Michigan DSCR program
Rate-term DSCR refinance for Michigan rentals
Quick answer
A rate-term DSCR refinance replaces the existing loan on a Michigan rental with a new long-term loan without taking meaningful cash out. Investors use it to exit short-term rehab financing, change loan structure or consolidate title into an LLC. It qualifies on the property’s rent versus the new payment.
Common reasons to refinance without cash out
- Exit a short-term rehab or bridge loan once the property is rented
- Move from a balloon or adjustable structure to a long-term amortizing loan
- Refinance a rental out of a personal name into an LLC, where the lender allows it
- Replace a seller-financed note with conventional-style long-term debt
Because no significant cash is taken out, some lenders allow more leverage on a rate-term refinance than on a cash-out refinance. Rules vary, and we compare them for you.
The Michigan details to have ready
Have the current lease, the payoff letter, insurance declarations and the latest tax bill. If the property was purchased recently, the uncapped tax may not have hit your bill yet; underwrite the higher figure so the new loan still works next year. For Detroit rentals, have the Certificate of Compliance status ready.
If the property was just rehabbed, see our guide to BRRRR in Michigan with a DSCR refinance.
Questions investors ask
How soon can I refinance a rehabbed rental into a DSCR loan?
Once it is rented or rent-ready and meets the lender’s seasoning rule. Seasoning periods differ by program.
Have a Michigan rental in mind?
Send the address, the rent and the uncapped tax estimate. We shop the scenario with wholesale lenders and come back with options that fit the property.