$50,000 to $10,000,000
1 year, 2 years, 3 years
12% - 18%
Loan Type Bridge Loan, Hard Money Loan
Property Type 2-4 Units, SFR
Michigan Lenders
Below are 91 Lenders that offer loans on investment properties in Michigan. Their Interest Rates range from 4% to 20%. These lenders have loan amounts between $10,000 and $1,000,000,000.
$3,000,000 to $50,000,000
3 years
9%
Loan Type Bridge Loan, Hard Money Loan, Second Mortgage
Property Type Condo, Hotel, Industrial, Land Entitled, Land Non-Entitled, Mobile Home Park, Multi Family, Office, Retail, Self-Storage, Special-Use
$15,000 to $1,000,000
1 year, 2 years, 10 years, 15 years, 20 year
9% - 16%
2
Loan Type Bridge Loan, Construction Loan, Hard Money Loan, Rehab Loan
Property Type 2-4 Units, Agriculture, Assisted Living, Automotive, Cannabis Related, Hotel, Industrial, Land Entitled, Land Non-Entitled, Manufactured Home, Medical Office, Mixed use, Mobile Home Park, Modular Home, Multi Family, Office, Place of Worship, Restaurant, Retail, Self-Storage, Senior, SFR, Shopping Center, Special-Use, Strip Center, Student Housing, Warehouse
$100,000 to $20,000,000
2 years
10%
1
Loan Type Bridge Loan, Commercial Loan, DSCR Loan, Hard Money Loan, Rehab Loan, Rental Portfolio
Property Type 2-4 Units, Industrial, Mixed use, Multi Family, Office, Restaurant, Retail, SFR, Shopping Center, Strip Center, Warehouse
$30,000 to $5,000,000
18 months
10% - 12%
1.5 - 3%
Loan Type Bridge Loan, DSCR Loan, Hard Money Loan, Rehab Loan
Property Type Multi Family, SFR
$100,000 to $6,000,000
2 years
10.5% - 12%
1 - 2%
Loan Type Bridge Loan, Construction Loan, DSCR Loan, Hard Money Loan, Rehab Loan
Property Type 2-4 Units, Mixed use, Multi Family, SFR
Loan Type Bridge Loan, Construction Loan, DSCR Loan, Rehab Loan
$1,000,000 to $50,000,000
1 year, 1.5 years, 2 years, 3 years
Loan Type Bridge Loan, Commercial Loan, Construction Loan, Hard Money Loan, Rehab Loan
Property Type Hotel, Land Entitled, Medical Facility, Mixed use, Multi Family, Office, Retail, Student Housing
$100,000 to $3,000,000
30 years
2 - 5%
Loan Type Bridge Loan, Commercial Loan, Construction Loan, Hard Money Loan, Rehab Loan
Property Type 2-4 Units, Industrial, Medical Office, Mixed use, Multi Family, Office, Retail, SFR, Shopping Center, Special-Use, Strip Center
$5,000,000 to $100,000,000
1 year, 2 years
Loan Type Bridge Loan
Property Type Hotel, Industrial, Land Entitled, Medical Office, Multi Family, Retail
Top 10 Cities in Michigan to Get an Investment Property Loan
Investing in real estate in Michigan can be a strategic way to build wealth, thanks to the state’s diverse economic landscape and thriving housing market. Whether you’re eyeing residential rentals, commercial spaces, or multifamily units, knowing where to secure the best financing is key. Here are the top 10 cities in Michigan where you can find favorable conditions for obtaining an investment property loan.
1. Detroit
Detroit, known for its resilience and ongoing revitalization, offers a dynamic real estate market. The city’s lenders are accustomed to working with investors, providing competitive loan products suitable for both small and large-scale projects. Detroit’s affordable property prices and potential for high returns make it a top choice for investment.
2. Grand Rapids
Grand Rapids boasts a strong economy and a growing population, making it an ideal city for investment property loans. The local lenders are experienced in offering loans for both residential and commercial properties, and the city’s real estate market continues to show robust growth.
3. Ann Arbor
Ann Arbor, home to the University of Michigan, presents excellent opportunities for student housing investments. The city’s lenders often provide favorable loan terms for investors looking to capitalize on the consistent demand for rental properties near the university.
4. Lansing
As the state capital, Lansing offers a stable real estate market with numerous opportunities for investment. The city’s lenders are competitive, providing various loan options tailored to both residential and commercial property investments.
5. Kalamazoo
Kalamazoo’s real estate market is gaining attention for its affordability and growth potential. Investors can find attractive loan options here, particularly for multifamily properties. The city’s lenders are well-versed in catering to the needs of real estate investors.
6. Troy
Troy, a thriving suburb of Detroit, offers a strong lending environment for investment properties. The city’s lenders provide competitive rates and terms, especially for those investing in commercial spaces and high-end residential rentals.
7. Flint
Flint is undergoing a significant transformation, making it an interesting location for real estate investors. The city’s lenders are eager to support revitalization efforts, offering favorable terms for investment property loans, particularly in areas targeted for redevelopment.
8. Novi
Novi, known for its growing economy and suburban appeal, presents solid opportunities for investors. The city’s lenders are familiar with financing residential rental properties and commercial ventures, providing a range of loan products to suit different investment strategies.
9. Royal Oak
Royal Oak, with its vibrant downtown and strong rental market, is a top location for investment property loans. Lenders in the area offer competitive rates for both new investors and seasoned professionals looking to expand their portfolios.
10. Dearborn
Dearborn, with its diverse economy and proximity to Detroit, offers a promising environment for real estate investments. The city’s lenders provide flexible financing options for various property types, making it easier for investors to secure the loans they need.
How to Get an Investment Property Loan in Michigan
Securing an investment property loan in Michigan is a critical step toward building a successful real estate portfolio. With the state’s diverse real estate market, investors have plenty of opportunities, but the process requires careful planning and the right approach. Here’s a guide to help you navigate the steps of obtaining an investment property loan in Michigan.
1. Evaluate Your Financial Position
Before applying for a loan, assess your financial health. Lenders will look at your credit score, debt-to-income ratio, and available cash reserves. A strong credit score and sufficient funds for a down payment (typically 20% to 30% of the property’s value) will increase your chances of securing favorable loan terms.
2. Explore Different Types of Investment Property Loans
Michigan offers a variety of loan options tailored to different investment strategies. Consider the following types of loans:
- Bridge Loan: Ideal for short-term financing, especially if you plan to renovate and quickly sell or lease the property.
- Commercial Loan: Suitable for office buildings, retail centers, and other commercial real estate investments.
- Construction Loan: Provides funds in stages for building new properties from the ground up.
- DSCR Loan: Based on the property’s income relative to its debt payments, perfect for income-generating properties.
- Equity Loan: Tap into the equity of an existing property to finance new investments.
- Hard Money Loan: Easier to qualify for, with shorter terms and higher interest rates, ideal for quick deals.
- Investment Property Line of Credit: Offers flexibility by allowing you to borrow as needed against the equity of your investment properties.
- Land Development Loan: Focuses on financing the development of raw land into usable property.
- Private Money Loan: Provided by private investors, offering more flexibility but often at higher costs.
- Rehab Loan: Designed for properties that require significant repairs or renovations before they can be leased or sold.
- Rental Portfolio Loan: Consolidates multiple rental properties under one loan, simplifying management and financing.
- SBA Loan: Ideal for small businesses that also plan to operate on the property they are purchasing.
- Second Mortgage: Additional financing that is secured against a property with an existing mortgage.
3. Research Michigan’s Real Estate Market
Understand the local real estate market in the area where you plan to invest. Factors like property values, rental demand, and local economic trends can significantly impact your investment’s success. Cities like Detroit, Grand Rapids, and Ann Arbor offer diverse opportunities, so choose your location wisely.
4. Leverage Online Tools to Find the Right Loan
Platforms like LendDing.com provide an efficient way to find the best investment property loans. By inputting criteria such as loan amount, property type, and location, you can quickly identify lenders and loan programs that fit your needs.
5. Compare Lenders
Once you’ve identified potential lenders, compare their interest rates, loan terms, and fees. Lenders who specialize in investment property loans often offer better terms, so it’s worth taking the time to find the right fit.
6. Prepare Your Documentation
Be ready with the necessary documentation to support your loan application. This includes proof of income, tax returns, bank statements, and detailed information about the property you’re purchasing.
7. Submit Your Application
When you’re ready, submit your loan application along with all required documents. The lender will review your financials and property details, and you may need to provide additional information during the process.
8. Close the Deal
If approved, you’ll move forward with closing the loan. This involves signing the final documents and paying any closing costs. Once closed, focus on managing your new investment, whether it involves renovations, leasing, or further property acquisitions.