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DSCR loans in Michigan

Quick answer

DSCR loans in Michigan qualify investors on a property's rental income instead of personal income, typically with 20%–25% down and a 660+ credit score.

By Purchase Mortgage Loan Editorial Team Checked against official sources per our editorial standardsLast updated

DSCR loan snapshot for Michigan

ItemEstimate
Minimum down payment20%–25%
Minimum credit score660–700
Typical MI home value$217,600
3.5% down on typical home$7,616
20% down on typical home$43,520
Avg. effective property tax1.28%/yr (~$233/mo)
Income for typical home (31% rule)$71,000

Rate assumption: 7.18% (Freddie Mac PMMS 30-year fixed average, week of November 5, 2026). Change it in the payment calculator.

Which Michigan programs pair with DSCR loans?

  • MI Home Loan: A 30-year fixed loan for first-time and repeat buyers in targeted areas, within income and price limits.
  • MI 10K DPA: Up to $10,000 of 0% deferred down payment assistance paired with the MI Home Loan.

Details and current limits: Michigan State Housing Development Authority (MSHDA).

How is DSCR calculated?

Lenders divide the property's market rent (from an appraiser's rent schedule or an existing lease) by the full monthly payment: principal, interest, taxes, insurance and any HOA dues. Example: $2,400 rent ÷ $2,000 payment = 1.20 DSCR.

Typical DSCR loan requirements

  • Down payment: 20%–25% (sometimes 15% for strong files).
  • Credit: 660–700 minimum.
  • Reserves: commonly 3–12 months of payments.
  • Property types: 1–4 unit homes, condos and townhomes; some lenders allow short-term rentals.

DSCR loans in Michigan cities

DetroitGrand RapidsWarrenSterling HeightsAnn ArborLansingDearbornClinton TownshipLivoniaTroyWestlandFarmington HillsFlintWyomingRochester HillsSouthfieldKalamazooNoviTaylorDearborn HeightsPontiacSt. Clair ShoresRoyal OakKentwoodBattle CreekPortageRosevilleEast LansingSaginawMidlandLincoln ParkMuskegonHollandEastpointeBay CityJacksonSouthgateBurtonOak ParkPort HuronForest HillsMadison HeightsAllen ParkHamtramckGarden CityAllendaleInksterOkemosHoltWalkerNorton ShoresRomulusAuburn HillsWyandotteWaverlyBirminghamMount PleasantMarquetteAdrianMonroeYpsilantiCutlervilleFerndaleHaslettTrentonWayneJenisonWixomGrosse Pointe WoodsGrandvilleMount ClemensTraverse CityNorthviewHarper WoodsBerkleyHazel ParkOwossoFraserColdwaterSault Ste. MarieIoniaRochesterWoodhavenMelvindaleEscanabaRiverviewNew BaltimoreFentonNilesSouth LyonFarmingtonEast Grand RapidsGrosse Pointe ParkClawsonSturgisGrand HavenBeverly HillsFlat RockCadillacComstock ParkAlpenaHowell

Frequently asked questions

Yes. DSCR loans are available statewide in Michigan through approved lenders, subject to county loan limits where they apply.

Often yes. Michigan State Housing Development Authority (MSHDA) and local programs frequently pair assistance with FHA, conventional, VA or USDA first mortgages. Eligibility depends on income, price and program rules.

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Figures on this page are estimates for educational purposes only and are not a loan offer or commitment to lend. Rates, loan limits, fees and assistance programs change frequently and vary by lender, location and borrower profile. Confirm current terms with a licensed loan officer.