The Quick Read: To qualify, the property’s rent has to cover its full monthly obligation (principal, interest, taxes, insurance and any HOA dues), and the borrower has to clear the size-based overlays on credit, reserves and leverage. Louisiana does not change those mechanics, but its insurance and flood costs sit inside the ratio and can move the loan amount.
- Rent divided by the full monthly obligation sets the coverage ratio. A 1.00 ratio is the floor on select programs.
- Leverage steps down as the balance climbs, with the highest leverage on smaller purchases and loans at the top of the range reviewed case by case.
- Credit is 660 at the floor and 700 above $3,000,000. Reserves are typically six months on the subject property.
- Two appraisals are required above $2,000,000. Cash-out ends above $3,000,000.
- Louisiana insurance and flood premiums are the local swing factor in the ratio.
All figures here are ceilings through select wholesale programs, subject to underwriting. Nothing here is a commitment to lend.
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Rate source: Freddie Mac 30-yr average via FRED® — Federal Reserve Bank of St. Louis · effective Oct 15, 2026
Prefilled with starting assumptions — enter your own rent or nightly figures, taxes, insurance, and HOA for a more accurate picture.
Program parameters update from Lendmire’s centralized guideline source. Taxes and insurance are editable estimates.
As of Oct 15, 2026 · General Freddie Mac market benchmark, not a Lendmire loan offer. Rent, nightly rate, occupancy, taxes, and insurance are editable estimates. Short-term rental figures are estimates only and vary significantly by season, property type, management approach, and local short-term-rental rules — confirm local regulations before relying on them. Qualifying income for short-term rentals varies by program — some use appraisal market rent, others use documented STR history or projections — and is confirmed in underwriting. Not a Loan Estimate, approval, or commitment to lend. Program availability and eligibility are subject to lender guidelines, credit approval, property review, and underwriting.
What Makes a DSCR Loan “Super Jumbo”?
“Jumbo” has an official line. “Super jumbo” does not. The Federal Housing Finance Agency sets the conforming loan limit each year, and the 2026 one-unit baseline is $832,750 with a high-cost ceiling of $1,249,125, a figure confirmed in a law-firm summary of the announcement. That limit governs what the agencies may buy. DSCR loans sit outside it, so it is only a reference point.
Across the wholesale network, “super jumbo” is a lender tier, not a legal term. In practice it means balances above $3,000,000, where the standard DSCR program stops and a portfolio investor program takes over. That program runs from $150,000 to $10,000,000. Louisiana has no separate rulebook for it. The loan is business-purpose financing for non-owner-occupied investment property, and it is reviewed differently from a standard owner-occupied mortgage.
How Does the Coverage Ratio Work at This Size?
The coverage ratio is monthly rent divided by the full monthly obligation. The obligation covers principal, interest, taxes, insurance and HOA dues, which investors call PITIA. A ratio of 1.00 means the rent exactly covers the payment. Below 1.00 is a shortfall. An educational explainer on debt service coverage describes the same idea.
Keep two definitions apart. Commercial lending uses net operating income over debt service and often cites a 1.25 benchmark, as one commercial explainer notes. Residential investor DSCR runs on rent over PITIA, and 1.00 earns full leverage on most files.
The rent figure comes from the appraisal’s rent schedule, or from a lease where one exists. Single-family files use the 1007 rent schedule. Two-to-four-unit files use the 1025. On a vacant or newly acquired property there is no lease, so the appraiser’s rent opinion carries the file.
Here is how it plays out. Say a luxury rental clears roughly 1.15x on the first pass. The investor then gets a fresh insurance quote that adds a flood policy. The ratio slips toward 1.00, and the file now has no cushion. The fixes are mechanical: a lower loan amount, a larger down payment, or a different rent basis.
Some select programs review coverage from 0.75 to 0.99 at balances up to $2,000,000. LTV and terms adjust, subject to underwriting. At the largest sizes, leverage, credit and reserves usually bind before the ratio does.
What Are the Requirements at Each Loan Size?
Requirements tighten as the balance rises. The table shows the best available leverage in each band at a 1.00 coverage ratio or higher, through select wholesale programs, subject to underwriting.
| Loan size | Purchase / rate-term | Cash-out | Credit for this leverage |
|---|---|---|---|
| $150K–$1M | 80% | 75% | 660+ |
| $1M–$1.5M | 75% | 70% | 700+ |
| $1.5M–$3M | 75% | 60% | 720+ |
| $3M–$4M | 65% | — | 700+ |
| $4M–$10M | 60% on review | — | 700+ |
Read the credit column carefully. It shows the score that band’s top leverage needs. It is not the program floor. The floor is 660, and 700 above $3,000,000 is the only floor that changes with size. A lower score takes a lower leverage cell in the same band.
Above $4,000,000, every request is reviewed case by case before submission. Those are purchase or rate-and-term files only.
Other overlays that matter at this size:
- Reserves: typically six months of PITIA on the subject property, twelve for first-time investors. Cash-out proceeds never satisfy reserves above $3,000,000.
- Appraisals: two are required above $2,000,000.
- Super jumbo overlay: above $3,000,000, expect 0x30x24 housing history, 48-month seasoning after credit events, citizens and permanent residents only, no rural property, and ten acres maximum.
- Portfolio size: up to 20 financed properties.
How Do Interest-Only and Cash-Out Change the File?
Interest-only is the runway feature for high-balance rentals. Many programs offer a 120-month interest-only period on 30- and 40-year terms, up to 75% leverage. The file is qualified on interest, taxes and insurance (ITIA) rather than full principal and interest. Coverage of 0.75 or better applies on that path, subject to underwriting. Terms vary by lender guidelines, property type, leverage, credit profile, and full file review.
Cash-out follows its own ladder. Proceeds are unlimited at or below 60% LTV. Above 60% there is a $1,500,000 cap. There is no cash-out above $3,000,000, and none for credit of 680 and below on balances above $1,500,000. Investors who plan to pull equity at the top of the ladder usually find that the answer is a rate-and-term refinance instead. The DSCR cash-out refinance page covers the lower tiers.
What Does Louisiana Change?
Louisiana changes the cost side of the ratio. The rent test is the same as everywhere else. The payment side is heavier.
Steadily is an insurer, so treat its figures as indicative. It reports Louisiana landlord insurance as the most expensive in the country, with a median near $2,561 a year. Other estimates run roughly $2,200 to $2,900 on average, varying by source and property. Property tax sits in the low tier and partly offsets that.
Insurance goes straight into PITIA. For the same rent, a higher premium means a lower ratio. At super jumbo size, small changes in either move the allowable loan amount a lot. A sample Shreveport deal in the same source showed a coverage ratio of 1.05 and cash-on-cash of just 1.1%. Thin cushions are normal here.
Flood is the second layer. FEMA’s FloodSmart explains that flood insurance is required in a Special Flood Hazard Area when the mortgage is government-backed, and that some lenders require it even outside high-risk zones. DSCR loans are non-agency, so the federal mandate may not apply directly. Many programs ask for flood coverage anyway, so confirm the requirement with the lender early.
Two more points:
- Zone, not distance. The trigger is the FEMA map, not how close the property sits to water. A Letter of Map Amendment can remove the requirement for a mapped property, using an elevation certificate.
- NFIP caps. Standard NFIP building coverage is capped at $250,000, per a coverage education site. On a multimillion-dollar property, excess private flood coverage may be needed, and that premium sits in the ratio too.
On wind, a Louisiana FORTIFIED roof can lower the premium, according to a Baton Rouge real estate blog. State data on homeowners rates show stabilization, from a 14% average increase in 2023 to 0.1% so far this year per Yahoo Finance. That is homeowners data, not landlord data. Stable is not the same as low.
Where Does the General Rule Break?
Short-term rentals. These carry a lower cap. Loan amounts run to $2,000,000, and coverage of 1.00 or higher is required. Income is counted at 80% of gross. It comes from twelve months of operating history on a refinance, or the appraisal’s short-term-rent analysis on a purchase. The borrower must be experienced, meaning twelve months owning income property in the last thirty-six. These files are not on the no-ratio path. Short-term rental rules can vary by city, county, HOA, and property type, so investors should confirm local rules before relying on projected rental income.
No-ratio files. Through select wholesale programs, no-ratio is available to $2,000,000 with a seven-year clean housing history and 0x30x24, subject to underwriting and within the LTV and credit envelope. It is a narrow path, not a default.
Condos. Warrantable and non-warrantable condos are eligible. Non-warrantable condos run to 75% and $1,500,000. Condotels run to 75% on a purchase and 65% on a refinance, up to $1,500,000, with $250,000 cash-in-hand. Condo questionnaire completeness is a common friction point.
Rural and acreage. Rural collateral of five acres or less runs to 75%, and only on loans at or below $3,000,000. Above $3,000,000 the super jumbo overlay excludes rural property. Acreage runs up to twenty acres on loans to $3,000,000 and ten acres above it.
Vesting. LLC or trust vesting is welcome, with no layered entities, subject to program eligibility. Many DSCR loans are full recourse to the guarantors, as one investor forum discussion notes. Entity documents get reviewed like everything else.
Key Terms Defined
DSCR: The property’s monthly rent divided by its full monthly obligation.
PITIA: Principal, interest, taxes, insurance and association dues, the debt side of the ratio.
LTV: The loan amount as a percentage of the property’s value.
Reserves: Liquid funds the borrower holds after closing, counted in months of payment.
Super jumbo: A lender tier for very large balances, not an official government category.
Special Flood Hazard Area: A mapped zone with a 1% annual chance of flooding.
DSCR vs. conventional financing
There are two common ways to finance an investment property, and they qualify you differently — here’s how investors weigh them.
Why investors choose it
- Qualifies on the property’s rental income — no personal tax returns, W-2s, or pay stubs needed to document income.
- No personal debt-to-income ceiling to clear, so existing mortgages and obligations don’t cap your borrowing the same way.
- Can be closed in an LLC, keeping the property inside a business entity.
- Built for scaling — not held to the limit on number of financed properties that conventional financing applies.
- Underwriting centers on the deal: generally qualifies when the rent covers the payment, a 1.00x coverage ratio being a common baseline (confirmed in underwriting).
- Designed specifically for investment property, including long-term and, where the program allows, short-term rentals.
Where it’s strong
- Often the lowest ongoing financing cost for a buyer who fully qualifies on personal income — a fit for a first property or a cost-first purchase.
Trade-offs for investors
- Requires full personal income documentation and must fit within a debt-to-income limit — salary, existing debts, and other mortgages all count.
- Typically held in your personal name rather than a business entity.
- Caps how many financed properties you can carry, which can become a ceiling as a portfolio grows.
- Evaluates you as a borrower as much as the property, which usually means more paperwork.
How investors usually choose: a first or single property often optimizes for the lowest financing cost; portfolio builders often optimize for leverage, vesting in an LLC, and scaling past conventional caps. The right answer depends on your goals, the property, and current guidelines — both paths run through select lenders in Lendmire’s wholesale network, with eligibility and terms confirmed in underwriting.
What Does a Qualified File Look Like in Practice?
Picture an investor buying a high-balance rental through an LLC. The file needs the appraisal and its rent schedule, the entity documents, proof of reserves, insurance quotes (hazard plus flood where the map requires it) and clean title. Louisiana files can stall on the insurance quote. The coverage number is built on one premium, and the final quote lands at a different figure.
The practical habit is to get the full insurance quote in before the appraisal comes back. That way the ratio is tested against real numbers. If it comes up short, the options are less leverage, more down payment, or a program that reviews lower coverage. Qualification is subject to lender guidelines, credit review and property review.
The complete DSCR loans guide covers the basics.
If you are buying or refinancing a high-balance rental property and want to see how the numbers work, Lendmire can help you compare super jumbo DSCR loan options based on the property income, the loan balance, credit profile, leverage, and investor goals. Reach the team at 828-256-2183.
Frequently Asked Questions
Is a super jumbo DSCR loan the same as a jumbo mortgage?
No. A jumbo mortgage is any loan above the conforming limit, and it usually relies on personal income documents. A super jumbo DSCR loan is reviewed primarily on property-level rental income covering the payment, subject to lender guidelines. It is a business-purpose product for investment property.
Do cash-out proceeds count toward reserves?
Not above $3,000,000. Cash-out never satisfies reserves at that size. Reserves are typically six months of PITIA on the subject property, twelve for first-time investors, subject to underwriting.
Can an LLC hold title?
Yes, subject to lender program eligibility. Entity vesting is welcome, but layered entities are not. Expect to provide the standard entity documents and a guarantor.
What if the rent does not cover the payment?
Select programs in the network review coverage from 0.75 to 0.99 at balances up to $2,000,000, with LTV and terms adjusting, subject to underwriting. Other fixes are a lower loan amount or a bigger down payment. At the largest sizes, leverage and credit usually bind first.
How do Louisiana insurance costs affect qualification?
They sit inside the payment, so higher premiums lower the ratio for the same rent. Flood coverage, where required, adds a separate premium. Getting full quotes before the file goes in keeps the ratio honest.
Lendmire’s self-employed mortgages page presents both super jumbo programs, bank statement and DSCR, side by side.
About Lendmire
Lendmire is a DSCR-focused mortgage brokerage, NMLS# 2371349, placing investor loans across 41 markets, including Washington, D.C. DSCR eligibility is generally reviewed by the lender around a property’s rental income rather than personal income documentation, which fits LLC-held rentals, self-employed investors, and portfolios scaling past conventional financed-property limits. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
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References
1. Calculated Risk (quoting FHFA release)
3. An educational explainer on debt service coverage
4. Re-leased
5. Steadily
This article is part of Lendmire’s super jumbo DSCR loan program — full qualification details, guidelines, and scenarios live on the program page.
Related reading: How a Multifamily Super Jumbo DSCR Loan Works · 40-Year Fixed vs IO ARM on a Super Jumbo DSCR Loan · Can a Retiree With No Job Qualify for a Super Jumbo DSCR Loan?
Guides: Super Jumbo DSCR Loans in Louisiana
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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- North Carolina Insurance Producer · License# 19053198 · Property, Casualty, Life, Health · Verify on NAIC SBS
- Lendmire LLC · Firm NMLS# 2371349 · Verify firm licensure
Compliance and disclosures. Lendmire (NMLS# 2371349) is a licensed mortgage broker and is not a direct lender, depository institution, financial advisor, or tax professional. Content in this article is general market analysis and educational information — not financial, legal, or tax advice for any specific situation. Lendmire does not guarantee loan approval; every transaction is subject to underwriting by the funding lender. Mortgage pricing and loan program guidelines are subject to change at any time without notice and vary by borrower characteristics, property type, and state regulations. Lendmire complies with Equal Housing Opportunity. Licensure verification: NMLS Consumer Access.