Vernors ginger ale, Detroit-style pizza, and summer vacations Michigan has its own rhythm, its own flavor, and lately, its own growing appeal among global real estate investors.
From Detroit’s industrial comeback to lakeside vacation towns, Michigan offers a range of rental opportunities driven by redevelopment, solid rental yields, and lower entry prices. From university-area long-term rentals to seasonal properties near major lakes, Michigan offers flexibility across multiple investment strategies.
For foreign nationals, the sticking point is usually the financing structure, not market access. Many international real estate investors want exposure to US rental income without first establishing a long US credit profile.
That’s where a HomeAbroad’s DSCR loan in Michigan fits naturally. Instead of evaluating the borrower’s personal finances, this type of investment mortgage looks at whether the property can carry itself. Qualification is driven by the relationship between rental income and the full monthly housing cost.
DSCR Loan Michigan Snapshot
No US Credit History
US Income and Credit History Not Required
Minimum Down Payment
25%
Maximum Loan Amount
$10M
Fast Track Closing
27 Days
DSCR Loan Michigan Program Terms
Feature
HomeAbroad DSCR Loan
DSCR Ratio
Best terms typically apply at DSCR ≥ 1.0. If DSCR is below 1.0, the loan may still be eligible with a higher down payment. Our No-Ratio DSCR option (DSCR 0 to 1) can support foreign national investors buying properties with clear income upside, even when the property’s rent does not fully cover the monthly payment.
US Credit Score
Not required for foreign nationals
Loan Amount
$100K – $10M
Down Payment
25%
LTV
Up to 75% (Purchase) Up to 75% (Rate and Term Refi) Up to 70% (Cash-Out Refi)
Director of Mortgage Sales, HomeAbroad | NMLS# 1231769
“DSCR works when the focus stays on fundamentals. If the rental income clearly covers the ownership costs, the financing becomes straightforward. That’s why DSCR is effective for Michigan investment properties.”
Table of Contents
How DSCR is Calculated?
DSCR underwriting starts with a simple formula:
What counts as “Gross Rental Income” for DSCR Underwriting
Market rent supported by the appraisal rent schedule (commonly used for 1 to 4-unit rentals)
Executed lease rent, when acceptable to the lender and consistent with market support
What is included in PITIA
Principal
Interest
Taxes (Michigan property taxes and applicable assessments)
Insurance (including wildfire-related costs where relevant)
Association dues (HOA), if applicable)
Example
Calculating the DSCR Ratio for a Michigan Property:
Avg. Home Price in Detroit, MI: $73,156
Down payment: 25%
Loan Term: 30 Years
Interest Rate: 7%
Monthly Mortgage Payment(PITIA): $892
Avg. Rent in Detroit: $1,295
DSCR: $1,295 ÷ 892
DSCR = 1.45
Monthly Positive Cash Flow: $403
With a 1.45 DSCR, the property clears its debt obligations with room to spare. The additional $403 per month in cash flow provides a buffer that helps absorb normal operating fluctuations while maintaining income stability.
However, not all properties will meet this threshold, so we also offer our No-Ratio DSCR Program for properties with a DSCR between 0 and 1. This option allows investors to still qualify for financing, but it comes with a slightly larger down payment (a 5% hit to LTV) and higher interest rates. This program focuses less on rental income and more on other factors, giving investors with strong long-term plans the opportunity to secure financing.
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Valid Passport
Current passport from your home country
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Proof of Funds
Bank statements showing down payment + 6 months reserves
Benefits of DSCR Loans in Michigan
DSCR loans offer several advantages for foreign nationals investing in Michigan:
Qualification Based on Rental Income, Not Personal Income Documentation
At HomeAbroad, we do not rely on US W2s, US paystubs, or US tax returns to qualify a foreign national DSCR loan. We qualify you primarily on the property’s rental income profile and the strength of your overall file.
Faster Closing Times
DSCR loans can move quickly when the property, rent support, and documentation are straightforward. Appraisal and rent schedule timing still matters, especially in competitive Illinois markets. At HomeAbroad, we can close your deal in as less as 27 days.
Scale Your Portfolio Faster
International real estate investors like DSCR lending because it creates a repeatable qualification approach across multiple properties. When you understand how rent, PITIA, and reserves will be evaluated, it becomes easier to screen deals before you write offers.
Foreign National Friendly
DSCR loan is one of the best mortgage options for foreign nationals, who often face friction with conventional underwriting. DSCR lending is commonly used to reduce that friction because the property performance drives the qualification logic.
How Daniel Secured His First Investment Property With HomeAbroad in Michigan
Daniel, an investor based in Germany, was looking to purchase his first investment property in the US. Michigan stood out for its affordability and rental demand. With the guidance of Steven Glick, an expert loan officer at HomeAbroad, he smoothly secured a DSCR loan tailored to his needs.
Property Details:
Location: Grand Rapids Property Value: $245,000 Monthly Rental Income: $2,100
Loan Details:
Loan Amount: $183,750 Down Payment: 25% ($61,250) Interest Rate: 7.32% Loan Term: 30 years Monthly Mortgage (PITIA): $1,603
Director of Mortgage Sales, HomeAbroad | NMLS# 1231769
“From an underwriting perspective, this deal was strong because the cash flow was real. A 1.31 DSCR with close to $500 in monthly surplus gives stability well beyond minimum requirements. That’s critical for foreign nationals entering the US market.”
Daniel’s investment proved financially sound. A DSCR of 1.31 meant the rental comfortably covered its mortgage obligations while producing $497 in monthly positive cash flow. The approved 7.32% DSCR loan rate supported manageable payments and positioned the property for sustainable, long-term returns.
Michigan Rental Market Overview
Michigan remains a comparatively affordable rental market by US standards, which gives investors more room to structure DSCR-backed deals around rental income. Lower entry prices across many cities help keep rent-to-payment alignment more balanced.
As per our data, the key market statistics for 2025 are:
Median gross rent in Michigan: approximately $1,400/month
Median value of housing units: around $258,833
On the pricing side, Michigan’s all-transactions house price index stood at 569.23 in Q3 2025, based on data published by FRED on Nov 25, 2025.
Where We Lend DSCR Loans in Michigan
HomeAbroad offers DSCR loans across Michigan, with tailored support for investors in high-demand cities like Detroit, Grand Rapids, Ann Arbor, and more.
Here are a few cities in Michigan where we offer DSCR Loans.
Detroit
Ann Arbor
Grand Rapids
Lansing
Flint
Kalamazoo
Warren
Dearborn
Rochester Hills
Troy
Farmington Hills
Sterling Heights
Novi
Livonia
Pontiac
Top Places to Invest in Michigan with a DSCR Loan
Michigan offers strong investment potential, with an average rental yield of 6.7%, making it a great market for international real estate investors. With Michigan’s strong rental yields and DSCR loans, investors can acquire properties that cover their mortgage and generate positive cash flow.
Here are some of the top-performing cities in Michigan to consider for your DSCR loan investment:
The investment properties shown below are pulled from the HomeAbroad property-search platform and can change daily. Review each listing’s rent assumptions, cash flow, and DSCR inputs before you underwrite an offer.
City
Rental Type
Rental Yield
Detroit
Long-Term
20.6%
Traverse City
Short-Term
16.2%
Ann Arbor
Short-Term
15%
Grand Rapids
Long-Term
7.5%
Kalamazoo
Long-Term
6.9%
Detroit: America’s Comeback City with Affordable Entry
Detroit has one of the highest rental yields in the country, thanks to its low home prices and resurging local economy. Revitalization in downtown, new auto industry investments, and infrastructure projects like the Gordie Howe Bridge are boosting long-term value.
Median Home Price: $75,511
Average Rent: $1,300/month
What this means for investors: Lower acquisition costs paired with solid rents create wider DSCR margins, making it easier to structure deals that qualify on cash flow while preserving capital for future acquisitions.
Director of Mortgage Sales, HomeAbroad | NMLS# 1231769
“Detroit stands out because the math works early. When entry prices are low and rents are supported by real demand, investors often see stronger DSCR cushions than in higher-priced markets. For many foreign nationals, that combination makes Detroit a practical first step into US rental investing.”
Investment Properties Listed Today on Sale in Detroit
Traverse City: The Vacation Capital of Northern Michigan
This lakeside city is a hotspot for short-term rentals, drawing tourists year-round for its wineries, lakefront activities, and festivals. Limited housing supply and zoning-friendly short-term rental laws in surrounding townships create significant upside in income.
Median Home Price: $423,287
Average Rent: $1,875
What this means for investors: High seasonal income potential and excellent DSCR figures, perfect for international buyers building a vacation rental portfolio.
Investment Properties Listed Today on Sale in Traverse City
Ann Arbor: University Town with Stable Rental Demand
Home to the University of Michigan, Ann Arbor offers one of the Midwest’s most consistent rental markets. Demand comes from students, professors, researchers, and visiting professionals, with year-round occupancy and premium rental rates.
Median Home Price: $502,403
Average Rent: $2,303/month
What this means for investors: Stable, long-term tenant base with reliable income, ideal for DSCR qualification even in a higher-price market.
Investment Properties Listed Today on Sale in Ann Arbor
Grand Rapids has emerged as a top city for young professionals, healthcare jobs, and design/tech startups. It offers a balance between affordability and rental demand, with growing interest in both single-family and multifamily investments.
Median Home Price: $288,993
Average Rent: $1,828/month
What this means for investors: Balanced returns, long-term growth, and healthy DSCR ratios across property types.
Investment Properties Listed Today on Sale in Grand Rapids
Kalamazoo is underrated, but that’s changing. It benefits from a strong local economy (Pfizer’s massive presence helps), a major university, and steady demand from the healthcare and education sectors.
Median Home Price: $228,057
Average Rent: $1,323/month
What this means for investors: Solid rental income with modest home prices, making it a smart DSCR-friendly option for long-term holds.
Investment Properties Listed Today on Sale in Kalamazoo
Michigan Specific DSCR Underwriting Factors that Investors Overlook
Harsh Winters and Property Maintenance
Michigan winters can be brutal, especially in the Upper Peninsula and northern cities. Investors should account for snow removal, heating system maintenance, and potential freeze damage. Homes need proper insulation and weatherproofing, particularly if left vacant during the off-season.
Local Zoning Is Strict in College Towns
Ann Arbor and East Lansing are highly sought-after rental markets due to large student populations. But both cities enforce tight zoning rules for rental licenses, occupancy limits, and parking. Investing here is lucrative, but only if you comply with local rental ordinances.
Lakefront Properties Come with Extra Rules and Premiums
Waterfront rentals across Lake Michigan and northern inland lakes are popular, but they come with additional layers of regulation. The reason this matters is the cost structure. Higher insurance premiums, shoreline restrictions, and environmental permitting can all influence operating expenses tied to DSCR stability.
Seasonal Markets Shift Demand
Markets such as Traverse City, Petoskey, and Holland experience sharp seasonal swings. What most guides don’t mention is that underwriting relies on supportable annual income, not peak summer performance. Planning for off-season vacancy and proper winterization is essential.
Strategic & Future Considerations for Foreign Nationals Investing in Michigan
Michigan has become increasingly attractive to foreign real estate investors looking beyond the saturated coastal markets. Its mix of affordable housing, revitalized urban centers, and strong manufacturing and tech sectors positions it as a compelling long-term play. But savvy investors will look beyond the obvious to tap into Michigan’s evolving landscape.
Here’s what global investors must consider when evaluating future-oriented opportunities across the state.
1. Revival of Industrial Cities through Innovation
Detroit, Flint, and Grand Rapids are no longer just auto towns. With growing investment in EV manufacturing, clean energy, and logistics hubs, these cities are transforming into innovation corridors. Properties near new factories, tech campuses, and industrial parks could see strong appreciation in the next decade.
2. Canada-Michigan Cross-Border Advantage
With the new Gordie Howe International Bridge connecting Detroit to Windsor, Ontario (expected to open in early 2026), cross-border trade and travel are set to surge. This will likely increase housing demand and commercial activity in Detroit’s southwest and River Rouge areas, making them worth watching for rental property investors.
3. Emerging Demand in Waterfront and Small-Town Markets
Northern Michigan and lakeside towns along Lake Huron and Lake Michigan are attracting retirees, remote workers, and vacationers. Communities like Traverse City, Ludington, and Alpena offer low entry prices today but are expected to see long-term appreciation driven by limited supply and rising tourism.
4. Tech Investment in Greater Grand Rapids
Grand Rapids is rapidly becoming a tech and design hub, with firms in fintech, healthcare innovation, and industrial design setting up shop. Infrastructure and residential developments are keeping pace. Foreign investors seeking a balance between affordability and growth potential should keep this city on their radar.
Michigan DSCR Loan FAQs
Can foreign nationals apply for DSCR loans in the state of Michigan?
Yes, foreign nationals can apply for DSCR loans in Michigan through HomeAbroad, eliminating the need for a US credit score, making it a flexible financing option for global investors.
Do I need to live in the US to buy an investment property in Michigan?
No. HomeAbroad supports fully remote purchases, allowing foreign nationals to complete the DSCR loan process, including closing, while living outside the US.
Can I buy Michigan property through an LLC using a DSCR loan?
Yes. DSCR loans in Michigan can be structured under an LLC. HomeAbroad assists foreign nationals with LLC setup and ownership structuring as part of the investment process.
About the author:
Steven Glick is the Director of Mortgage Sales at HomeAbroad and has over a decade of experience in the mortgage industry. As a licensed mortgage originator (NMLS# 1231769), Steven brings deep expertise in loan processing, sales operations, and non-traditional mortgages.
* Scenario-based rate shown for illustrative purposes. Reflects current pricing available to qualified borrowers with strong credit, low loan-to-value, qualifying DSCR, and selected loan terms. Actual rates vary by borrower, property, and market conditions. Not a commitment to lend. Foreign national DSCR pricing may differ from U.S. borrower programs.
Michigan Investment Properties On Sale
Build wealth with HomeAbroad DSCR loans across Michigan’s top markets.
Our streamlined digital process gets you from application to funding faster than traditional lenders.
1
Get Pre-Qualified
Submit a quick online application. No credit pull required for initial quote.
⏱ 5 minutes
2
Submit Documents
Upload property details, lease agreements, and basic ID verification.
⏱ Same day
3
Property Appraisal
We order an appraisal and a rent schedule to confirm DSCR qualification.
⏱ 5–7 days
4
Close & Fund
Sign closing documents and receive your funds. Remote closing available.
⏱ 27 days total
Why Investors Choose HomeAbroad
DSCR Loan Experts
We focus on DSCR investor loans. Expect clear cash flow math, rent documentation, and underwriting that reflects how rental properties are evaluated.
Foreign National Mortgage Experts
No US credit? No problem. At HomeAbroad, our expert loan officers can still qualify you for a DSCR loan. We do not rely on US income or tax returns to underwrite your loan.
AI-Powered Property Search Platform
Our investment property search helps you shortlist rentals that fit DSCR qualification. Screen for rent strength, yield, and investor criteria before you write the offer.
End-to-End Support
We keep the process moving, from LLC formation to bank accounts, insurance to property management. Everything is handled by us so you can focus on growing your portfolio.
Why Choose Us
Built for Foreign Real Estate Investors
HomeAbroad is a one-stop shop for global investors, from finding properties to securing financing, setting up your LLC, opening a US bank account, and managing your portfolio.
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Foreign National Mortgage Experts
No US credit history, income, or residency required. We've helped thousands of international real estate investors finance Michigan real estate.
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AI–Powered Property Search
Our investment property search platform helps you discover high-yield rentals across Michigan using smart algorithms.
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Fast Digital Process
Close in as fast as 27 days with our streamlined application, remote notarization [remote closing], and digital document signing.
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500+ Expert Agents
Work with our network of experienced real estate agents who specialize in investment properties across Michigan.
Ready to Get Started?
Get your personalized rate quote in minutes. No credit pull, no obligation.
48
States We Lend In
27 Days
Average Close Time
500+
Partner Real Estate Agents
4.9 Star
Customer Rating
What Foreign Investors Say About Us
Real reviews from international investors who closed with HomeAbroad
★★★★★
“Quick response, reliable & trustworthy. HomeAbroad helped me find the perfect agent & purchase my investment property in Katy, TX. Would definitely recommend!”
RM
Rashmi Mayekar
Non-US Resident Investor • Property
★★★★★
“HomeAbroad was a game-changer! They helped me get mortgage financing and find an agent who understood my needs. I couldn’t be happier with their assistance.”
SP
Steve Papadakis
Newcomer on H1-B Visa
★★★★★
“Awesome experience in working with them. Very patient in understanding my needs as an investor and helped me with the correct loan product for me. I will recommend them and use them again.”
JB
John Bolla
Investor from New York, NY
★★★★★
“Jonet from HomeAbroad answered all my questions regarding specifics for work visa holders to purchase our first investment property in Tampa. Was patient and kind and also connect me with a real estate agent.”
Ok
Okissa
Purchased Investment Property in Tampa.
Pre-qualify for a DSCR Loan as an international investor
No U.S. credit history. No personal income verification. Qualify based on property’s rental income.
