Looking for a lender in Michigan that has the best rates on investment loans

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Looking for a lender in Michigan that has the best rates on investment loans

Elan Adler
Member since 2019 · 9 posts · 23 votes

I am under contract on a duplex in Michigan for $400,000. I am looking for a lender with the best rates for a conventional investment loan. Does anyone have any recommendations? That would be much appreciated.

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  • Devin PetersonBusiness Member
    Lender · Sarasota, FL · Member since 2022 · 2k+ posts · 665 votes
    6d

    Elan, Congratulations on being under contract that is extremely exciting news! The best lender with the best rates and terms may very well be a national option. Since you are looking for an investment specific mortgage, you have a lot of options. Take a look at the find a lender page as well. My #1 advise is compare and contrast. Work with an investment focused broker who can help you comp all the possible options out there for you!

    [email protected]860-538-3672
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  • Pierre Guirguis
    Lender · Marlboro, NJ · Member since 2025 · 243 posts · 149 votes
    6d

    Elan, congrats on getting it under contract. I work primarily with investment property financing and would be happy to run the duplex through our options.

    If conventional ends up being the best fit, absolutely go that route, but depending on your leverage, credit and projected rents, it may be worth comparing a DSCR option alongside it as well. Rate is important, but I'd compare total costs and structure side by side.

    Feel free to shoot me a message with the deal details and I can give you an idea of what we're seeing

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  • Stacy RaskinBusiness Member
    Lender · Member since 2022 · 1k+ posts · 503 votes
    5d

    If looking to do a conventional loan the mortgage broker or lender will need an NMLS license in the state the property is located in. The rate will be determined based on the borrower's middle mortgage credit score, LTV and some additional factors such as loan size. Loan Level Price Adjustments (LLPAs) are risk based upfront fees added to conventional mortgages. Examples of these are credit score, LTV, whether it's a primary home or an investment property. The loan will be underwritten based on your personal income and debt to income (DTI) ratios.

    Conventional loans are approved through AUS (automated underwriting system). They follow guidelines from Fannie Mae and Freddie Mac. The lender can then put additional requirements called overlays on loan requirements. General rates conform to market conditions but can go higher between individual lenders depending on how the lender sets their rates in relation to the market. These are generally large lending institutions that fund millions monthly.

    Also, the mortgage professional will either get paid through inflating the rate called lender paid compensation to cover the fee or having you pay the fee at the end of the loan called borrower paid compensation. Lender paid compensation is more common in conventional loans and borrower paid compensation is more common in DSCR loans. DSCR loans also have guidelines that are more specific to the lender as they do not use AUS and are sold to a different investor pool after closing the loan. The DSCR loan guidelines varies by lender and the investor pool is agreeing to buy the loans when borrowers satisfy the underwriting guidelines. Knowing more about how rates are determined will show there is some variety for conventional loans but a certain amount of it is determined by the process and the market. Making sure you feel comfortable with the person you are working with is key.

    [email protected]818-770-0340
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  • Marty JohnstonPro Member
    Lender · Wauwatosa, WI · Member since 2016 · 571 posts · 203 votes
    5d

    @Elan Adler Congrats on the new duplex. It's exciting. I noticed that you stated a conventional investment loan. However, you might be surprised: in some of the non-QM/DSCR space, I'm seeing pricing actually better with some of the non-QM loans as opposed to standard Fannie/Freddie conventional loans. As you're shopping, be sure to look at all options! You could still find options with floor rates down to mid-to-low 6s today, depending on your credit score, LTV requested, etc. Or, if you were looking at something like a 5/6 arm, buying down the rate at like a 70% LTV, you could see as low as 6.125. Or you could be at an 80% LTV, seeing something closer to 7 or high 6s. Lots of variables to play with as you're shopping around looking at rates, depending on your goals for down payment, closing costs, and so on.

    Hope this helps!

    [email protected]414-600-0123
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  • Erik EstradaBusiness Member
    Lender · Member since 2022 · 6k+ posts · 1k+ votes
    4d

    Hi Elan,

    Happy to take a look at your scenario and connect

    [email protected]818-269-7983
    LuxePrivate Investments LLC 572 Reviews
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  • Brandye Richardson
    Lender · Tampa Fl · Member since 2026 · 17 posts · 6 votes
    1d

    Elan, congratulations on getting the Michigan duplex under contract. To compare lenders accurately, collect the closing date, requested loan amount, down payment, projected market rents, taxes, insurance, credit range, reserves and any repairs. A conventional investor loan may offer the best rate if the borrower qualifies; a DSCR structure can be useful when rental income is stronger than personal income documentation. Compare total cash to close, points, prepayment penalties and the rate-lock period—not just the stated rate.

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