DSCR Loans for Michigan Real Estate Investors
Michigan’s rental market is full of potential. If you’re searching for how to qualify for DSCR loans in Michigan for rental properties, this guide will help.
What Is a DSCR Loan?
DSCR means Debt Service Coverage Ratio. It’s a loan based on rental income, not your personal salary or tax returns.
If the rent covers the mortgage, you can qualify.
Why Use DSCR Loans in Michigan?
Strong rental demand in Detroit, Grand Rapids, and Ann Arbor
Great for multi-family and single-family rentals
No income verification like W-2s or tax returns
Ideal for investors from Ohio, Illinois, and Indiana looking to expand
DSCR Loan Requirements in Michigan
DSCR Ratio: Minimum 1.0 to 1.25
Credit Score: 620+
Down Payment: 20% or higher
Loan Amounts: $100,000 to $2 million+
Eligible Properties: Single-family, duplex, triplex, fourplex
Top Michigan Cities for DSCR Loan Investors
Detroit: Affordable homes with strong rental returns
Grand Rapids: Growing economy and rental market
Ann Arbor: Stable student rental market
Lansing: Affordable investment opportunities
How to Qualify for DSCR Loans in Michigan for Rental Properties
To qualify, lenders focus on your rental income, not your personal finances. This makes DSCR loans perfect for investors who want to buy rental properties in Michigan without lengthy income paperwork.
