DSCR loans in Michigan
Buy or refinance a Michigan rental by qualifying on the property’s income — not your tax returns, W-2s, or personal debt-to-income. Andes originates business-purpose DSCR loans across Detroit, Grand Rapids, Lansing, and Flint.
See what you can accomplish with our DSCR loans in Michigan.
- No tax returns · no personal DTI
- From 640 credit scores
- Business purpose · available in 46 states
- No title seasoning
What is a DSCR loan in Michigan?
DSCR stands for debt-service coverage ratio — the property’s monthly rent divided by its full monthly payment (principal, interest, taxes, insurance, and any HOA, together called PITIA).
At 1.0 the rent exactly covers the payment; above 1.0 it cash-flows on paper. That single number — not your personal income — qualifies the loan. For the full mechanics, see our national DSCR loan guide.
A quick Michigan example: a Flint single-family rental cash-flows comfortably on the seller’s current tax bill — until it doesn’t and most investors don’t account for this.
Here’s the deal in Michigan – when you buy, Michigan resets the taxable value (the “uncapping” pop-up) and the property loses the homestead exemption, so the tax line jumps. We break that down below — because it’s the difference between a deal that works and one that doesn’t.
What Michigan rents and prices are doing right now
The debt coverage ratio – this is the main metric of every DSCR loan, everything else, comes secondary.
If the question is “can this income cover the debt” then it’s worth seeing what Michigan rents are actually doing. The chart below tracks typical asking rent for single-family homes in Detroit, Grand Rapids, Lansing and Ann Arbor, updated monthly from Zillow’s ZORI series, with the underlying figures in a table beneath it.
Rent is only half the ratio. The other half is what you pay for the house — Michigan’s statewide median listing price is $300,000, and it varies widely by metro. Here is the current listing picture statewide:
Michigan rental market · single-family
Data through Aug 2026
| Metro | Typical asking rent | YoY change | Data through |
|---|---|---|---|
| Detroit | $1,680 | +3.6% | Aug 2026 |
| Grand Rapids | $2,221 | +4.5% | Aug 2026 |
| Lansing | $1,666 | +4.6% | Aug 2026 |
| Ann Arbor | $2,549 | +4.0% | Aug 2026 |
Data through Aug 2026 · updated monthly · source: Zillow (ZORI)
Michigan housing market
Realtor.com listing data · as of August 2026
Figures are Realtor.com listing data (what sellers are asking) — not sale prices. Source: Realtor.com via FRED (Federal Reserve Bank of St. Louis). Updates monthly.
Rent figures are typical asking rent for single-family homes — Source: Zillow (ZORI). Listing figures are Realtor.com median listing prices, not sale prices, published via FRED.
Who Michigan DSCR loans fit
Andes Mortgage originates DSCR loans in Michigan.
With these loans, we solve a problem that most investors face: tax returns, write-offs or lack of income that doesn’t allow them to increase their rental portfolio.
A DSCR loan skips personal income, debt-to-income ratio and other hurdles that typical conventional mortgages impose and focuses on the property’s cash flow instead. Our Michigan DSCR loans allow investors to purchase, refinance and access equity via cash-out refinancing, HELOCs or HELOANs.
- Business owners, self-employed, and 1099 contractors
- Self-employed borrowers who write off heavily against income, or haven’t filed yet
- Out-of-state investors who want to close in an LLC
- Investors scaling past the ten-property limit that conventional financing caps you at
- Buyers targeting non-warrantable condos that conventional lenders decline outright
Want to know if DSCR is a good fit, or see what you’d qualify for? Run Mortgage Match — it takes less than 60 seconds and there’s no credit pull. Start Mortgage Match →
What are the requirements for a DSCR loan in Michigan?
DSCR terms are set by the investor lending shelf, not by the state.
Andes Mortgage works with 40+ investors across the country and we place your loan where it fits, not just where the lowest rate is offered, though, that’s also important for us.
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Parameter
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Andes Mortgage Michigan DSCR guidelines
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Minimum credit score
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We work with as low as 640 credit score
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Max LTV — purchase (DSCR ≥ 1.0)
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Up to 85% for credit scores >700
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Max LTV — cash-out refinance
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Up to 75%
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DSCR 0.75–0.99 (reduced-ratio)
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Available — expect roughly a 5–10% LTV reduction vs. standard
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DSCR below 0.75 / no-ratio
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Available — typically to ~60–70% LTV at a higher credit score
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Loan amounts
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~$100K to $2.5M (minimum rises to ~$200K on sub-1.0 DSCR)
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Reserves
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3 months PITIA up to ~$1M; 6 months above ~$1M or on sub-1.0 DSCR
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Mortgage / rental history
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0x30x12 typical (no 30-day lates in 12 mo.)
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Property types
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SFR, PUD, townhome, 2–4 units, condos, and non-warrantable condos
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Rural property
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Allowed with up to 65% LTV
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Occupancy
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Business purpose / investment only
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Guidelines last verified: August 2026. Ranges reflect current wholesale investor guidelines and may change without notice. DSCR loans are business-purpose loans for non-owner-occupied property; this is not a commitment to lend.
DSCR loan rates in Michigan
Updated interest rates for DSCR loans in Michigan. Explore purchase and cash-out refinancing options with and without rate buydowns. Click build your scenario for a custom quote.
Rates as of Sep 15, 2026
These rates are a few days old — ask us for today's pricing.
Lower rate, more points
6.375%
1.625 points
Fewer points
6.875%
0.250 points
Up to 75% LTV
Lower rate, more points
6.250%
2.000 points
Fewer points
6.990%
0.125 points
Up to 75% LTV
Lower rate, more points
6.875%
1.750 points
Fewer points
7.000%
no points
Up to 75% LTV
Assumptions
- Credit score
- 760+
- Property type
- 1–4 unit investment
- Term
- 30-year fixed
- Prepayment penalty
- 3-year
- DSCR ratio
- 1.10+
- Max LTV
- 75%
Rates and points shown reflect Andes Mortgage's DSCR program ranges, synthesized from current wholesale pricing, and are illustrative, subject to change, and not a commitment to lend. Actual terms depend on a full review of your scenario.
DSCR loans are business-purpose financing priced nationally by program, so the pricing above applies across the states Andes serves — it isn't specific to Michigan.
Michigan DSCR loans under 1.0 ratio
There is no DSCR floor with Andes.
Where most lenders turn down a deal because the rent doesn’t cover the payment, a ratio under 1.0 doesn’t get rejected here — it moves to a different tier of the same program at a lower loan-to-value.
In Michigan this comes up more than you’d expect, because the tax reset below can pull an otherwise-healthy ratio under 1.0.
What investors covet and what lenders want to see when they are underwriting a Michigan DSCR loan. The rent covers the payment. You’re on the main program — best LTVs, widest credit range, lowest pricing.
The rent falls a little short. Still very financeable — expect roughly a 5–10% LTV reduction (a bit more down) in exchange for the lower ratio.
Even a property that doesn’t cash-flow on paper can be financed through a no-ratio structure — typically to ~60–70% LTV with a higher credit score.
If your Michigan rental is failing debt coverage, we have solutions for you under our “under 1.0 debt-coverage” program. See how below-1.0 DSCR financing works →
DSCR loans in Michigan may achieve a break even or surpass debt coverage at closing, but beware of the tax bill afterwards
Michigan caps how fast a property’s taxable value can grow each year — until ownership transfers.
The year after you buy, the property “uncaps”: its taxable value resets to roughly 50% of market value, and because it’s now a rental it loses the homestead exemption and pays ~18 additional mills.
The result: your tax bill is often well above what the seller was paying. Underwrite the seller’s number and the deal looks great. Underwrite yours, and here’s what actually happens:
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Same Detroit-metro rental · $200,000 · $1,700/mo rent · 25% down
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Property tax
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Full PITIA
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DSCR
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|---|---|---|---|
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On the seller's bill (capped taxable value, homestead)
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~$240/month
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~$1,373/month
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1.24 — cash-flows
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On your bill (uncapped ~50% of price, non-homestead)
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~$585/month
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~$1,716/month
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0.99 — reduced-ratio tier
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Nothing changed but the tax line — same house, same rent. That’s the Proposal A uncapping pop-up plus non-homestead millage, and it’s the single most common reason an out-of-state investor’s Michigan deal comes in under where they penciled it. Two things follow from it:
- Underwrite the post-sale bill, not the seller’s. We quote the uncapped, non-homestead figure so the ratio you see is the one you carry to closing.
- The cheapest doors may not be financeable. Sub-$100K Detroit and Flint properties often fall below the DSCR program’s minimum loan amount (~$100K) and value floors — great cash flow on paper, but not a DSCR deal.
Michigan markets allow different strategies for investors
Detroit & Flint — the cash-flow end
Lowest entry prices and the strongest rent-to-price ratios in the state — the classic out-of-state BRRRR draw. Watch the loan-size floor and the highest non-homestead millage in Michigan.
Grand Rapids & Lansing — the balanced middle
Grand Rapids brings west-Michigan job growth and steadier appreciation; Lansing pairs state-government stability with solid yields. More deals clear 1.0+ without heroics.
Ann Arbor
Centered around the University of Michigan, Ann Arbor commands a higher price point and higher demand with limited supply compared to other towns in Michigan.
Property types we finance in Michigan with our DSCR loans
Single-family & PUD
Where most Michigan DSCR loans fit — detached single-family and planned-unit developments across Detroit, Flint, East Lansing, Ann Arbor and more.
2–4 units & townhomes
Small multifamily and townhomes present primarily in Detroit and Flint. Lower maintenance and multiple doors can represent more cash flow.
Condos & non-warrantable
Warrantable and non-warrantable condos both financeable — which matter especially in downtown Detroit.
Multifamily 5-9 units
Small-scale 5–9 unit multifamily can close under our commercial DSCR guidelines.
Note: our Michigan DSCR loan allows rural properties too, but capped at 65% LTV — worth knowing in the Upper and Lower Peninsula. Not sure a specific address qualifies? Run Mortgage Match and we’ll confirm before you’re under contract.
Michigan DSCR loan calculator
Enter the property’s rent and payment — and use the real rate for the parcel’s own taxing jurisdiction, the county’s or the independent city’s, not a state average. We’ll tell you the DSCR, which tier you land in, and which constraint is limiting your deal. No email required to see your result.
Frequently asked questions
What is a DSCR loan in Michigan?
A business-purpose mortgage for a non-owner-occupied Michigan rental, qualified on the property’s rent divided by its full PITIA rather than your personal income.
What are the requirements for a DSCR loan in Michigan?
A credit score from 640, a qualifying DSCR (no hard floor — sub-1.0 moves to reduced- or no-ratio tiers), 20–25%+ down, 3–6 months of reserves, and a non-owner-occupied property. Loans can vest in an LLC.
How much down payment do I need for a Michigan DSCR loan?
About 20–25% on a standard purchase; up to 85% LTV (15% down) with a 700+ score. Sub-1.0 deals carry lower LTV caps.
What does a DSCR appraisal cost in Michigan?
Roughly $750-$900 depending on the size of the property and amount of units.
Can I buy a Michigan rental property through an LLC?
Yes. DSCR loans are business-purpose loans and can close in an LLC — how most Michigan investors hold rental property for liability and portfolio reasons. There’s also no limit on the number of DSCR loans you can hold. More on our guide: DSCR loan in an LLC .
What if my property’s DSCR is below 1.0?
You’re not disqualified — there’s no floor. 0.75–0.99 moves to reduced-ratio; below 0.75 to no-ratio. In Michigan the uncapping pop-up is a common cause of a sub-1.0 ratio. See below-1.0 DSCR financing.
Will my property taxes go up in Michigan after I buy?
Usually, yes. On transfer the taxable value uncaps and resets to about 50% of market value, and as a rental the property pays the non-homestead rate (~18 extra mills). Budget the post-sale bill, not the seller’s
Which Michigan markets work best for DSCR investing?
Detroit and Flint for cash flow, Grand Rapids and Lansing for a balance of yield and stability.
Related resources
See if your Michigan deal qualifies
Run Mortgage Match and we’ll tell you which DSCR tier your property lands in and what you’d put down — no credit pull, no obligation. Hablamos español.
Andes Mortgage LLC · NMLS #2187991 · Equal Housing Lender. DSCR loans are business-purpose loans for non-owner-occupied investment property only, offered in 46 states. Andes Mortgage does not offer owner-occupied or consumer-purpose mortgage loans in Michigan. Figures shown are typical ranges from current wholesale lending guidelines as of August 2026 — not a single lender’s terms and not a commitment to lend. Program terms and eligibility vary by lender and are subject to change without notice. Real-estate tax rates are the 2026 base rates published by each county or independent city; payment figures are illustrative.