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Making informed real estate decisions starts with having the right knowledge. At HomeAbroad, we offer US mortgage products for foreign nationals & investors and have a network of 500+ expert HomeAbroad real estate agents to provide the expertise you need. Our content is written by licensed mortgage experts and seasoned real estate agents who share insights from their experience, helping thousands like you. Our strict editorial process ensures you receive reliable and accurate information.
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.
Cities like Detroit, Grand Rapids, and Ann Arbor are seeing renewed interest thanks to a mix of urban redevelopment, strong rental yields, and relatively low entry prices. Whether it’s long-term rentals near universities or short-term vacation homes by the lakes, Michigan’s diverse market fits a range of investment strategies.
With HomeAbroad’s DSCR loans, international investors can finance Michigan properties based on rental income alone no need for US credit history, income, or residency. It’s a flexible, hassle-free path to entering a stable Michigan market with solid long-term potential.
Table of Contents
Key Takeaways
1. Foreign nationals can qualify for a DSCR loan from HomeAbroad without a US credit score, local income proof, or residency. Qualification is based on the property’s projected rental income, not your personal financials.
2. DSCR loans eliminate the need for tax returns, W-2s, or pay stubs, simplifying the process for non-resident investors looking to purchase rental property in the US.
3. Michigan offers strong rental yield potential, especially in cities like Detroit, Traverse City, and Grand Rapids, making it an attractive market for international real estate investors seeking consistent cash flow.
4. HomeAbroad provides end-to-end support for foreign nationals, from identifying profitable investment properties through our AI-driven investment property search platform to setting up a US LLC, opening a bank account, and closing remotely with expert guidance.
What is a DSCR Loan for Foreign Nationals?
A DSCR loan (Debt Service Coverage Ratio loan) from HomeAbroad is a specialized mortgage option for foreign nationals looking to invest in US real estate. Instead of relying on personal income or US credit history, this loan qualifies you based on the property’s rental income. If the property pays for itself, you’re in a strong position to get approved.
With Michigan’s average rental yield at 6.9%, global real estate investors can leverage this loan to acquire income-generating properties while maximizing returns in key markets like Detroit, Grand Rapids, and Ann Arbor.
Since DSCR loans offer more flexibility by focusing on rental income rather than your personal financials, lenders typically set interest rates slightly higher than conventional mortgages. Check the latest DSCR loan interest rates here.
How to Calculate the DSCR Ratio?
The Debt-Service Coverage Ratio (DSCR) determines whether a property’s rental income is sufficient to cover its mortgage payments. Lenders use this ratio to assess risk and loan eligibility.
Here is the DSCR Formula:
Example
At HomeAbroad, we typically require a DSCR of 1.0 or higher, ensuring the property’s rental income covers mortgage payments. But what if your property falls just short of this requirement?
I recently worked with an investor who struggled to secure a DSCR loan because his property had a DSCR of just 0.81. Most lenders turned him down, but we helped him secure financing with our DSCR loan, allowing him to move forward with his investment.
For those with a DSCR between 0 - 1, our No-Ratio DSCR program allows qualification, making real estate investing possible even in challenging cases. However, it will require a slightly larger down payment (a 5% hit to LTV) and a higher interest rate.
You can also learn and become an expert in calculating DSCR through this guide on DSCR calculator.
DSCR Loan Requirements in Michigan for Foreign Nationals
HomeAbroad makes it easier for international buyers to invest in Michigan real estate with DSCR loans designed specifically for foreign nationals.
You don’t need a US credit score or residency status. Our process is built for overseas investors, offering flexible terms, simplified documentation, and the option to close remotely.
Here’s how our lending criteria compare to conventional lenders when it comes to DSCR loans for foreign nationals.
| Features | HomeAbroad DSCR Loan | Other Lenders |
|---|---|---|
| DSCR Ratio | >= 1 for best terms, <1 eligible with higher down payment. We provide DSCR Loans for foreign nationals at a DSCR ratio as low as 0.75, which means you are eligible even if your rental covers just 75% of the mortgage | Usually 1.2 and above, which means the property must generate 20% more income than expenses. |
| Credit Score | You can qualify without a US credit score. We underwrite the loan based on your property’s rental income, not personal income. | Other lenders require you to have a minimum credit score of 620. Many lenders also do not consider foreign credit reports. |
| Down Payment | Low down payment of 25%, which gives you higher leverage and leaves more capital free for other investments. | About 30 – 35%, which increases your upfront cost. |
Additional DSCR Loan Requirements Foreign Nationals Should Know
Beyond DSCR ratio, down payment, and credit score, there are a few more requirements and considerations that can significantly impact your ability to qualify for a DSCR Loan as an international real estate investor.
- No Income Verification Required: Unlike banks and other conventional lenders that demand tax returns or job history, we qualify you purely on projected rental income.
- Flexible ownership structures: Purchase in your name or set up a US LLC, whichever suits your legal and tax strategy.
- Lower cash reserve requirements: We typically ask for 6 months of reserves, while others may demand up to a year’s worth.
- Remote closing support: You can complete the entire process from your home country.
- US bank account assistance: We also help you open an account for rent collection and mortgage payments.
At HomeAbroad, we specialize in helping foreign nationals invest confidently in the US market. Our team brings years of experience working with international buyers and offers personalized support from property search to closing. With our AI-powered platform, you can discover high-yield properties in Michigan, and our experts will structure DSCR loan solutions that align with your investment goals.
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 where we lend.
- Detroit
- Ann Arbor
- Grand Rapids
- Lansing
- Flint
- Kalamazoo
- Warren
- Dearborn
- Rochester Hills
- Troy
- Farmington Hills
- Sterling Heights
- Novi
- Livonia
Let’s look at the success story of one of our clients who secured a DSCR loan to achieve their investment goals in Michigan.
Case Study: How Daniel Secured his First Investment Property in Michigan
Daniel, an investor based in Canada, 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 Rent: $2,100
Loan Details:
Loan Amount: $183,750
Down Payment: $61,250 (25%)
Loan Term: 30 years fixed
Monthly Mortgage (PITIA): $1,603
DSCR Calculation:
DSCR = Gross Rental Income / PITIA
DSCR = $2,100/ $1,603
DSCR = 1.31
This investment turned out to be a smart financial decision for Daniel. With a DSCR of 1.31, the property not only covers its mortgage payments but also generates a positive cash flow of $497.
Steven Glick,
Director of Mortgage Sales,
HomeAbroad Loans
Why This Worked for Daniel:
- No US Credit or Income Needed: Daniel qualified for the DSCR loan without a US credit score, income verification, or employment history, just based on the property’s rental income.
- Strong DSCR and Positive Cash Flow: : With a DSCR of 1.31, the rental income exceeded the monthly mortgage, giving Daniel a healthy $497 in monthly cash flow from day one.
- Expert Guidance Throughout: With support from Steven Glick, a seasoned loan officer at HomeAbroad, Daniel received personalized guidance to choose the right loan product and close without delays.
HomeAbroad specializes in helping foreign nationals invest confidently in US real estate. From securing the right DSCR loan to handling cross-border financing challenges, we offer tailored mortgage solutions and expert support every step of the way so you can build a profitable portfolio in the US without the usual complications.
Top Places to Invest in Michigan with a DSCR Loan
Michigan offers strong investment potential, with an average rental yield of 6.9%, making it a great market for global 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 top investment cities in Michigan:
City | Rental Type | Rental Yield |
|---|---|---|
Detroit | Long-Term | 20.5% |
Traverse City | Short-Term | 16.7% |
Ann Arbor | Short-Term | 15.6% |
Grand Rapids | Long-Term | 6.5% |
Kalamazoo | Long-Term | 6.3% |
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: $78,601
- Average Rent: $1,349/month
What this means for investors: Strong cash flow, low entry costs, and high DSCR potential, making it ideal for foreign nationals looking to start investing in the US market.
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 great income upside.
- Median Home Price: $442,856
- Average Rent: $2,238
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 most consistent rental markets in the Midwest. Demand comes from students, professors, researchers, and visiting professionals, with year-round occupancy and premium rental rates.
- Median Home Price: $531,286
- Average Rent: $2,316/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: Michigan’s Economic Growth Engine
Grand Rapids has emerged as a top city for young professionals, healthcare jobs, and design/tech startups. It offers balanced affordability and rental demand, with growing interest in both single-family and multifamily investments.
- Median Home Price: $304,282
- Average Rent: $1,670/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: Quiet Market, Strong Fundamentals
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: $240,395
- Average Rent: $1,270/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
Specific Considerations for Investing in Michigan for Foreign Nationals
Michigan offers solid investment potential from urban redevelopment in Detroit to lakeside vacation homes in Traverse City. But like any state, it comes with its own set of nuances that foreign buyers need to understand to make smart, long-term decisions.
Here are key factors to consider:
– 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 off-seasons.
– 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
From Lake Michigan to the inland lakes of northern Michigan, waterfront properties are in demand. But they also come with higher insurance, shoreline regulations, and strict building codes. Some areas restrict short-term rentals or require environmental permits for renovations.
– Seasonal Markets Shift Demand
Tourist towns like Traverse City, Petoskey, and Holland thrive in summer but slow down in winter. If you’re investing in short-term rentals, expect strong cash flow in peak season and lower occupancy the rest of the year. Winterizing your property is a must.
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 position it as a compelling long-term play. But smart investors will look beyond the obvious to tap into Michigan’s evolving landscape.
Here are a few future-facing factors to consider:
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 completion in 2025), 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 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 gaining attention from 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 due to limited supply and increasing 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 looking for a balance of affordability and growth potential should keep this city on the radar.
Get a HomeAbroad DSCR Loan in Michigan as a Foreign National
HomeAbroad is a one-stop solution for global real estate investors, offering tailored DSCR loans with competitive rates and flexible terms to help maximize investment returns. Here’s what sets us apart:
- Flexible Loan Options – DSCR loans available even for properties with a DSCR as low as 0.75.
- No US Credit History Required – Perfect for foreign nationals and international investors.
- AI-Driven Investment Property Search Platform – Discover cash flow positive properties that pays for themselves and generates additional income.
- Expert Guidance – Our team simplifies complex processes, ensuring you understand every step.
- Fast Processing – We value your time and strive for quick approvals and closings.
With HomeAbroad, you get tailored DSCR loans, expert guidance, and smart tools to help you find and finance profitable properties. We’re here to support your journey every step of the way.
Get a DSCR loan with HomeAbroad today and start growing your real estate portfolio!
Frequently Asked Questions
Is it hard to get a DSCR loan in Michigan?
No, getting a DSCR loan in Michigan is easier than traditional loans because it doesn’t require personal income verification. As long as the property’s rental income covers the mortgage, investors can qualify without W-2s, tax returns, or pay stubs.
How long does it take to get approved for a DSCR loan in Michigan?
At HomeAbroad, we make the DSCR loan approval process seamless, ensuring investors secure financing within 30 days. Our streamlined approach helps you close deals faster and grow your real estate portfolio with ease.
What documents do you need for a DSCR loan?
Generally, you will need documents such as investment property appraisals, rental agreements, a 1007 rent schedule, and other paperwork related to the loan application process.
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