DSCR Loan Michigan 2026: Rates and Lenders From 4,760 Loans

Who pays what in Michigan: the loan-by-loan record behind “dscr loan michigan”

Lender websites show the rate offered to the best file. The federal Home Mortgage Disclosure Act (HMDA) record shows what Michigan borrowers closed at. Most mortgage lenders report every loan they originate each year, with the note rate, amount, loan-to-value ratio, purpose, property type and county, and the FFIEC and the Consumer Financial Protection Bureau publish the loan-level file. We downloaded the Michigan files for 2024 and 2025 on October 8, 2026 and computed every HMDA figure on this page from them (our arithmetic). For the product itself see what a DSCR loan is, rates by borrower tier and lender requirements. This page is the Michigan record, and its other half is Michigan law: usury, licensing, foreclosure, Detroit's rental rules and property-tax uncapping.

The definition, and what HMDA cannot tell you

There is no “DSCR” field in HMDA, so we build the group from fields that do exist, with the same definition as our Ohio and Georgia pages so the three can be compared. A business-purpose loan is reported only in some cases: the Regulation C commentary says it “is a covered loan only if it is a home improvement loan under § 1003.2(i), a home purchase loan under § 1003.2(j), or a refinancing under § 1003.2(p) and no other exclusion applies.” A lender that does not use the borrower's debt-to-income ratio reports that field as not applicable, “since no debt-to-income ratio was relied on in connection with the credit decision.” DSCR lenders underwrite on the property's rent, so their loans show up as business-purpose investment loans with DTI “NA.” A DSCR-type loan here is:

• originated, conventional (not FHA, VA or USDA), first lien, closed-end, not a reverse mortgage;
• occupancy type 3 (investment property), 1 to 4 units;
• business or commercial purpose = yes;
• debt-to-income ratio = NA;
• loan term of 360 months or longer, which leaves out the 12- to 36-month bridge and fix-and-flip loans (counted separately as “short-term”).

In 2025 Michigan had 194,062 conventional originations, 13,597 of them on investment property; 10,233 of those were for a business purpose and 7,334 of those had DTI reported as NA. The 4,760 DSCR-type loans are the part of that group with a term of 30 years or more.

The proxy has limits:

• Not a clean DSCR count. Other no-DTI business loans fall in it, and so do loans to LLCs, trusts and corporations. Entity borrowers are 41.7% of the 2025 Michigan loans (the FFIEC coding for a “non-natural person”).
• Note rate, not total cost. The prepayment-penalty term is NA on 100% of these loans, and the public file has no credit score, DSCR or rent. A lower note rate with points or a heavy prepayment penalty can cost more than a higher rate without them.
• Rounded amounts. Public loan amounts are band midpoints, and the FFIEC field list says property values are “Rounded to the midpoint of the nearest $10,000 interval for which the reported value falls,” so medians land on multiples of $5,000.
• Who is missing. Lenders below HMDA's reporting thresholds do not file, and a loan is listed under the institution that reported it.
• Two vintages. The 2024 file is the FFIEC one-year dataset and 2025 is the snapshot dataset, both downloaded October 8, 2026, and HMDA 2025 is last year's loans, not today's quotes.

Michigan DSCR-type loans, 2024 vs 2025

Michigan DSCR-type loans in HMDA, 2024 vs 2025

Michigan's loan count grew 49.1% in 2025 while the median note rate eased 0.154 points, from 7.904% to 7.75%. The conventional investor median (loans qualified on the borrower's income) moved from 7.375% to 7.25%, so the DSCR premium was +0.529 points in 2024 and +0.500 points in 2025. DSCR-type loans were 35% of investment-property originations, up from 27.5%, while conventional investor loans qualified on income slipped from 1,996 to 1,907. Entity borrowers were 41.6% in 2024 and 41.7% in 2025, and purchases (38.3%) and cash-out refinances (38.5%) were nearly even. The short-term bridge and flip segment was flat in count (1,348 to 1,393) with a median that fell from 11.25% to 10.75%.

The $115,000 loan: Michigan's small-loan market

The Michigan median is $115,000 on a $155,000 median property value, a loan-to-value of 74.2% on those two medians (our arithmetic), and the middle half of loans runs from $85,000 to $175,000. That is far below Georgia's $205,000 and below Ohio's $125,000. 36.6% of the 2025 loans were under $100,000, 13.5% under $75,000, and the smallest was $25,000. By band: 112 loans under $50,000, 532 from $50,000 to $74,999 and 1,096 from $75,000 to $99,999.

Michigan DSCR-type loans in 2025: median note rate by loan size

Smaller loans priced higher: 7.875% under $100,000 (1,740 loans), 7.625% from $100,000 to $149,999, 7.5% from $150,000 to $299,999 and 7.375% from $300,000 to $499,999. Part of that is who makes the small loans (see the next section), but part is structural, since a lender's fixed cost per loan weighs more on a small balance. Excluding United Wholesale Mortgage, loans under $100,000 had a 7.75% median, loans of $100,000 to $149,999 a 7.5% median and loans of $150,000 or more a 7.418% median, so the size effect survives (our arithmetic). Our DSCR loan requirements page covers the minimum loan amounts lenders set; HMDA shows only that these small loans exist.

Monthly principal and interest on a $115,000 loan, 30-year fixed, at each Michigan 2025 rate (our arithmetic)

The 25th-to-75th percentile gap is $75.78 a month, $909 a year on that loan. The DSCR median sits $39.37 a month, $472 a year above the conventional investor median on the same balance. Those conventional borrowers documented their income, so this compares two markets, not two quotes for one file.

Which loans got the lower rate

Michigan DSCR-type loans in 2025: median note rate by segment (segments with at least 30 loans)

These are medians of different borrower mixes, not prices for one file:

• Channel. Applied directly to the lender: 1,509 loans at 7.38%. Through a broker or correspondent: 3,251 loans (68.3%) at 7.875%. In Michigan the channel gap is large because one broker-only lender is 31.2% of the state.
• Borrower. Entities 7.5%, natural persons 7.875%. Entity borrowers are 1,985 loans, and the lower median likely reflects who they borrow from (our reading, not something HMDA shows).
• Purpose. Purchases 7.838%, cash-out refinances 7.875%, rate-and-term refinances 7.375%.
• Leverage. 7.531% at 60% LTV or below, 7.875% at 75% to 80%.
• Structure. Adjustable-rate loans were 1.2% of the total and interest-only loans 3.5%, so Michigan is a fixed-rate, amortizing market.

One lender writes almost a third of Michigan's DSCR loans

Top 10 DSCR-type lenders in Michigan by 2025 loans (names as filed with HMDA)

Neither Ohio nor Georgia has this lender structure. United Wholesale Mortgage (UWM) reported 1,484 Michigan loans (31.2%; 1,037 or 32.5% of the state in 2024), every one through a broker, with a middle half of rates of 7.625%-8.625%, a median of 8.125% and a $95,000 median loan; 50.8% of its loans were under $100,000. Every other lender combined made 3,276 loans at a 7.566% median on a $125,000 median loan, with 30.1% under $100,000. On a $95,000 loan the difference between those two medians is $36.82 a month, $442 a year (our arithmetic), though it mixes lender, broker compensation and borrower profile, so it is not a measure of UWM's price for a given file. The top 10 made 74.6% of the loans (Ohio 64.9%, Georgia 44.8%) and 100 lenders filed at least one, up from 73.

Behind the leader the picture is more varied. Kiavi made 433 loans at 7.375%, 37.4% of them through brokers. BPL Mortgage made 422 at 7.625% with a median loan of $85,000, and RCN Capital 383 at 7.575%, all direct. Velocity Commercial Capital made 205 loans at a 10.115% median, and 90 percent of its loans fall between 8.915% and 11.115% (our arithmetic); its median is 2.365 points above the state median (our arithmetic), which points to a different product mix, though HMDA does not say which. RCN's loan-to-value field is blank on most of its Michigan loans and written as a fraction on others, so we do not use it.

The lenders investors search for by name

Lenders investors search for by name: their Michigan HMDA records

Kiavi made 433 DSCR-type loans in 2025 and 673 short-term loans (36 months or less) at 10.95%. Investor Mortgage Finance LLC, the lender entity named in Visio Lending's website footer, made 56 at 7.369%. LendingOne made 63 at 7.085%, the lowest median of the names here, and Lima One only 22. Easy Street Capital reported no DSCR-type loans in Michigan in 2025 and 10 short-term ones. See also the best DSCR lenders and our check of 20 DSCR lenders' licenses and complaints.

What each lender's own site says about Michigan (October 8, 2026)

HMDA shows who lent. To see who says it lends here today, we read each lender's website on October 8, 2026. These are the lenders' claims, saved as sources, not our verification of their licenses.

What lender websites say about Michigan, read October 8, 2026

Kiavi's own caveat matters here: since September 1, 2026 its DSCR and rental loans are funded by Figure Lending LLC, so the 2025 Kiavi figures above describe the lender as it was before that change. Ask who the lender of record will be and what it charges before you apply; see our Kiavi review, LendingOne review and Visio Lending review.

Where in Michigan: Wayne County is half the state

Top 10 Michigan counties by 2025 DSCR-type loans (HMDA)

Wayne County, which holds Detroit and its western suburbs, made 2,354 loans, 49.5% of the state, at a 7.874% median rate and a $105,000 median loan, against 1,550 loans and 8% in 2024. 48.4% of its loans (1,140) were under $100,000, against 24.9% in the rest of the state; 76.6% came through brokers and 42.4% went to entities. HMDA's public file gives the county and the census tract, not the city, so we cannot say how many of the Wayne loans are inside the city of Detroit. Oakland County (394 loans) priced lower at 7.5% on a $175,000 median loan, and Macomb made 396 at 7.75%. Kent County (Grand Rapids) made 150 loans on a $205,000 median loan, and Genesee (Flint) made 189 on a $75,000 median at 7.875%, the lowest median loan of the ten with Saginaw (70 loans, $75,000, 7.999%).

Michigan metro areas by 2025 DSCR-type loans (HMDA derived metro code, with OMB divisions for Detroit)

The Detroit area splits in two in HMDA's metro coding: the Detroit-Dearborn-Livonia division is Wayne County alone (49.5% of the state) and the Warren-Troy-Farmington Hills division covers Oakland, Macomb and the outlying counties (851 loans, 17.9%). 658 loans (13.8%) were outside any metropolitan area. Flint (189 loans) had the highest median in the table at 7.875% on a $75,000 median loan, Grand Rapids (189 loans) 7.5% on $205,000, Lansing (126) 7.705%, and Ann Arbor (73) 7.375% on a $295,000 median loan, the largest loans in the state.

Michigan law: three statutes that decide who can charge what

All statute text below was read from the 2025 Michigan Compiled Laws as reproduced by Justia and saved in this page's sources; the Legislature's own site refused automated readers on October 8, 2026. A reading of statute text is not legal advice.

Usury: the 7% rule, the business-entity exemption and the 25% line

Michigan's general rule sits in the Usury Act, MCL 438.31: the legal rate is $5.00 per $100 a year, “except that in all cases it shall be lawful for the parties to stipulate in writing for the payment of any rate of interest, not exceeding 7% per annum.” A DSCR loan is far above 7%, so it relies on an exemption. The one that matters is MCL 438.61, which covers credit extended to a “business entity”: a corporation, trust, estate, partnership, cooperative or association, “or a natural person who furnishes to the extender of the credit a sworn statement in writing specifying the type of business and business purpose.” Two cases follow:

• Banks, thrifts, credit unions and insurers may agree with a business entity “in writing to any rate of interest.”
• Everyone else, including a non-bank DSCR lender, may agree “in writing to any rate of interest not exceeding the rate allowed under Act No. 259 of the Public Acts of 1968.” That Act, MCL 438.41, defines criminal usury as charging interest “at a rate exceeding 25% at simple interest per annum or the equivalent rate for a longer or shorter period,” punishable by up to 5 years or a fine of up to $10,000, or both.

So for a Michigan business-purpose loan from a non-bank lender the working ceiling is 25% simple interest, not whatever the contract says. The highest 2025 Michigan DSCR-type note rate was 12.999% and 2.5% of loans were above 10% (our arithmetic), nowhere near the line. The exemption turns on the borrower being a business entity or giving a sworn business-purpose statement, so a lender will ask an individual to sign one even when the loan is to a person rather than an LLC. HMDA cannot show whether that happened.

Licensing: the mortgage lender act stops at consumer loans

The Mortgage Brokers, Lenders, and Servicers Licensing Act, MCL 445.1651 and following, defines a regulated “mortgage loan” as “a loan secured by a first mortgage on real property located in this state and used, or improved for use, as a dwelling and designed for occupancy by 4 or fewer families,” and then excludes “A loan transaction in which the proceeds are not used primarily for a personal, family, or household purpose.” The exclusion looks at what the money is for, not at who the borrower is: a loan to an LLC that buys a rental and a loan to an individual that buys the same rental under a business-purpose certification both fall outside the definition on the text, while the same lender making a loan to buy the borrower's own home does not. The act also does not apply to a depository institution, and under MCL 445.1675(g) not to “A mortgage lender that in the aggregate with any affiliates makes 10 or fewer mortgage loans in a 12-month period.” For the borrower the practical point is narrow: on that text a Michigan business-purpose DSCR lender may not need a Michigan residential mortgage lender license, so a missing license on its own is not necessarily a red flag, and a licensing search will not tell you whether the lender is safe. Check its record instead (see our DSCR lender checks).

Recourse: the Nonrecourse Mortgage Loan Act

DSCR loans to LLCs are usually non-recourse with carve-outs. Michigan's Nonrecourse Mortgage Loan Act defines a “nonrecourse loan” as “a commercial loan secured by a mortgage on real property located in this state,” and MCL 445.1593(1) says “A post closing solvency covenant shall not be used, directly or indirectly, as a nonrecourse carveout or as the basis for any claim or action against a borrower or any guarantor or other surety on a nonrecourse loan.” A provision that breaks that rule “is invalid and unenforceable” (445.1593(2)). The act does not stop a lender from making a loan fully recourse, and it does not touch the other usual carve-outs (fraud, misapplied rents, voluntary bankruptcy), so read the guaranty section of your note whatever the property type. Whether a loan secured by a rental house is a “commercial loan” under the act is a question for a Michigan lawyer.

Foreclosure by advertisement, and the redemption period that is not always six months

Most Michigan mortgages are enforced without a court. MCL 600.3201 says “Every mortgage of real estate, which contains a power of sale, upon default being made in any condition of such mortgage, may be foreclosed by advertisement, in the cases and in the manner specified in this chapter.” After the sale the borrower keeps a right to redeem, and the length of that right is where lenders' and borrowers' assumptions go wrong. MCL 600.3240 sets it by type of property:

Michigan redemption periods after foreclosure by advertisement (MCL 600.3240)

For a DSCR rental of one to four units the usual answer is the second row, but the condition is easy to miss. Subsection (8) gives 6 months only “if the amount claimed to be due on the mortgage at the date of the notice of foreclosure is more than 66-2/3% of the original indebtedness secured by the mortgage”; below that line none of (7) to (11) applies and subsection (12) gives “1 year from the date of the sale.” A loan that has amortized to under two-thirds of its original balance, or a cash-out refinance that was later paid down, would redeem on the longer clock (our reading of the text). A mortgage on a building of more than 4 units takes 6 months whatever the balance.

During redemption the sale is not final: under subsection (1) the purchaser's deed “is void if the mortgagor” or a person with a recorded interest redeems, and under subsection (2) the amount is “the amount that was bid for the entire premises sold, interest from the date of the sale at the interest rate provided for by the mortgage,” plus the sheriff's fee and a small custody fee. For a lender that means the foreclosure bid is not yet cash; for a borrower it means six months or a year to refinance or sell. For the tax side of a foreclosure see the next section.

Detroit: the certificate of compliance and your rent assumption

A DSCR loan is sized on rent. In Detroit, whether you may legally collect that rent depends on a certificate. The City's July 2025 landlord guide says: “All rental properties in Detroit must complete a home inspection and obtain a certificate of compliance to legally rent to tenants.” It also says the City revamped the process in 2025 “to focus inspections on the most serious safety issues,” and the BSEED rental page says City Council passed a new law in October 2024 and that the City is “Combining rental registration and certificate of compliance into one application / step.”

What the process asks of an investor, from the City's own documents:

• Register and inspect. Register the property through BSEED's Code Enforcement Module, then pass an inspection: for one-to-two-unit properties, “Schedule with any of the approved inspection companies”; for three or more units, “Schedule an inspection with BSEED by calling 313-628-2451.”
• The checklist is 15 points. It covers structure, a roof that keeps out rain and snow, working utilities, smoke and carbon monoxide detectors, locks, plumbing, and “Heating system is operable and can provide a minimum of 68 degrees.”
• A sale restarts it. “When rental property is sold or transferred to a new owner, the new owner must register and apply for a new rental registration certificate.” A purchase with a DSCR loan is a transfer.
• Operating without it costs. The guide lists “Tickets from BSEED, starting at $400,” liens for unpaid tickets, and “Tenant eligibility to pay rent into escrow instead of the landlord.”
• Owner-occupied homes are carved out. The guide excludes an owner-occupied single-family home with rooms rented out and an owner-occupied duplex with one unit rented.

What that means for a DSCR file is our reading, not something a lender has told us: a Detroit unit without a certificate may not legally produce the lease income the DSCR assumes, and a tenant paying into escrow does not produce it either. So price the certificate and its repairs into the purchase, ask your lender in writing whether it requires the certificate before closing or before it funds a refinance, and do not assume a tenant in place on the closing date proves the rent. The City's rental rules apply only inside Detroit; HMDA's Wayne County total (2,354 loans) includes the suburbs, and other Michigan cities set their own rental programs.

Proposal A: why the tax bill resets when you buy, and when an LLC changes hands

Michigan caps how fast a property's taxable value can rise, and a sale removes the cap. MCL 211.27a(1) says property “shall be assessed at 50% of its true cash value under section 3 of article IX of the state constitution of 1963.” Under subsection (2), “the taxable value of each parcel of property is the lesser of the following”: last year's taxable value times “the lesser of 1.05 or the inflation rate, plus all additions,” or the current state equalized valuation. Then subsection (3): “Upon a transfer of ownership of property after 1994, the property's taxable value for the calendar year following the year of the transfer is the property's state equalized valuation for the calendar year following the transfer.”

For a buyer the effect is on the year after the purchase. The seller may have been paying on a taxable value held down by the cap for years; you pay on the state equalized valuation, which is 50% of the assessor's true cash value. On the $155,000 median property value in our loan data that valuation would be $77,500 state equalized valuation if assessed at true cash value if assessed at true cash value (our arithmetic); the millage rate that multiplies it is set locally, and we have not saved a millage table, so get your parcel's rate from the assessor. The DSCR consequence is that the seller's tax bill is not a guide to yours. Ask the lender which tax figure it will use, and run your own with the uncapped value.

Three other parts of the section reach DSCR borrowers:

• LLC interests count. A “transfer of ownership” includes “a conveyance of an ownership interest in a corporation, partnership, sole proprietorship, limited liability company” if “the ownership interest conveyed is more than 50%,” so selling or reassigning a majority of the LLC that owns a rental can uncap it without a deed.
• The mortgage itself does not. A “transfer for security or an assignment or discharge of a security interest” is not a transfer of ownership, and a foreclosure transfer is not one “until the mortgagee or land contract vendor subsequently transfers the property.”
• You have to tell the assessor. The buyer must notify the assessing office “of the transfer of ownership of the property within 45 days of the transfer of ownership,” on a state form, unless the register of deeds' monthly notice covers it.

Michigan next to Ohio and Georgia

Three states on the same HMDA definition, 2025 (our arithmetic)

Ohio is the closest comparison on loan size, but Michigan differs on the structure: fewer loans to entities, more broker business and the largest single-lender share of the three. Georgia's median loan is $205,000, about 1.8 times Michigan's (our arithmetic). The Michigan median rate of 7.75% is the highest of the three, which fits the small loans and the broker-heavy mix more than a state effect (our reading). The sister pages are Ohio and Georgia.

What a Michigan investor can do with this

1. Place any quote on the distribution. At or below 7.297% you are in the cheapest quarter of Michigan DSCR-type loans in 2025; at or above 8.25% you are in the costliest. Use 2025 as a range, and get today's quote.
2. Get a second quote outside the broker you were handed. 68.3% of loans came through brokers, and direct loans had a 7.38% median against 7.875%. On a small loan, ask each lender for the fee sheet, since a fixed fee weighs more on a $115,000 balance than on a larger one.
3. Read the prepayment clause and the guaranty. HMDA shows neither. Michigan's usury ceiling for a non-bank lender is 25% simple interest, so the note's rate is not the protection; the carve-outs are.
4. Know your redemption clock. If you are a borrower on a 1-4 unit rental, the 6-month period depends on the balance owed relative to the original loan; if you are lending, bid and carry the foreclosure with the 1-year case in mind.
5. Budget Detroit's certificate before you rely on the rent, and re-register after any purchase.
6. Underwrite taxes on the uncapped value, and watch the 50% LLC rule if you plan to bring in partners.
7. Check whether you qualify conventionally. The conventional investor median was 7.25% against 7.75%, a gap of $39.37 a month, $472 a year on the median loan. Our DSCR vs conventional comparison and DSCR calculator help you see which one your property clears.

FAQ

Loan-level data: FFIEC/CFPB HMDA Data Browser, Michigan originated conventional loans for 2024 and 2025, downloaded October 8, 2026 (request URLs in the data file; scripts in sources/hmda/); Ohio and Georgia 2025 figures from the cached files of our Ohio and Georgia pages run through the same definition on October 8, 2026; definitions from the Regulation C commentary and the FFIEC HMDA field list; lender names from the FFIEC filer lists; county names from the Census Bureau 2020 county list; metropolitan divisions from the OMB delineation file published by the Census Bureau; Michigan Compiled Laws sections 438.31, 438.41, 438.61, 445.1591 to 445.1594, 445.1651a, 445.1675, 600.3201, 600.3240 and 211.27a as reproduced by Justia (the Legislature's site refused automated readers that day); City of Detroit BSEED landlord guide (July 2025) and rental requirements page; lender statements from the websites of Kiavi, LendingOne, Visio Lending and RCN Capital read October 8, 2026. All percentiles, medians, shares and payment figures are our arithmetic. This is analysis of public records, not investment, legal, lending or tax advice, and not a loan offer. Kiavi pays CrowdfundedWealth if a reader it refers closes a loan; the other lenders named in the box do not.