Michigan State University, state government and the region's hospitals keep Greater Lansing's rental demand steady. Jumbo-size loans here usually finance student rental portfolios near campus or a block of small buildings, rarely a single home.
In short: LendingStreet finances jumbo DSCR loans from about $1.5M to $5M+ on 1-8 unit investment property in Lansing, East Lansing, Okemos, Meridian Township and Delta Township, qualified on rent with no W-2s or tax returns. In Michigan, a property's taxable value uncaps when it sells, and rentals do not receive the principal residence exemption, so taxes after purchase are often much higher than the seller's. Max LTV varies by program.
East Lansing's student rental neighborhoods near campus, along with older homes converted to multiple units, make up much of the high-volume rental stock. Okemos, Haslett and East Lansing's Glencairn and Whitehills neighborhoods have the area's larger homes.
In Lansing, the Downtown, Old Town and REO Town areas have small apartment buildings, and Delta Township and Grand Ledge on the west side have newer homes leasing to government and GM workers.
| Property type | Typical areas | Main underwriting focus |
|---|---|---|
| Student rental portfolio | East Lansing near MSU | Rental licenses and occupancy limits |
| 5-8 unit building | Old Town, Downtown Lansing, REO Town | Rent roll and building age |
| Executive home | Okemos, Haslett, Whitehills | Rent support; lower LTV common |
Most Lansing-area rentals finance far below $1.5M. A jumbo loan here usually means consolidating several student houses, buying a group of small buildings or financing a large home in Okemos.
Student rentals near MSU can produce strong rent by the bedroom, but leases turn over every year and East Lansing's licensing rules limit occupancy, so the documented rent is what counts.
Executive homes in Okemos lease well to MSU faculty, hospital physicians and state officials, but that tenant pool is small. Appraisers often have only a few comparable leases, so a recent signed lease on the subject home carries a lot of weight.
Under Michigan's Proposal A, a property's taxable value is capped while one owner holds it, then uncaps to its state equalized value after a sale. A seller who owned for years may have been paying on a taxable value far below today's level.
Rentals also do not get the principal residence exemption, so they pay additional school operating millage. Michigan charges state and county transfer taxes, typically a seller cost. Budget taxes on the uncapped value and non-homestead millage.
Lansing winters bring snow loads, ice dams and freeze risk, and many student houses near campus are older homes with additions and conversions. Carriers will ask about heating systems, roofs and wiring.
The Red Cedar and Grand rivers have flood-prone stretches, including parts of East Lansing and Lansing.
This example is illustrative and not a quote. An investor refinances six licensed student rentals near campus into one blanket loan. Each house is licensed for four occupants and rents for about $2,600 a month. The combined appraised value is $2,100,000 and rent totals $15,600 a month. Taxes are budgeted at $4,550 a month and insurance at $1,100.
Sized at 70% LTV, the loan would be $1,470,000 with estimated principal and interest of about $9,904. Adding taxes, insurance and the other costs gives a payment near $15,554 and a DSCR of about 1.00x, just at the standard minimum. Dropping to 60% LTV makes the loan $1,260,000, the payment about $14,139 and the ratio about 1.10x, in exchange for taking $210,000 less out of the portfolio.
Michigan's non-homestead taxes are a large share of the payment. Student turnover also means underwriters want signed leases for the coming school year where available.
| Item | 70% LTV | 60% LTV |
|---|---|---|
| Loan amount | $1,470,000 | $1,260,000 |
| Estimated principal and interest | $9,904 | $8,489 |
| Property taxes (budgeted) | $4,550 | $4,550 |
| Insurance | $1,100 | $1,100 |
| Total monthly payment | $15,554 | $14,139 |
| DSCR at $15,600 rent | About 1.00x | About 1.10x |
| Equity remaining | $630,000 | $840,000 |
East Lansing requires rental licenses with inspections and limits the number of unrelated occupants per dwelling, with some neighborhoods restricted in how many rentals are allowed. Lansing also requires rental registration and inspections.
Confirm that every property you finance has a current license for the occupancy you are underwriting. Short-term rentals near campus see demand on football weekends and graduation, but local rules and HOA limits apply.
The core rules do not change above $1.5M. The property's rent has to cover the full payment, usually at 1.0x or better; you document assets and credit (620 minimum), not income; and you can close in an LLC on a 30-year term. Purchase, rate-and-term and cash-out are all available up to about $5M+.
The differences are in degree. Underwriters look harder at value and rent on a big balance, ask for larger reserves and often cap leverage below the 80% purchase and 75% cash-out levels used on smaller loans. Treat any leverage figure as varies by program until you see a term sheet.
A 5-8 unit building qualifies on its combined rent like any other DSCR property, though max LTV can be lower than on 1-4 units. Investors with five or more rentals can also look at a blanket portfolio loan: one closing, one payment, portfolio pricing and release provisions for sales.
Around MSU, investors often reach jumbo size by combining licensed student houses into one blanket loan; release provisions let them sell individual houses without refinancing the rest.
Have these ready before you ask for terms.
Send the address, price or value, rents and target leverage through the form below, or call (877) 298-1001. We will run the ratio at more than one loan amount and come back with options.
Michigan uncaps taxable value at sale, and rentals pay non-homestead school millage. Budget on the uncapped value.
Yes. East Lansing requires rental licenses and enforces occupancy limits. Confirm each license matches the occupancy you are underwriting.
Yes, through a blanket portfolio loan on five or more properties, qualified on combined rent.
Reserve requirements rise with loan size and vary by program. Expect to show more months of payments in liquid assets on a jumbo file than on a smaller DSCR loan.
No. The loan qualifies on the property's rent compared with the full payment. You still need a 620 or higher credit score, reserves and entity documents if you close in an LLC.
Yes. LLC borrowers are standard. You will usually sign for the loan personally as well, and the lender reviews the operating agreement.
No. Our investor loans are business-purpose loans on non-owner-occupied property. We do not finance a home you live in, full time or part time.
2-3 competing quotes from 30+ capital sources. No credit pull. No commitment.
By clicking, you provide express written consent to be contacted by LendingStreet (NMLS #1734316) via SMS, phone, or email, possibly using automated technology, regarding your loan inquiry. Reply STOP to opt out. Consent is not required to obtain services. See our Privacy Policy and Terms.