Areas We Serve
Griffin Funding serves all areas of Louisiana, including:
- Bossier City
- Baton Rouge
- Lake Charles
- New Orleans
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 income during tax season. Since traditional loans don’t consider these deductions, tax returns and other proof of income 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 will allow DSCRs as low as 0.75.
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. Key benefits of Louisiana DSCR loans include the following:
- Loan amounts up to $5,000,000
- As little as 20% down
- Unlimited cash-out
- Minimum credit score required
- No limit on the number of properties
- 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 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. Louisiana DSCR lenders 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 as low as 0.75. However, we recommend having a higher DSCR because it can reduce your interest rate. Other requirements of DSCR loans include the following:
- 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.
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.
How to Get a DSCR Loan in Louisiana
You can apply for a DSCR loan in Louisiana by working with a Non-QM lender like Griffin Funding. The approval process for DSCR loans in Louisiana begins with filling out an application. Since we look at your DSCR instead of personal income, we have a streamlined process that allows you to get funding for your next real estate project faster.
The most convenient way to apply for a Louisiana DSCR loan is by filling out an online application or calling us at (855) 394-8288. In the initial steps, we’ll ask you questions about your investment property, including its location, size, number of units, and income projections. The documentation you should prepare in order to streamline the process includes proof of your potential 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 to ensure it’s over the 0.75 minimum threshold to qualify for the loan. Then, once you’re approved, you’ll receive an estimate and can lock in your rate.
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.