Rental property financing built on rental income.
A DSCR loan in Michigan is an investment property mortgage that qualifies on the rent the property earns, not your personal income. HUD puts the 2 bedroom Fair Market Rent for the Detroit metro at $1,459 a month (HUD User). Pillar Mortgage Group (NMLS 2700076) arranges DSCR loans in Michigan up to $5 million.
Facts checked November 1, 2026. Not a commitment to lend.
DSCR loans by state
We lend DSCR in 35 states. Pick yours.
Pulled from state statutes, state agencies, the Census Bureau and FRED. Each row links to its source.
| Michigan fact | Value | Source |
|---|---|---|
| Security instrument | Mortgage | legislature.mi.gov |
| Foreclosure | Nonjudicial foreclosure by advertisement is available for any mortgage containing a power of sale | MCL 600.3201 |
| Transfer and recording taxes | State real estate transfer tax $3.75 per $500 of value; county transfer tax $0.55 per $500 (counties of 2,000,000 or more may levy up to $0.75 per $500) | MCL 207.525(1) (state); MCL 207.504 (county) |
| Security deposit | 1.5 months' rent | MCL 554.602 |
| Notice for unpaid rent | 7 day written notice to quit / demand for possession | MCL 554.134(2); MCL 600.5714(1)(a) |
| Rent control | State preemption | MCL 123.411(2) |
| LLC formation fee | $50 | MCL 450.5101(1)(b) |
| Median listing price | $299,900 in September 2026 ($299,900 in September 2025) | Realtor.com via FRED |
| HUD 2 bedroom Fair Market Rent | $1,459, The Detroit metro | HUD User |
Full walk through: how DSCR is calculated.
The guidelines that set our Michigan DSCR loans apart.
Loan amount
Up to $5M
Credit
660 and up
Down
20 to 25%
Vesting
LLC ok
Guidelines summarized; subject to program terms, property and borrower eligibility. Not a commitment to lend. Compare with typical DSCR programs.
Rent is the number that qualifies a DSCR loan, so start with what Michigan rentals actually command.
Median listing price
$299,900
September 2026, down 0.0% from $299,900 in September 2025
Quick math (computed from the figures above): On a Michigan home at the Michigan median of $299,900, 25% down comes to $74,975, leaving a $224,925 loan. A year of rent at the Fair Market Rent for the Detroit metro ($1,459) is $17,508, or 5.8% of that price. A year of rent at the Fair Market Rent for the Grand Rapids metro ($1,630) is $19,560, or 6.5% of that price.
Fair Market Rent is a HUD benchmark, not an appraisal.
The rent field starts at the HUD 2 bedroom Fair Market Rent for the Detroit metro. HUD also lists the Detroit metro at $1,459 and the Grand Rapids metro at $1,630. Swap in your lease or appraisal rent, then add your quoted rate. For a price reference, the median Michigan listing was $299,900 in September 2026.
See how a rental's income stacks up against its full monthly payment. Your numbers stay in your browser.
Enter rent, price and your quoted rate to see your DSCR.
Loan amount (L) = Price × (100 minus Down %) ÷ 100
P&I (30 year fixed) = L × r × (1 + r)^360 ÷ ((1 + r)^360 minus 1), where r = annual rate ÷ 100 ÷ 12
P&I (40 year interest only) = L × r
PITIA = P&I + Tax ÷ 12 + Insurance ÷ 12 + HOA
DSCR = Monthly rent ÷ PITIA
Rent needed for a target DSCR = Target × PITIA
Estimates only. Not a loan offer. Rates and terms vary by lender, property and borrower. Company NMLS #2700076. Example values are illustrations, not a quote.
Hypothetical PITIA of $1,775 (P&I $1,400, taxes $250, insurance $125), real Michigan rents. Not a quote or a rate.
0.82DSCR
$1,459 / $1,775 = 0.82: fits programs down to 0.50.
0.92DSCR
$1,630 / $1,775 = 0.92: fits programs down to 0.50.
Tell us about the property and the rent. We will tell you straight whether it qualifies and what it takes.
Investors from any state can buy in Michigan.
No commitment · Under 2 minutes
We will reach out shortly to run your numbers.
Most Michigan DSCR deals land in these markets. Check the city rules before you buy.
City rules change. Confirm with the city and your HOA before you buy, and ask us how your lender counts short term rental income.
Know the Michigan landlord rules before you close. They shape your lease, your deposit and how fast you can act on unpaid rent.
| Topic | The rule | Citation |
|---|---|---|
| Security deposit cap | 1.5 months' rent | MCL 554.602 |
| Deposit return deadline | 30 days after termination of occupancy to mail itemized damages list (with any balance) | MCL 554.609 |
| Notice nonpayment | 7 day written notice to quit / demand for possession | MCL 554.134(2); MCL 600.5714(1)(a) |
| Notice end month to month | 1 month's notice for an estate at will or by sufferance | MCL 554.134(1) |
| Rent control | State preemption: local units may not enact, maintain or enforce ordinances controlling rent on private residential property. | MCL 123.411(2) |
Not legal advice.
Taxes go straight into PITIA, so they move your ratio. Budget for the investor rate, since rentals usually do not get homestead treatment.
Who closes your loan, which security instrument you sign and what the state charges to record it.
What it costs to form and keep an LLC in good standing with the Michigan Secretary of State.
The Michigan rules that touch your lease, your closing and your entity.
Documents: contract, lease or rent schedule, bank statements, LLC papers, insurance quote. No tax returns. Details.
Michigan is highlighted. We also lend DSCR in Ohio, Indiana and Wisconsin next door, and in 30 more states. Tap a gold state to open its guide.
Straight answers for investors buying or refinancing rentals in Michigan.
PMG guidelines summarized; subject to program terms, property and borrower eligibility. Not a commitment to lend.
Book a free callInvesting across state lines? We lend DSCR in these neighbors of Michigan too.
Primary sources, each with the date checked. PMG program facts come from Pillar Mortgage Group.
Send the Michigan property and rent. We run the ratio and lay out terms before you offer.
No commitment · Under 2 minutes
We will reach out shortly to run your numbers.
Pillar Mortgage Group, LLC is an Equal Housing Lender, doing business in accordance with the Fair Housing Act and Equal Credit Opportunity Act. Not a commitment to lend.
Company NMLS# 2700076 | Arizona License MB-2009671 | View NMLS Consumer Access