2025 · Michigan
In 2025, 11,632 investment-property loans worth $4.8B were originated on single-family 1-4 unit homes in Michigan. Here's how those terms compared to the rest of the country.
Investor rate premium
88 bps
U.S. median: 76 bps
Denial rate
20.6%
U.S. median: 17.5%
DSCR / business-purpose
77%
U.S. median: 72%
Median LTV
75%
U.S. median: 74%
Since 2024 in Michigan
Rate premium
88 bps → 88 bps
0 bpsInvestor loans
9,811 → 11,632
+18.6%Denial rate
20.6% → 20.6%
-0.0 ptsDSCR / business-purpose
73% → 77%
+4.0 ptsInvestors in Michigan borrowed at a median rate of 7.5%, versus 6.625% for owner-occupants — a 88 bps premium that ranks 12th of 51 states.
Their applications were denied 20.6% of the time. The leading reasons for denial were collateral, debt-to-income ratio, other.
77% of investor loans were business- or commercial-purpose — the category that includes DSCR and LLC-held loans — and 26% were cash-out refinances. The typical loan-to-value was 75%, implying about 25% down.
In 2025, the median investment-property loan in Michigan carried a rate of 7.5% versus 6.625% for an owner-occupant — a premium of 88 bps. That ranks 12th of 51 states (1 = highest premium).
20.6% of investment-property applications were denied in Michigan in 2025, the 8th-highest denial rate among the 51 states. The most common denial reasons were collateral, debt-to-income ratio, other.
77% of investor loans in Michigan were flagged as primarily business or commercial purpose — the bucket that includes DSCR and LLC-held loans (7th of 51). The median loan-to-value was 75%.
Source: CFPB / FFIEC HMDA combined Modified LAR (loan-level public dataset, early release), 2025. Single-family 1-4 unit, site-built loans; financed purchases only.