Lansing's rental market rests on state government, Michigan State University and auto manufacturing. A DSCR rate-and-term refinance replaces short-term money on a leased Lansing-area rental with long-term financing based on the rent.
In short: A DSCR rate-and-term refinance from LendingStreet pays off the existing loan on a leased Lansing rental and sets a long-term payment sized on the rent. Expect a $150,000 minimum loan, up to 80% LTV on some programs, a 1.0x standard minimum DSCR and a 620 credit floor, with no W-2s or tax returns. Lansing investors buy older homes on the east and west sides, renovate them, pass the city's rental inspection, and refinance once leased.
Lansing investors buy older homes on the east and west sides, renovate them, pass the city's rental inspection, and refinance once leased. Others own student rentals near MSU in East Lansing. A rate-and-term refinance pays off the short-term loan without pulling cash. Lansing values are moderate, so a $150,000 minimum loan usually means two-unit homes, renovated houses in stronger neighborhoods, suburban rentals in Okemos, Holt or Delta Township, or several rentals refinanced together. State government and hospital jobs keep demand steady, and many tenants stay for years, which helps the ratio hold after the refinance.
The goal is not cash. It is replacing interest-only, short-term debt with a 30-year amortizing loan available on most programs, so the property carries itself and the next maturity date disappears.
Investors buy on Lansing's Eastside, Westside, Old Town and REO Town, along Moores River Drive, and in suburbs such as Okemos, Haslett, Holt, Delta Township, Grand Ledge, DeWitt and Mason. East Lansing serves MSU students.
The stock includes 1910s to 1950s frame and brick homes, many converted to two units near campus, and post-war ranch homes in the suburbs. Older homes need electrical, plumbing and roof work.
Lansing appraisals compare with similar older homes nearby, and renovation quality matters a lot. Near MSU, student rentals have their own comps. Suburban rentals in Okemos and Holt have higher values and strong school districts, which helps rent. The appraiser will check that each unit in a two-unit house is legal. Keep the certificate of compliance and the scope of work ready. Sales near state government offices downtown and in Old Town can vary, so give the appraiser your list of updates.
The two refinances look similar on paper but solve different problems. Rate-and-term ends the existing debt; cash-out turns equity into money for the next property.
Seasoning rules decide how soon after purchase you can refinance and whether the new loan is based on the appraised value or your cost basis. They vary by program, so confirm them before you order the appraisal.
| 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 two-unit house on Lansing's Eastside, appraised at $232,000, with a $166,000 balance on a short-term loan. Rent is $1,900 a month across two units. The new loan pays off the existing balance and rolls in about $4,800 of closing costs, for a loan of $170,800, or about 74% of value.
On 30-year amortization, estimated principal and interest is about $1,165 a month. Adding taxes of about $360 and insurance of about $140 brings the total to about $1,665, so the DSCR is about 1.14x against the 1.0x standard minimum. Lansing's millage makes the tax line large relative to the price. The same rent in a lower-millage suburb would produce a stronger ratio.
| Item | Amount |
|---|---|
| Appraised value | $232,000 |
| Existing loan payoff | $166,000 |
| Closing costs rolled in | $4,800 |
| New loan amount | $170,800 (about 74% LTV) |
| Estimated principal and interest | $1,165 |
| Taxes, insurance and HOA | $500 |
| Total monthly payment | $1,665 |
| Monthly rent | $1,900 |
| DSCR | About 1.14x |
Michigan caps taxable value while you own a property, uncaps it after a sale, and rentals pay non-homestead millage. Lansing's millage is higher than many suburbs. Budget on the post-purchase bill.
Michigan's transfer taxes apply to sales, not refinances. Budget for title, recording, appraisal and lender fees.
Older homes with dated wiring or roofs price higher. Some areas near the Grand and Red Cedar rivers are in flood zones.
Lansing requires rental registration and inspection for a certificate of compliance. East Lansing has its own rental licensing and occupancy limits near campus. Have current certificates before you apply. Lansing's certificate of compliance has to be renewed on a set cycle, and an expired certificate can delay a refinance. Check the expiration date before you apply. East Lansing's rental licensing is stricter near campus, with occupancy limits that can affect how many tenants can legally share a house.
Our investor loans are business-purpose loans on non-owner-occupied property. Expect a credit check, an appraisal with a rent schedule, and a title review.
Order the payoff letter early and ask your current lender about any per-diem interest and release fees. Delays there are the most common reason a refinance closing slips.
Get a quote with the form below or call (877) 298-1001. We review the payoff, the rent and the costs, then confirm loan size and timing. See our Michigan rate-and-term refinance page for statewide details.
Most refinances close in a few weeks once the appraisal and title are in. If your short-term loan matures soon, tell us the date up front so we can plan around it.
Have it ready. The city requires rental registration and inspection, and an expired or missing certificate is one of the most common reasons a Lansing refinance slows down.
Yes, if it has a current East Lansing rental license and the lease fits occupancy limits.
Michigan uncaps taxable value after a sale, rentals pay non-homestead millage, and Lansing's millage is relatively high.
Yes. We refinance 1-8 unit rentals across Ingham, Eaton and Clinton counties, including Delta Township, Grand Ledge and DeWitt.
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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