Flint investors work in a market where prices inside the city are low and the strongest values sit in the surrounding townships. A DSCR rate-and-term refinance replaces short-term rehab money on a leased Genesee County rental with long-term, rent-based financing.
In short: LendingStreet's DSCR rate-and-term refinance replaces short-term or older debt on a Flint rental with a long-term loan qualified on rent, not tax returns. Loans start at $150,000 with up to 80% LTV on some programs, a 1.0x standard minimum DSCR, 620 minimum credit, and LLC borrowers are standard. Rents in Flint and its suburbs are reasonable compared with prices, which draws rehab investors.
Rents in Flint and its suburbs are reasonable compared with prices, which draws rehab investors. Because our loans start at $150,000, most Flint-area refinances we see are in Grand Blanc, Fenton, Flushing, Davison and Flint Township, on small multi-unit buildings, or several city rentals combined into one loan.
With rate-and-term, the new loan covers the payoff and closing costs and nothing more. The payoff is a predictable long-term payment instead of a looming balloon or an extension fee.
Inside Flint, investors look at the College Cultural district near Kettering University and UM-Flint, Mott Park, Woodcroft and the East Village. In the county, Grand Blanc, Fenton, Flushing, Davison, Burton, Swartz Creek and Flint Township offer higher values and steady family tenants.
City housing is largely 1920s to 1950s frame and brick homes built for auto workers, while the townships add 1960s to 2000s ranch and two-story homes. In older homes, expect questions about roofs, electrical, plumbing and whether the water service line has been replaced.
Flint-area appraisals vary widely between the city and the townships. In the city, renovated comparable sales can be sparse, so the appraiser may reach farther for comps; in Grand Blanc or Fenton, comps are usually close and plentiful. Market rent in the townships follows school districts, and well-kept ranch homes rent quickly to families.
If the goal is ending a short-term loan, rate-and-term is usually the cleaner path. If you want equity out for another purchase, a cash-out refinance is the tool, at a lower max LTV.
Before choosing, compare the payoff with what the appraisal is likely to show. If the loan you need is under 75% of value, either option works; if it is closer to 80%, rate-and-term may be the only fit.
| Item | Rate-and-term | Cash-out |
|---|---|---|
| Purpose | Pay off existing debt and closing costs | Pull equity out as cash |
| Max LTV | Up to 80% on some programs | Up to 75% |
| Cash to you | Little or none | Equity above the payoff |
| Seasoning | Varies by program | Varies by program; often longer |
| Best fit | Ending hard money or bridge debt | Funding the next purchase |
This example is illustrative and not a quote. An investor owns a three-bedroom ranch in Grand Blanc Township, appraised at $238,000, with a $170,000 balance on a short-term loan. Rent is $1,800 a month. The new loan pays off the existing balance and rolls in about $4,900 of closing costs, for a loan of $174,900, or about 73% of value.
On 30-year amortization, estimated principal and interest is about $1,193 a month. Adding taxes of about $340 and insurance of about $110 brings the total to about $1,643, so the DSCR is about 1.10x against the 1.0x standard minimum. If the same rent came from a Flint city house with a higher millage, the ratio would drop, which is one reason many investors refinance in the townships.
| Item | Amount |
|---|---|
| Appraised value | $238,000 |
| Existing loan payoff | $170,000 |
| Closing costs rolled in | $4,900 |
| New loan amount | $174,900 (about 73% LTV) |
| Estimated principal and interest | $1,193 |
| Taxes, insurance and HOA | $450 |
| Total monthly payment | $1,643 |
| Monthly rent | $1,800 |
| DSCR | About 1.10x |
Michigan caps a rental's taxable value while you own it, uncaps it to the state equalized value (half of market value) after a sale, and charges non-homestead school millage on rentals. Millage varies widely between Flint and the townships, so the same rent can produce different ratios a few miles apart.
Michigan's transfer taxes apply to sales, not refinances. Budget for title, recording, appraisal and lender fees.
Older Flint homes with dated roofs and wiring can be harder to insure. Basement water and sewer backup coverage are worth pricing, especially on older city homes.
The City of Flint has rental registration and inspection requirements, and townships set their own. Tenants often ask about the water service line, so keep records of any replacement. Short-term rentals are regulated locally. Investors moving a Flint-area rental from rehab money to a DSCR loan should also think about how the city and the townships handle vacant and rental properties differently. A house that sat vacant during renovation may need a fresh inspection before a tenant moves in, and some townships require a rental license renewal on a set cycle. Keep copies of passed inspections with your lease so the refinance file shows a property that is legal to rent today.
Our investor loans are business-purpose loans on non-owner-occupied property. Most borrowers close in an LLC and sign for the loan personally.
The appraisal includes a rent schedule, which sets market rent. The ratio uses the lower of the lease and market rent on many programs, so a lease well above market may not count in full.
Use the form below to get a quote, or call (877) 298-1001. Share the payoff, the leases and your tax and insurance numbers, and we will run the ratio and tell you what the appraisal needs to show. Our Michigan rate-and-term page covers the statewide rules.
We look at the whole picture, including whether a sub-1.0 DSCR program, a lower loan amount or a blanket loan across several rentals would fit better than a single refinance.
Not on its own; our DSCR loans start at $150,000. Investors with several Flint homes often refinance them together on one blanket loan.
The loan is based on the property's rent and value. Keep records of service line replacement and any water testing, since tenants, appraisers and insurers may ask.
Millage is set by each local unit and school district. Genesee County rentals also pay non-homestead millage, so check the exact bill.
Yes. We refinance 1-8 unit rentals across Genesee County and nearby Livingston County communities like Fenton.
Some programs allow sub-1.0 DSCR loans. Lower leverage or a lower payment can also help.
No. Our investor loans are business-purpose loans on non-owner-occupied property.
Yes. LLC borrowers are standard, and you sign for the loan personally.
Seasoning rules vary by program. Some allow a refinance soon after purchase if the property is leased.
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