DSCR Loans for Michigan Real Estate Investors
Michigan investors are finding new ways to grow without the red tape. DSCR loans are leading the way.
Forget the tax returns. Skip the W-2s. Just use rental income.
What Is a DSCR Loan?
DSCR stands for Debt Service Coverage Ratio. These loans qualify you based on property income, not personal income.
If the rent covers the mortgage, you're approved.
It’s that simple.
Why DSCR Loans Work in Michigan
Perfect for Small Multi-Family Homes
Think duplexes and triplexes in Grand Rapids, Lansing, and Kalamazoo.Great Airbnb Potential
Michigan lake towns and college cities are ideal for short-term rentals.Fast, Flexible Closings
Get funded in days, not weeks.No Income Check
Self-employed? No problem.
DSCR Loan Requirements for Michigan Rentals
Minimum DSCR: Usually 1.0–1.25
Credit Score: 620+
Down Payment: 20%–25%
Eligible Properties: Single-family, duplex, triplex, quadplex, short-term rentals
Loan Amounts: $100,000 to $2 million+
DSCR loan requirements for Michigan rental property
To qualify:
Your expected rent must cover the mortgage.
Your credit score should be above 620.
You’ll need a down payment of 20% or more.
There’s no income verification needed.
Where to Use DSCR Loans in Michigan
Detroit – Affordable entry, improving rents
Ann Arbor – Strong college rental demand
Grand Rapids – Top rental market for investors
Traverse City – Excellent Airbnb potential
Whether you’re flipping, renting, or going long-term, DSCR loans can help you scale.
Who Uses These Loans?
First-time investors
Out-of-state buyers
Self-employed landlords
Airbnb operators
BRRRR method users
