Michigan Bridge Loan Center
A bridge loan in Michigan solves the oldest timing problem in real estate: the house you want is for sale now, but your down payment is locked inside the house you have not sold yet. Bridge financing borrows against the equity in your current home so you can close on the new one first, then repay the bridge loan when your old home sells.
The payoff is a stronger position on both sides of the move. You can write an offer with no home-sale contingency, which matters in competitive markets from Grand Rapids to Metro Detroit, and you can move once, on your own schedule, instead of scrambling into a short-term rental between closings.
Get Your Free Mortgage Quote
Answer a few quick questions and a licensed Michigan loan officer will follow up with your personalized quote — no obligation.
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How does a bridge loan in Michigan work?
A bridge loan is short-term financing attached to your current primary residence. Instead of waiting for the sale to free up your equity, the lender advances it to you now so you can use it as the down payment on your next primary home. When your current home closes, the sale proceeds pay off the bridge loan, and you are left with just the mortgage on your new house.
The program is limited to single-family residences, condos, and townhomes, and it can be partnered with any type of purchase loan on the new home, from conventional to FHA to VA. The loan is structured as a 6-month balloon with interest-only monthly payments, and closing costs can be rolled into the loan and paid from the proceeds, so little or nothing comes out of pocket at closing. Minor debt consolidation may also be considered by underwriting on a case-by-case basis.
Bridge loans belong to the non-QM family of alternative mortgage programs, alongside options like Michigan DSCR loans for investors. You can see the full lineup on our Michigan non-QM loans page, or call 800-555-2098 to talk through which structure fits your move.
Bridge loan payments, rates, and fees
The biggest fear about bridge financing for a home purchase is carrying two full house payments at once. The interest-only structure keeps the bridge payment small while you carry it, and the terms are straightforward:
- Interest-only monthly payments on a 6-month balloon term
- Renewable prior to maturity for an additional 6 months for a $2,000 fee
- Closing costs can be rolled into the loan and paid from the proceeds
- 1% interest rate discount for setting up automatic payments (ACH/transfer form and voided check) prior to closing
- Origination fee of $1,500 on loan amounts up to $250,000, or $2,500 on loan amounts of $250,001 to $500,000
Rate locks are valid for 30 days and cannot be extended or re-locked; if a lock expires, the rate defaults to the current market rate at the final closing date. Because a bridge loan is short-term convenience financing, its pricing runs higher than a 30-year mortgage. The honest way to think about the cost is in months, not decades. You carry it only until your old home closes, and for many families the ability to win the right house without a sale contingency is worth far more than a few months of bridge interest.
Key benefits of Michigan bridge loans
- Buy before you sell: Close on your next home first, then sell your current one without the pressure of a hard deadline hanging over the listing.
- No home-sale contingency: Sellers routinely pass over contingent offers in multiple-offer situations. Bridge financing lets you compete like a cash-strong buyer.
- Unlock trapped equity: Years of appreciation and principal payments become your down payment now instead of after closing day.
- Move once, on your timeline: No double move, no storage unit, no month-to-month rental between houses.
- Low carrying cost: Interest-only monthly payments keep the bridge affordable while you sell, closing costs can be rolled into the loan, and automatic payments earn a 1% rate discount.
Found the right house before listing yours? That is the exact moment a bridge loan earns its keep. Check Your Bridge Options
Michigan bridge loan requirements
Bridge lending is driven primarily by the equity in your current home. Guidelines are subject to change and to full credit approval, but the program looks for:
- Loan attached to your current primary residence: single-family residences, condos, and townhomes only
- Minimum credit score of 680
- Maximum debt-to-income of 45%, counting the payments on the departing residence, the bridge loan, and the new residence; DTI can expand to 50% when the combined loan-to-value is under 70%
- Maximum 85% CLTV on loan amounts up to $250,000, or 75% CLTV on loan amounts of $250,001 to $500,000
- Standard valuation is a desktop appraisal with an exterior inspection; loan amounts of $400,000 or more require a borrower-paid full third-party appraisal
- A marketable home, priced realistically for your local market
One requirement deserves plain talk: the loan must be repaid at the end of its term whether or not your home has sold. The 6-month term, renewable prior to maturity for an additional 6 months for a $2,000 fee, gives most Michigan sellers plenty of runway, but a bridge loan is not the right tool for a home that is overpriced or hard to market. If your house does not sell in time, options include renewing the term, refinancing the balance, or reducing the price to move the property. We would rather walk through that scenario with you before closing than after, so ask us to stress-test your plan. Realistic pricing on the departing home is the single best protection.
Closing is convenient by design: a title search is required unless the bridge loan is in first lien position, and the loan closes with a mobile notary at your current primary residence. Bridge loans are originated by an in-house mortgage banker at Plains Commerce Bank, are not available in all states, and are subject to full credit approval.
Apply for a bridge loan in Michigan
The fastest way to find out whether bridge financing fits your move is a short conversation. Call our team at 800-555-2098 and tell us about both properties, the one you own and the one you want. A licensed loan officer will compare bridge structures, estimate your available equity, and map the timeline from offer to payoff.
You can also fill out the quote form above and we will review your information and follow up promptly with your options.
How does a bridge loan work?
A bridge loan borrows against the equity in your current primary residence so you can close on your next home before the old one sells. The loan is attached to your current home, funds the down payment on the new purchase, and can be partnered with any type of purchase loan. When your current home closes, the sale proceeds pay off the bridge loan.
Can I buy a house before selling mine?
Yes. That is exactly what bridge financing is for. It converts your trapped equity into a down payment now, so you can make a non-contingent offer on the new home and sell your current one afterward, on your own schedule.
Do bridge loans require monthly payments?
Yes. The loan is a 6-month balloon with interest-only monthly payments, which keeps the carrying cost low while your home sells. Setting up automatic payments (ACH/transfer form and voided check) prior to closing earns a 1% interest rate discount, and closing costs can be rolled into the loan and paid from the proceeds.
How much equity do I need for a bridge loan?
Bridge financing allows a maximum combined loan-to-value of 85% on loan amounts up to $250,000, or 75% on loan amounts of $250,001 to $500,000, counting your existing mortgage plus the bridge loan. The more equity you have in your current home, the more down payment the bridge loan can unlock.
What happens if my home doesn't sell before the bridge loan is due?
The loan must still be repaid at the end of its 6-month term. If the home hasn't sold, the loan can be renewed prior to maturity for an additional 6 months for a $2,000 fee, or you can refinance the balance or reprice the home to sell. This is why we recommend realistic pricing from day one and why we walk through the exit plan with you before you commit.
How does closing work on a bridge loan?
Closing is designed to be convenient. The loan closes with a mobile notary at your current primary residence, and a title search is required unless the bridge loan is in first lien position. The standard valuation is a desktop appraisal with an exterior inspection; loans of $400,000 or more require a borrower-paid full third-party appraisal. Bridge loans are not available in all states and are subject to full credit approval.
Should I use a bridge loan or a HELOC?
A HELOC is usually cheaper if you open it well before listing your home, but most banks will not open a HELOC on a house that is already for sale. If your home is listed or about to be, a bridge loan is generally the workable option. Call 800-555-2098 and we'll compare both against your timeline.
Submit your information now and a licensed residential loan officer will contact you within 24 hours. If you need immediate assistance then please call us now at 800-555-2098!
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