DSCR loans in Michigan qualify you based on the property's rental income rather than your personal income. You need a debt service coverage ratio of 1.0 or higher, meaning the property's rent covers the mortgage payment. Most lenders require a credit score of 660 or higher and a down payment of 20-25%. No tax returns, W-2s, or employment verification is needed.

Most DSCR lenders in Michigan prefer a ratio of 1.25 or higher, meaning the property generates 25% more income than the monthly mortgage payment. Some lenders offer programs for ratios as low as 0.75 for strong borrowers, though at higher rates. The required ratio may vary based on property type, location within Michigan, and the borrower's overall financial profile.

Yes, many DSCR lenders in Michigan accept short-term rental income from platforms like Airbnb and VRBO. Income is typically calculated using a 12-month average of actual rental history or a market rent analysis from a third-party report. Some Michigan municipalities have short-term rental regulations that lenders will verify before approving the loan.

There is no set limit on the number of DSCR loans you can hold in Michigan, as each loan is evaluated independently based on the property's income. Some lenders cap individual borrowers at 10-20 properties, while others have no portfolio limits. NMHL works with lenders offering unlimited DSCR portfolios for experienced investors building rental portfolios in Michigan.

Yes, DSCR loans in Michigan are available for properties ranging from single-family rentals to multi-family buildings with up to 8 units or more depending on the lender. Multi-family properties often have higher DSCR ratios due to multiple income streams, making them easier to qualify. Larger multi-family properties may require commercial DSCR terms rather than residential.

DSCR loan rates in Michigan typically run 1-2% higher than conventional owner-occupied rates, generally ranging from 7-9% depending on your credit score, DSCR ratio, and loan-to-value. Higher DSCR ratios and larger down payments earn better rates. Despite the higher rate, DSCR loans are popular because they allow investors to qualify without disclosing personal income.