Grand Rapids has a tight rental market, a healthcare-driven economy and a historic housing stock that includes large Victorian homes split into apartments. Those buildings, along with lakeshore homes to the west, are where jumbo balances come from.
In short: LendingStreet offers jumbo DSCR loans of about $1.5M to $5M+ in the Grand Rapids area, qualified on rent with no W-2s or tax returns. Large files here include 5 to 8 unit conversions in Heritage Hill, homes in East Grand Rapids and Ada and portfolios. The city's rental certification program and Michigan's uncapping on sale are the local items to check first.
Heritage Hill, one of the largest urban historic districts in the country, has large Victorian homes, many converted to multiple units. Eastown, East Hills and Midtown have older homes and small buildings near the Medical Mile, Grand Valley State's downtown campus and Corewell Health.
East Grand Rapids, Ada and Cascade have larger homes, and the Lake Michigan shoreline near Holland and Grand Haven, in Ottawa County, has high-value lakefront property.
Rental demand is supported by Corewell Health, Grand Valley State, furniture and manufacturing employers and steady in-migration. Vacancy has been low for years, which helps lease-up on renovated units.
| Property | Areas | Check |
|---|---|---|
| 5 to 8 unit conversion | Heritage Hill, Eastown, East Hills | Rental certification, historic review |
| Large home | East Grand Rapids, Ada, Cascade | Uncapped taxes, comparable leases |
| Lakeshore home | Holland, Grand Haven area | STR rules, shoreline insurance |
At LendingStreet, jumbo DSCR financing generally means a loan of about $1.5M to $5M+ on a non-owner-occupied rental with 1 to 8 units. You can use it to buy, to refinance into better terms, or to pull cash out.
The file is underwritten on the rent: monthly rent divided by principal, interest, taxes, insurance and any HOA dues. Most programs want that ratio at 1.0x or better, with a 620 minimum credit score and no personal income documents. LLCs can borrow, and 30-year terms are available. The leverage ceiling of 80% LTV on a purchase and 75% on cash-out tends to drop as the balance rises; it varies by program.
Michigan caps taxable value increases while one owner holds a property, but on sale the taxable value uncaps and resets to the state equalized value. Rentals do not get the principal residence exemption, so they pay additional school operating millage.
Michigan charges state and county transfer taxes on sales, usually paid by the seller. Budget on the uncapped, non-homestead bill.
Kent County values have climbed with the market, so the gap between a long-held capped value and an uncapped one can be large. Ask the city or township assessor for an estimate of the post-sale taxable value before you set your offer.
This example is illustrative and not a quote. Consider a 5 to 8 unit building. An investor buys an eight-unit converted Victorian in Heritage Hill for $2,050,000, with each unit certified by the city. Rent totals $15,400 a month, with taxes estimated at $2,600 a month and insurance at $850.
Borrowing $1,538,000, which is 75% LTV, gives estimated principal and interest near $10,623 and a full payment near $14,073: a DSCR of about 1.09x. Borrowing $1,332,000 at 65% LTV gives estimated principal and interest near $9,200, a payment near $12,650 and a DSCR of about 1.22x.
Historic conversions need the legal unit count to match the city's records. Underwriting uses the certified unit count.
| Item | 75% LTV | 65% LTV |
|---|---|---|
| Loan amount | $1,538,000 | $1,332,000 |
| Estimated principal and interest | $10,623 | $9,200 |
| Property taxes | $2,600 | $2,600 |
| Insurance | $850 | $850 |
| Total monthly payment | $14,073 | $12,650 |
| Monthly rent | $15,400 | $15,400 |
| DSCR | About 1.09x | About 1.22x |
Heritage Hill's Victorians are over a century old, with complex roofs, masonry and older systems. Insurers want updated electrical, heating and fire separation. Lake-effect snow adds wear.
Grand Rapids requires rental properties to be certified with periodic inspections. A building without current certification can delay closing, and the city can limit leasing until it passes. Ask the seller for the current certificate and the date of the last inspection.
The city has generally limited short-term rentals to homes where the host lives, and lakeshore townships have their own rules. Most jumbo files here run on 12-month leases.
Grand Rapids has some jumbo-value homes, but many large requests here are conversions or portfolios.
Underwriting tightens as the loan grows. Reserves are typically higher, appraisals are reviewed more closely and a second valuation may be required on some programs. At the top end, few nearby sales and leases match the subject property, so documentation of rent matters.
If coverage falls short, you can bring more cash, resize the loan or look at a sub-1.0 DSCR program.
For refinances, the same rules apply with a few changes: cash-out is capped at 75% LTV and frequently set lower for big balances, rate-and-term goes to 80% LTV on some programs, and the ownership period required before cash-out varies by program.
Gather these before you ask for terms; a complete package gets a faster answer.
Our investor loans are business-purpose loans on non-owner-occupied property. See our Michigan jumbo DSCR page for statewide context.
Tell us the property, the rent and the loan amount you have in mind. We will check the DSCR at more than one loan size using local tax and insurance figures, then lay out the options. Use the form below to get a quote, or call (877) 298-1001.
Yes. Rental properties in the city must be certified, with periodic inspections. Get the current certificate from the seller before closing.
There is no stated maximum on our DSCR programs. Jumbo loans commonly run from about $1.5M to $5M+, with leverage and reserves set by program and by the size of the loan.
The city has generally limited STRs to homes where the host lives, which does not fit an investor loan. Lakeshore townships set their own rules; confirm before relying on nightly income.
Yes, in the sense that no W-2s or tax returns are required. The property's rent has to cover the full payment, and credit, reserves and funds to close are still verified.
On a sale, taxable value resets to the state equalized value, so the new owner's taxes often rise. A refinance does not trigger it.
No, but it is common and fully allowed. If you use one, we will need the formation documents and operating agreement, and you will typically sign for the loan personally.
No. Our investor loans are business-purpose loans on non-owner-occupied property. The home must be held as a rental.
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