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Investor financing in Metro Detroit

DSCR and Investor Loans in Michigan

Buying rentals in Detroit or the suburbs? A DSCR loan qualifies mainly on the rent the property earns. Learn how it works, how it compares with short-term money, and get matched with one investor lender.

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What are you looking to do?
  • Free, no obligation
  • No credit check to get matched
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  • Detroit and six counties

Rebuild Detroit is a free directory and matching service. It is not a lender, does not make loans or credit decisions and does not quote rates. Loan terms, rates and approval come only from the lender you choose, who must give you a Loan Estimate after you apply. Check any lender or loan officer on NMLS Consumer Access.

The basics

What is a DSCR loan?

DSCR stands for debt service coverage ratio. For a rental, it compares the property's rent with its monthly housing payment: principal, interest, property taxes, insurance and any association dues. If the rent covers the payment with room to spare, the ratio is above 1. If the rent falls short, it is below 1.

A DSCR loan is an investor loan where the lender looks mainly at that ratio instead of relying only on your personal income and tax returns. That can help self-employed investors and people growing a portfolio. Each lender sets its own minimum ratio, down payment, credit and reserve rules, so compare offers.

Who uses DSCR loans

DSCR loans are for investment property, not a home you will live in. If you plan to live in one unit of a 2 to 4 unit building, ask about owner-occupied loans instead.

Compare

Investor loan types compared

LoanTypical useHow it qualifiesLenders
DSCR loanLong-term rental financingMainly the property's rent vs its paymentDSCR lenders
Hard money loanShort-term purchase and rehab, fix and flipMainly the property and the deal, often faster to closeHard money lenders
Bridge loanShort-term gap between buying and selling or refinancingThe property and your exit planBridge loans
Portfolio loanSeveral properties or loans a lender keeps in houseSet by the lender, often flexiblePortfolio lenders
Commercial mortgage5+ units, mixed use and commercial buildingsProperty income and the borrowerCommercial lenders
Step by step

How to finance a Detroit rental

  1. 1

    Find the deal

    Browse off-market listings from local wholesalers, county auctions and homes for sale.

  2. 2

    Run the numbers

    Estimate rent, taxes, insurance, repairs and vacancy. Get a rental value appraisal or a property value analysis if you are unsure.

  3. 3

    Match with an investor lender

    Tell us the city, property type, down payment and timeline. One lender who does investor loans follows up.

  4. 4

    Inspect and budget the rehab

    Book an inspection and get contractor bids before you close. If you will rent in Detroit, ask about the city's rental certification rules and book a rental certification inspection.

  5. 5

    Close with a title company

    A title company checks liens and back taxes. For complex deals, a real estate attorney can review the contract.

Be ready

What investor lenders usually ask for

  • The property details. Address, purchase price or value, and a scope of work if it needs repairs.
  • Rent proof. Current leases, or a market rent estimate for a vacant property.
  • Your experience. Properties you own or have rehabbed. Some lenders set terms by experience.
  • Reserves. Bank statements that show cash left over after closing.
  • Entity documents. If you buy in an LLC, your formation papers. A business formation attorney can help.
Protect yourself

Before you sign an investor loan

  • Check the lender. Search the company on NMLS Consumer Access and ask how it is licensed in Michigan.
  • Read the prepayment terms. Many investor loans charge a fee for paying off early. Know it before you plan a sale or refinance.
  • Stress test the rent. Make sure the deal still works if rent comes in lower or a unit sits empty.
  • Get every fee in writing. Points, origination, draw and extension fees add up on short-term loans.
Questions

DSCR loans in Michigan: FAQ

Debt service coverage ratio. For a rental it compares the rent with the monthly payment, including principal, interest, taxes, insurance and dues.
Many DSCR lenders qualify mainly on the property's rent rather than your personal income, but each lender sets its own rules. Ask what documents they need.
No. DSCR loans are for investment property. If you will live in the home, look at owner-occupied mortgages instead.
No. Hard money is usually short-term financing for buying and rehabbing, while a DSCR loan is typically long-term financing for a rented property.
Browse off-market listings from local wholesalers on Rebuild Detroit, check property auctions and work with an investor-friendly agent.

Finance your next Detroit rental

Tell us the property, city and down payment. One investor lender follows up, free and with no obligation.

Start My Investor Match

Sources

Updated September 2026. Rules and procedures change; confirm with the responsible office before a decision.

Call (833) 313-2434 Start My Investor Match