Learn how to qualify for a DSCR loan in Michigan and close in as little as 7–14 days. We review the best lenders, comparing speed, terms, transparency & reliability.
Learn how to qualify for a DSCR loan in Michigan and close in as little as 7–14 days. We review the best lenders, comparing speed, terms, transparency & reliability.
get your rate in 8 questions
*Constitution only operates in select states
DSCR loans enable borrowers to purchase or refinance investment properties without submitting income verification, W-2 forms, or debt-to-income (DTI) calculations typically required for traditional loans.
The main factor that lenders evaluate is the property’s debt-service coverage ratio or DSCR. This is the ratio between the property’s rental income and debt obligations.
For instance, if a property can rent for $1,200 per month and the expenses (mortgage payments, taxes, insurance) total $1,000, its DSCR would be 1.2. Lenders typically look for a DSCR above 1.0, but Constitution Lending can fund deals with a DSCR as low as 0.75.
Because lenders underwrite the property’s financials and not the borrower’s, DSCR loans are perfect for real estate investors who don’t earn W2 income and have large rental portfolios, which create high DTI ratios.
Despite those benefits, it's important to choose your DSCR lender carefully. Some lenders drag out the closing process, causing you to miss out on profitable investment opportunities. Others may issue an approval, only to back out right before closing.
Here’s how you can separate the reliable lenders from bad ones:
In this article, we discuss five DSCR lenders that operate in Michigan so you can compare their process to the factors mentioned above and find the right option for you.
We start off with an in-depth look into how we, Constitution Lending, designed our process around the factors above. We use tools, such as our automated pricer and documents portal, to close within 7 to 14 days, which is faster than most lenders.
Use our automated DSCR loan pricer to generate instant quotes and experiment with different loan scenarios.
Constitution Lending is a direct DSCR lender that provides high LTV DSCR loans to borrowers in Michigan and most U.S. states.
After years in real estate ourselves, we started Constitution Lending because we were tired of dealing with bad lenders.
Lenders often promised to close in 14 to 21 days, but more often than not, it took 40 days or longer.
Lenders would send us approval letters, saying we meet the minimum requirements and qualify, but a few days before closing they return with a rejection letter. This unreliability caused us to lose multiple undervalued properties to cash buyers.
We designed Constitution Lending to solve these problems and help borrowers compete with cash buyers. This is what borrowers say about our speed and reliability:
A common reason why many lenders take so long to close is that their application and approval processes are outdated and inefficient.
First, borrowers have to complete a contact form on their website and then wait multiple business days for a loan officer’s call. After answering numerous questions, and waiting a few more days, they finally receive loan documents. This is all before the lender even starts underwriting.
Constitution Lending uses an automated pricer to speed up this process and return borrowers with instant loan quotes, term sheets, and approval letters.
All that's required is basic information about the property, including its value, type, and projected rental income, along with your credit score. Then, you’ll receive a quote that looks something like this:
From here, we encourage you to price out multiple loan scenarios by experimenting with the property’s value and purchase price, loan amount, and cash flow and observing how this impacts your interest rates, LTV, loan payments, and buydowns.
Once you’ve found a quote you’re happy with, you enter your email address to download a term sheet and approval letter.
You’ll also receive an email with a link to our document portal, where you can review the required paperwork (e.g., bank statements, entity documents, proof of insurance) and upload it. No need to wait days for a loan officer to get back to you.
As your application moves forward, you can track every step in the documents portal. You can also use the messenger feature to ask our team any questions.
By automating the application process, we can close within 7 to 14 days. We’ve even finalized deals within four days if borrowers were really under the gun to close.
Read more: DSCR Loan Pros and Cons: A Detailed Guide for Investors
Constitution Lending is a direct DSCR lender, meaning we use our own capital to originate your mortgage loan and we are the only decision maker.
The benefit of working with a direct lender is that you get a reliable yes or no hours after submitting your loan application. We have a deep understanding of our eligibility requirements and can immediately make a decision; we don’t have to send your application to a third-party lender and wait weeks for them to finish underwriting before giving you an answer.
Brokers don’t have a good understanding of the requirements you must meet to qualify because they work with multiple lenders. They can’t say if you qualify by simply reviewing your paperwork. Instead, they must send it to the lender, wait for the lender to finish underwriting, and then give you a final answer.
This is why last minute rejections are so common. If the real lender finds issues with your application that the broker missed, it causes complications near the closing date and after the broker says you qualify.
Read more: Current DSCR Loan Rates + 5 Factors That Impact Interest Rates
Generate an instant DSCR loan quote to learn what interest rates you qualify for.
Griffin Funding is a non-QM private lender that lends to borrowers in Michigan and several other states in the U.S. They offer Michigan DSCR loans across a wide range of Michigan real estate markets, from Detroit and Ann Arbor to Grand Rapids, making it a practical option regardless of where you’re investing in Michigan.
Griffin Funding’s transparent underwriting approach, fast closings, and reasonable down payment requirements (usually starting at 20%) make them a strong choice for both seasoned and first-time real estate investors. The company also offers tools like an online DSCR calculator and the Griffin Gold app, which helps borrowers monitor their credit and manage their loan applications more efficiently.
That said, while Griffin Funding does have an online calculator for calculating your DSCR, it doesn’t have an automated pricer for generating an instant quote.
Instead, Griffin Funding uses outdated systems, such as requiring borrowers to fill out a form on its website and wait for a loan officer’s call. In our experience, this adds unnecessary delays to the application process, making it unclear how quickly Griffin Funding can close.
Visio Lending is an investor-focused private lender tailored for first-time and experienced borrowers. With a nationwide presence and over 19,000 loans funded, Visio Lending brings proven experience to Michigan’s rental property market.
Visio’s Michigan DSCR loans are designed for investors who want to qualify based on a property's income-generating potential, not their personal income. That means no W-2s, tax returns, or employment verifications are needed.
It’s also worth noting that Visio Lending supports both long-term and short-term (vacation) rentals.
Their DSCR program is available in most of Michigan. However, investors should note that properties in Detroit and Flint are currently excluded. Borrowers can finance properties through LLCs or corporations, and 30-year fixed-rate loans with no balloon payments offer long-term stability.
Also, like Griffin Funding and many DSCR lenders in the U.S., Visio Lending doesn’t have an automated pricer where borrowers can easily price out loan scenarios and get approved instantly. Instead, they have to wait for a loan officer to reach out, which can add to the closing time.
Lima One Capital is a hard money lender with DSCR loan options for borrowers all over the U.S., including Michigan. They finance various property types, including single-family rentals, multifamily units, and short-term vacation rentals.
Lima One's DSCR loans are designed to assess the property's income potential rather than the borrower's personal income, making them ideal for self-employed individuals or those with complex financial profiles.
With a minimum credit score requirement 660 and loan amounts ranging from $75,000 to $2.5 million, they offer flexibility to accommodate diverse real estate investment strategies. Their loan terms include 30-year fixed rates, 5/1 and 10/1 ARMs, and 5-year interest-only options, catering to different investor needs.
Additionally, they offer rental portfolio loan options, allowing investors to finance multiple properties under a single loan, which can be particularly beneficial for those looking to scale their portfolios.
While Lima One's Michigan DSCR loans come with competitive interest rates starting as low as 6.90%, it's important to note that some financing options may include prepayment penalties.
Plus, we are unsure how quickly Lima One can actually close because, like the other options on this list, it still requires borrowers to talk with loan officers on the phone and wait multiple business days for quotes, term sheets, and approval letters. These outdated systems can add time to the application process.
Certain Lending is a direct-to-consumer lender that offers a wide variety of commercial loan options, including DSCR loans. It lends to borrowers all over Michigan, including Detroit, Ann Arbor, Lansing, and more.
What we like about Certain Lending is their support for short-term rentals, including Airbnb and VRBO properties. Certain Lending can calculate your DSCR using vacation rental performance data (such as AirDNA or a 12-month operating history). This is especially useful for Michigan investors in vacation markets like Traverse City, South Haven, or along the Lake Michigan shoreline.
Their DSCR loan program covers non-owner-occupied single-family homes, townhomes, condos, and multifamily properties up to 10 units. To qualify, you’ll need a minimum credit score of 660. Down payment requirements vary but generally start at 20%, similar to most lenders.
Certain Lending offers a reliable and specialized DSCR loan product with competitive terms for Michigan-based real estate investors focused on short-term rental income.
It’s also important to note that Certain Lending doesn’t have an automated pricer on its website, nor does it mention an online documents portal. As a result, it’s unclear how Certain Lending speeds up the application process or whether it uses outdated systems.
Discover how Constitution Lending can finance your purchase of an investment property by generating an instant quote using our pricer.
get your rate in 8 questions
*Constitution only operates in select states
| Qualification | Requirement |
|---|---|
| Minimum and maximum loan amount | $150,000 to $3,000,000 |
| Type of property | Non-owner occupied single-family, multi-family, and 5-8 unit properties |