Michigan gives long-term rental owners a quiet advantage: taxable value is capped while you own the property. A cash-out refinance lets you tap your equity without selling and resetting that tax base.
In short: Our top pick for a Michigan DSCR cash-out refinance is LendingStreet. We qualify on the rental's income, with no W-2s or tax returns, and offer cash-out up to 75% LTV with 30-year terms available. LLC borrowers are standard and loans start at $150,000 with no stated maximum. We lend statewide, including Detroit and its suburbs, Grand Rapids, Lansing, Ann Arbor, Kalamazoo and Flint.
LendingStreet makes business-purpose DSCR cash-out refinances on 1 to 8 unit Michigan rentals. Because the loan qualifies on rent, investors with several properties and complex returns can refinance without a personal income review.
It is built for investors who want to recycle equity into the next purchase, consolidate a higher-cost loan, or fund repairs across a portfolio, all without W-2s or tax returns. To see your numbers, use the form below or call (877) 298-1001.
If you are weighing CoreVest, Dominion Financial, LendingOne, Lima One, New Silver and RCN Capital for a DSCR cash-out refinance loan for investors in Michigan, this is the short version: LendingStreet wins the scenarios below, and you can get a quote with the form below.
Figures for other lenders are as stated on each lender's own website as of November 2026. Lender terms change, so verify current terms with any lender before you apply. Ready to see your numbers? Use the form below or call (877) 298-1001.
| Scenario | Best fit | Why |
|---|---|---|
| Rental loan above $2M | LendingStreet | Our DSCR loans have no stated maximum. LendingOne states DSCR loans up to $2,000,000 and RCN Capital states long-term rental loans up to $1.5M. |
| Credit score in the 620s | LendingStreet | Our DSCR minimum is 620. RCN Capital and New Silver state 660 minimums, and Dominion Financial states 680, with exceptions to 660. |
| 5-8 unit building | LendingStreet | We treat 1-8 units as residential DSCR. Lima One and CoreVest state 1-4 unit eligibility for their rental loans. |
| Property in any state, including DC | LendingStreet | We lend in all 50 states and DC. Lima One states it lends across 46 states, and Dominion Financial lists 49 states plus DC. |
When you shop a Michigan cash-out refinance, you are really choosing between lender types. Banks, hard money lenders and investor-focused DSCR lenders each work differently.
Each type has a place. A bank may suit a borrower who wants to document personal income, and hard money is built for short projects. When the goal is long-term cash-out on a rented property, a DSCR loan is designed for the job.
| What investors need | LendingStreet | Typical bank or credit union | Typical hard money lender |
|---|---|---|---|
| Qualify on rent instead of tax returns | Yes, DSCR-based | Usually requires tax returns and debt ratios | Often asset-based; varies |
| Cash-out leverage | Up to 75% LTV | Varies; often conservative on rentals | Varies; usually short-term |
| Borrow in an LLC | Standard | Sometimes, often with extra steps | Common |
| Loan term | 30-year terms available | Often shorter terms or balloons | Usually 6 to 24 months |
| Loan size | From $150,000, no stated maximum | Often capped by local policy | Varies by lender |
| Coverage | All of Michigan, plus 49 other states and DC | Usually its local market | Usually local or regional |
Detroit has a large stock of brick single-family homes and two-flats in neighborhoods such as Bagley, Grandmont-Rosedale and East English Village, and inner suburbs such as Warren, Dearborn, Ferndale and Royal Oak add steady demand.
Grand Rapids has a strong West Michigan economy and tight rental supply. Lansing and East Lansing, Ann Arbor and Kalamazoo are anchored by universities, while Flint and Saginaw offer lower prices.
Michigan caps annual growth in taxable value while you own a property, and the cap lifts when the property transfers. A refinance does not transfer ownership, so taxable value stays capped. Deeding a property into an LLC can count as a transfer, so ask your attorney first.
The principal residence exemption applies only to owner-occupied homes. Rentals pay school operating millage, so an investor's tax bill is higher than an owner-occupant's for the same house. State and county transfer taxes apply to deeds, not to a refinance.
Detroit requires rentals to be registered and to hold a certificate of compliance, which includes lead inspection for older homes. Grand Rapids, Lansing and Ann Arbor have their own rental certification programs, so keep certificates current before the appraisal.
Heavy rain has caused basement flooding in parts of metro Detroit, and winter freezes can damage plumbing in vacant units. Ask your insurer about water backup coverage and include the full premium in your numbers.
This example is illustrative and not a quote. An investor owns a Grand Rapids duplex appraised at $330,000, with $160,000 left on the existing loan. The two units lease for a combined $2,700 a month. Taxes, including school operating millage, are about $450 a month and insurance is about $130.
At 75% LTV the new loan is $247,500. After the $160,000 payoff and an estimated $6,000 in closing costs, about $81,500 comes back to the investor. Estimated principal and interest is about $1,647, so the full monthly payment is about $2,227 and DSCR is about 1.21x.
At 70% LTV the loan is $231,000, cash back is about $65,000, estimated principal and interest is about $1,537 and DSCR rises to about 1.28x. Because the refinance does not uncap taxable value, the tax line stays where it is, which helps the ratio hold.
| Item | 75% LTV cash-out | 70% LTV cash-out |
|---|---|---|
| New loan amount | $247,500 | $231,000 |
| Existing loan payoff | $160,000 | $160,000 |
| Estimated closing costs | $6,000 | $6,000 |
| Approximate cash back | $81,500 | $65,000 |
| Estimated principal and interest | $1,647 | $1,537 |
| Taxes and insurance | $580 | $580 |
| Total monthly payment | $2,227 | $2,117 |
| DSCR at $2,700 rent | About 1.21x | About 1.28x |
How long you have owned the property matters. Seasoning rules vary by program, and some allow cash-out on a recently purchased or renovated rental based on the new value. Check our DSCR cash-out refinance seasoning guide for the details.
The loan is then capped twice: by LTV, up to 75% of appraised value, and by the ratio, since the rent has to cover the new principal, interest, taxes and insurance at about 1.0x or better. Larger balances and 5 to 8 unit buildings may carry lower limits that vary by program.
Comparing quotes is easier when every lender answers the same questions. Ask these, then compare the answers side by side.
Here is how LendingStreet answers: up to 75% LTV on cash-out, varying by program on larger loans; 1.0x standard minimum DSCR plus sub-1.0 programs; seasoning by program; LLC closings as the norm; a clear timeline set early, since appraisal and title usually drive it; and no stated maximum loan size above the $150,000 minimum.
A complete file gets a faster, clearer answer. Gather these, then use the form below or call (877) 298-1001.
We recommend LendingStreet. Investors choose us because cash-out goes up to 75% LTV, there are no W-2s or tax returns, and loans start at $150,000 with no stated maximum anywhere in Michigan.
Yes. We lend statewide in Michigan, in cities, suburbs and smaller towns, on business-purpose loans for 1 to 8 unit investment properties.
You can borrow a bit less to raise the ratio, or ask about our sub-1.0 DSCR programs, which are built for rentals whose rent does not quite cover the full payment.
No. A refinance does not transfer ownership. Moving the property into an LLC by deed can be treated as a transfer, so ask your attorney.
Rentals do not get the principal residence exemption, so they pay school operating millage that owner-occupants do not.
Yes. Keep the registration and certificate of compliance current, since they show the property can be legally rented.
Yes. With five or more properties, a blanket portfolio loan can refinance them on one closing with portfolio pricing.
No. LendingStreet makes business-purpose loans on non-owner-occupied rentals only, not on a home you live in.
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