For home buyers and homeowners
DSCR Loans in Michigan
Debt-Service Coverage Ratio (DSCR) loans are designed specifically for real estate investors. These non-traditional loans allow qualification based on rental income rather than personal income or employment history. If your investment property can pay for itself, you may qualify, no tax returns or W-2s required.
- No credit pull to talk
- Licensed broker, NMLS 1647301
DSCR Loan
Key benefits
No Income Verification
Approval is based on rental income, not personal income.
More Buying Power
For investors with growing portfolios.
Interest-Only Options
Maximize cash flow in the early years.
DSCR against a conventional investment loan
Both buy rentals. One asks what you earn, the other asks what the property earns. For an investor with several properties that difference decides whether you can keep buying at all.
| Requirement | DSCR | Conventional investment |
|---|---|---|
| What actually qualifies you | The rent against the property's own payment. Your salary is not part of the calculation. | Your personal income and debt ratio, including every mortgage you already hold. |
| Tax returns | Not required. | Required, usually two years, and write-offs work against you. |
| How many properties you can hold | No conventional cap. Investors use it precisely because they have run out of room. | Financing tightens after a handful and stops entirely at ten. |
| Buying inside an LLC | Normal and expected. | Generally not permitted. The loan is in your name. |
| Money held back after closing | Reserves are expected, commonly several months of payments per property. | Reserves apply too, but tied to your overall profile. |
| Short-term rental income | Often usable, with documented history or a market rent schedule. | Rarely usable. |
Run the numbers on a property
Guidelines
Guidelines for this loan
If your details are close to these guidelines, we encourage you to apply or contact us.
DSCR Calculator
A DSCR loan qualifies on the property, not on your personal income. Enter the rent and the numbers below to see the coverage ratio a lender would measure.
The property
Rent is normally taken from the signed lease, or from the appraiser's rent schedule when the unit is vacant. Coverage is measured against the full payment including taxes, insurance and association dues.
Most DSCR programs look for 1.00 or higher, with better pricing at 1.25 and above. Some allow a lower ratio with a larger down payment or reserves. Minimums are set by each lender.
- Loan amount
- $0
- Principal & interest
- $0
- Taxes, insurance, HOA
- $0
- Total monthly payment
- $0
- Monthly cash flow
- $0
Coverage is gross rent divided by the full monthly payment.
Estimates only, for illustration. Not a loan commitment, an offer of credit, or a rate quote. Actual figures depend on underwriting, credit, income, assets, appraisal and property eligibility. Align Lending LLC, NMLS #2041154, is an independent mortgage broker and does not lend directly. Equal Housing Opportunity.
Questions about this loan
If yours is not here, ask it on the call. There are no dumb questions.
How is the DSCR ratio calculated?
Divide your property’s gross monthly rental income by the total monthly mortgage payment (PITI). A DSCR of 1. 0 or higher typically qualifies.
Can I still qualify if the property does not quite cover itself?
Some lenders may allow DSCR below 1. 0 with strong reserves, but it’s less common.
Do I need a signed lease already in place?
Yes, or a market rent analysis to project income if newly purchased.
Does it matter how many properties I already own?
DSCR loans allow multiple financed properties, including portfolio loans.
Can I use short-term rental income?
Yes, in many cases, so long as documented income supports the DSCR ratio.
Buying your first rental? Start with whether the property actually works before you choose a product.
What our clients say
Travis and the team at Align Lending are hands down the best mortgage option for anyone looking to buy or refinance. Travis spent as much time as it took to be sure I was in the best spot to buy a house and stuck with me through it all. I am so proud of my home and none of it would have been possible without Travis.
Very professional and knowledgeable, highly recommend for your lending needs!
Can’t say enough great things about Samantha and her team at Align Lending! Highly recommend
Samantha is a rockstar. We had an unusual situation with our lending and she went above and beyond to help us get our mortgage approved. I truly feel that if we had worked with any other lender or broker, we would not have been able to close on time, or maybe at all. I am beyond happy with the work Samantha did for us and how she handled the entire process. I cannot say enough good things about the work she did for me and my husband. I will be recommending Align Lending and Samantha to anyone that needs a lender.
Just bought my first home and Ryan Greiner made the mortgage process incredibly quick and easy to understand. He worked hand in hand with my realtor and made sure everything I needed was ready when it had to be. Definitely reccomend Align Lending and Ryan both!
As first time homebuyers we made sure to do our research before choosing a mortgage broker. We decided to go with Align Lending and could not have made a better choice. We worked with Samantha and she made the entire process smooth and easy. The customer service was top notch! The professional, yet caring approach was just what we were looking. We highly recommend Align Lending!
Individual experiences. Results vary.
The first conversation does not have to turn into anything
Tell Samantha what you are trying to do, and she will tell you what actually matters in your situation. If the answer is that you should wait, she will say that too.
- 1
Tell us what you are trying to do
Not what product you want. What you are actually trying to accomplish.
- 2
We look at your situation
A licensed Align loan officer works out what matters most for you specifically.
- 3
You leave with a plan
Your options, the tradeoffs, and your next step. No obligation to go further.
Start with your question
Talk it through firstAlign Lending LLC, NMLS #2041154, is a mortgage broker. Samantha Shelton, NMLS 1647301. Equal Housing Opportunity. Licensed in Michigan, Ohio, North Carolina, Florida, Louisiana and Texas. Program guidelines on this page are general and change over time; they are not a credit decision, a preapproval, a commitment to lend, or an offer of credit. Approval depends on your full application, the property and the lender's current guidelines.
