Conventional Investment Property Loans in New Orleans, LA
Loan-size math and qualifying analysis for Conventional financing on New Orleans's $246k median home value. Strong fit.
Strong fit for New Orleans.
New Orleans medians ($246k) keep down payment requirements manageable, and rental fit (75/100) supports the long-term cash flow conventional loans depend on.
Payment on New Orleans's $246k median.
| Median home value (New Orleans) | $245,988 |
| Assumed LTV | 80% |
| Loan amount | $196,791 |
| Cash to close (down payment) | $49,197 |
| Assumed rate | 6.75% |
| Term | 30-year amortizing |
| Monthly P&I | $1,276/mo |
Does New Orleans pencil?
| Median monthly rent (New Orleans) | $1,675/mo |
| Property taxes (est. 1.1%/yr) | −$225/mo |
| Insurance (est. 0.5%/yr) | −$102/mo |
| NOI (before debt) | $1,348/mo |
| Debt service | −$1,276/mo |
| DSCR | 1.06 |
Most Conventional lenders require DSCR ≥ 1.10 to fund and ≥ 1.20-1.25 for the best pricing tier. New Orleans medians fall below typical lender DSCR floors — a DSCR loan will only work on properties materially below median or with above-market rent.
Conventional financing — the mechanics.
Conforming residential mortgage for non-owner-occupied 1-4 unit properties, sold to Fannie Mae or Freddie Mac. Standard 30-year amortization. The lowest-cost real-estate financing available to most investors.
Lender requires: 680+ FICO, 20-25% down, DTI typically under 45% including the new mortgage, 2 years of W-2 + tax returns, 6 months of reserves per property. Closing in 30-45 days.
How Louisiana law affects this loan.
Frequently asked.
What's the typical Conventional loan size for a property in New Orleans?
On New Orleans's $246k median home value, a Conventional loan at the standard 80% LTV would be approximately $197k, requiring $49k down.
What's the monthly payment on a typical Conventional loan in New Orleans?
Fully-amortizing 30-year payment on a $197k Conventional loan at the typical rate of 6.75% would be approximately $1k/month, excluding taxes and insurance.
Is New Orleans a good market for Conventional financing?
New Orleans medians ($246k) keep down payment requirements manageable, and rental fit (75/100) supports the long-term cash flow conventional loans depend on.
What credit and reserves do Conventional lenders require for New Orleans properties?
Lender requires: 680+ FICO, 20-25% down, DTI typically under 45% including the new mortgage, 2 years of W-2 + tax returns, 6 months of reserves per property. Closing in 30-45 days.
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