
With Griffin Funding’s DSCR loans, you can qualify with a DSCR below 1.0 under certain conditions. However, we recommend having a higher DSCR because it can reduce your interest rate. If you’d like to estimate your DSCR before applying, try using our free DSCR calculator.
- Down payment: In order to qualify for a DSCR mortgage in Louisiana, you must provide a down payment on the property you intend to purchase. Griffin Funding requires a minimum down payment of 20% for borrowers seeking a DSCR loan.
- Property types: DSCR loans can be used for residential investment properties, including single and multi-family homes, townhomes and condos, and short- and long-term rentals.
- Loan purpose: DSCR loans are home loans for investors only. With these loans, they can purchase or refinance investment properties; they’re not for primary residences.
What Credit Score Do I Need to Qualify for a DSCR Loan?
You can qualify for a DSCR loan with a credit score as low as 620. However, the minimum credit score depends on the Louisiana DSCR lender. At Griffin Funding, we allow credit scores as low as 620. However, the higher your score, the better the loan terms.
Keep in mind that the higher your credit score is, the better the loan terms will be. If you’re looking to monitor your credit and get tips on improving your credit score before applying, download the Griffin Gold app and begin building a plan to set yourself up for the best approval possible.
If you don’t qualify for a Louisiana DSCR loan, Griffin Funding may have other investment loan options for you, including traditional and non-QM mortgages. In addition, we offer several types of investment loans to help you find the right option based on your unique circumstances, including asset-based loans, bank-statement loans, and traditional mortgages. For example, our DSCR HELOAN (home equity loan) leverages the accrued equity in your existing property to help qualify for a loan on a new investment property.
How to Get a DSCR Loan in Louisiana
If you’re new to the concept of Louisiana DSCR loans, it all may be a bit daunting at first. But DSCR loans are actually a very straightforward, flexible alternative to traditional real estate loans. Here’s how to get started:
- Get familiar with the income property you are planning to purchase. You should know its location, size, number of units, and your income projections. When you apply, this information will help determine your DSCR and can build a stronger application for approval.
- Check your credit score. It should be at least 620 for the best chances of securing an approval. Of course, a higher score will always provide better approval terms.
- Make sure you have an available down payment of at least 20%. Your down payment requirement may be higher if you have a riskier credit profile or a lower DSCR.
- Complete a quick online application. One of Griffin Funding’s knowledgeable associates will reach out to walk you through the rest of the qualification process. The documentation you should prepare in order to streamline the process includes proof of your potential rental income, leases, and a rental analysis to help us determine your rental income and calculate your DSCR.
- After verifying your potential cash flow, we’ll calculate your DSCR and consider that alongside your broader financial profile. to ensure it’s over the 0.75 minimum threshold to qualify for the loan. Then, once you’re approved, you’ll see the loan amount and terms you qualify for and will be able to lock in your rate.
- Make an official offer on the property. You can work with your local real estate agent to make an offer on your preferred investment property.
- Get funded. Once the offer is accepted, your funds are disbursed and your real estate investment portfolio just expanded!
Apply for a DSCR Loan in Louisiana
With Louisiana DSCR loans, any investor can expand their portfolio. Even if you don’t qualify for a traditional investment loan, you can still purchase investment properties with DSCR loans. DSCR loans are ideal for new and veteran investors to help them start their next real estate project as fast as possible and begin turning a profit. In addition, with DSCR loans, you can qualify for a loan without income or job history verification.
Griffin Funding is a premier Louisiana DSCR loan lender and can help you throughout every step of the process. All we need is information about your business and the property to calculate your DSCR and determine your eligibility for the loan. If you qualify, we’ll lock in your interest rate. However, if you don’t qualify, we can discuss other investment loans that can help.
The only way to know whether you qualify for a DSCR loan in Louisiana is to start the application or contact us to get a quote. You can call Griffin Funding at (855) 394-8288 or begin our online application form.
Frequently Asked Questions
Is it hard to get a DSCR loan in Louisiana? 
One of the biggest benefits of DSCR loans in Louisiana is the flexibility it provides to investors when working with an experienced DSCR lender like Griffin Funding. As long as you can meet the basic requirements including meeting minimum credit score, down payment, and DSCR requirements, you could be well on your way to getting approved and locking in a competitive rate.
What is the current interest rate for a DSCR loan in Louisiana? 
There are several factors that contribute to the current DSCR loan rates in Louisiana. Things like the borrower’s financial profile (i.e. credit score, debt-to-income ratio, down payment amount, etc.), the property type, where it is located, and general market conditions can all impact the interest rate you may see.
Since interest rates vary based on the borrower and current market conditions, we encourage you to reach out to our team to learn more about DSCR loan rates in Louisiana.
What are the downsides of DSCR loans? 
Louisiana DSCR loans can be a fantastic financing option for those who struggle to get approved with a conventional mortgage loan. However, you should consider a few important notes before you jump into one.
- Higher interest rates: Though DSCR loan rates in Louisiana are competitive, they will typically be higher than the rates you would see for a conventional loan.
- Higher down payment requirements: A 20% down payment is the minimum requirement, which may be a hefty amount of cash to put down for certain borrowers, depending on the price of the investment property.
- Rentals only: DSCR loans in Louisiana can only be used for income-producing investment properties. You will not be able to use a DSCR loan to purchase a primary residence or a fixer-upper.