DSCR Loans in Michigan

Michigan DSCR lenders

Michigan has the lowest renter share of the eight DSCR states covered here and some of the lowest rents, which makes the ratio tighter. It also lets lenders foreclose by advertisement without a court case. Ten lenders here say they lend in Michigan.

• Easy Street Capital: Statewide, including Detroit and Grand Rapids (its Michigan DSCR page)
• Upright: Available statewide (its Michigan page)
• CoreVest: Has a Michigan DSCR page, which shows DSCR (1.0x); its 30-year DSCR page says 0.80x

Easy Street Capital's Michigan page says statewide, naming Detroit and Grand Rapids, even though its fix-and-flip program skips Detroit. Upright says DSCR rental loans are available statewide. CoreVest has a Michigan DSCR page.

Kiavi has no Michigan page but keeps Michigan on its state list. New Silver, Express Capital Financing, Lima One, LendingOne, Ternus and Griffin Funding cover Michigan through their lists; Ternus's FAQ and map both leave Michigan in. RCN Capital and Groundfloor do not publish a state list.

Running the ratio on a Michigan rent

Michigan's 2025 median gross rent was $1,220 (Census ACS 2025, table B25064), rank 7 of the eight states here. New Silver's minimum DSCR is 0.75, so a lender at that level could let the payment rise to $1,627; a 1.00x lender stops at $1,220.

At New Silver's advertised 6.875% and an assumed $350 a month for taxes and insurance, those ceilings mean a 30-year loan of about $194,300 at 0.75x, $132,400 at 1.00x and $95,200 at 1.25x. New Silver's smallest loan is $150K, so on Michigan's median rent a sub-1.00 ratio is what makes its minimum reachable.

Each Michigan lender that publishes both numbers turns the state's median rent into a different maximum loan once an assumed $350 goes to taxes and insurance:

• New Silver: 0.75x minimum at its advertised 6.875% gives about $194,300
• Kiavi: 0.8x minimum at its advertised 6.375% gives about $188,300
• Upright: 0.9x minimum at its advertised 5.99% gives about $167,800
• Express Capital Financing: 1x minimum at its advertised 6.25% gives about $141,200 (it also offers a no-DSCR option)
• Lima One Capital: 1x minimum at its advertised 6.5% gives about $137,600

Michigan housing numbers behind the ratio

Full PITIA at the median home. Assume 20% down on the $231,600 median value, so a $185,280 loan at 6.875% (the starting rate New Silver advertises) over 30 years: $1,217 a month in principal and interest. Add the median property tax ($2,904 a year, $242 a month) and an assumed $1,200 a year for insurance, and PITIA is $1,559. Against the $1,321 median 3-bedroom rent the DSCR is 0.85. That clears New Silver's published 0.75x minimum. To reach 1.00x at that rent, the loan would have to fall to about $149,000, which means about $82,600 down (35.7% of the value).

Michigan's median rent is $1,162 for two bedrooms and $1,321 for three (B25031). The typical home was built in 1972 (B25035), one of the older housing stocks of these eight states.

Michigan renters and home prices

Only 25.9% of Michigan's 4,150,990 occupied homes were rented in 2025 (table B25003), but rents rose 4.5% from $1,168. Home prices gained +3.7% over the year to 2026 Q2 (FHFA), led by Detroit-Dearborn-Livonia at +4.7%, with Warren-Troy-Farmington Hills +3.2% and Grand Rapids-Wyoming-Kentwood +3.1% (FHFA metro index).

Michigan prices gained +38.5% in five years, a little behind Ohio (+41.6%) and Indiana (+39.3%) and well behind Wisconsin (+46%).

Foreclosure by advertisement in Michigan

A Michigan mortgage with a power of sale can be foreclosed by advertisement after a default, with no lawsuit (MCL 600.3201). The standard Michigan instrument is a mortgage (Form 3023). Sources: MCL 600.3201.

Michigan transfer taxes

Michigan charges a state transfer tax of $3.75 per $500 and a county tax of 55 cents per $500 in counties under 2,000,000 people: $2,250 and $330 on a $300,000 purchase. Neither tax falls on the loan. Wayne County, which includes Detroit, may charge up to 75 cents per $500 because it has more than 2,000,000 people. Sources: MCL 207.525 (state), MCL 207.504 (county).

On a $231,600 median Michigan home the state tax is $1,740 and the county tax $255.20 at the 55-cent rate.

Michigan tenancy rules for landlords

Michigan caps a security deposit at 1 1/2 months' rent (MCL 554.602). The landlord has 30 days after the tenant moves out to mail an itemized notice of damages with the balance (MCL 554.609). No Michigan statute caps late fees, and ending a tenancy at will takes 1 month's notice, or one rent interval when rent is paid more often (MCL 554.134).

What this means for a Michigan DSCR deal. Michigan homes are cheap ($231,600 median) but so are rents, and the full PITIA test on the median home comes out at 0.85, which clears New Silver's 0.75 floor but not a 1.00x lender. The deposit cap limits how much cushion you hold against damage on older housing, so budget repairs outside the DSCR.

Before you apply in Michigan

• If the property is in Wayne County, budget its higher county transfer tax rate.
• Budget both the state and county transfer taxes on the purchase.
• Expect a sub-1.00 ratio lender to be the realistic option on a median-rent Michigan property.

General requirements, rate tables and rent rules for every lender: DSCR loans compared, DSCR loan rates, DSCR calculator. Short-term lenders: hard money lenders in Michigan. Other states: Florida, Texas, Ohio, North Carolina, California, Georgia, Illinois.