Michigan Bridge Loans
🌏 Buy Before You Sell
Edward Kalavitz · Michigan Mortgage Lender & Broker · MLO NMLS #138424 · Private Mortgage Guarantee LLC · Licensed Michigan Realtor #6501386956 · Turnkey Realty LLC
In This Guide — Michigan Bridge Loans
Need to buy your new Michigan home before selling your current one? Michigan bridge loans provide short-term financing to bridge the gap. Learn how Michigan bridge loans work and whether they’re right for your situation with Edward Kalavitz, your trusted Michigan mortgage broker.
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Mortgage Rates in Michigan
Competitive pricing personalized to your scenario. Rates shown reflect 740+ credit, 30-year fixed terms unless noted.
Purchase Loans
Conventional Purchase
15-Year Conventional
FHA 30-Year Purchase
VA 30-Year Purchase
USDA Purchase & Refinance
USDA 30-Year Purchase
FHA Streamline Refi
Conventional Refinance
Jumbo & High-Balance
Jumbo / High-Balance
What Are Michigan Bridge Loans?
Michigan bridge loans are short-term financing solutions that help homeowners buy a new home before selling their current one. They bridge the gap between purchasing your new property and receiving the proceeds from selling your existing home, giving you the flexibility to move on your timeline rather than waiting for your current home to sell first.
In Michigan’s competitive real estate market, timing can make or break a deal. If you find your dream home but haven’t sold your current house yet, Michigan bridge loans let you make a strong, non-contingent offer without having to wait. This can be especially valuable in hot markets like Grand Rapids, Ann Arbor, and the Detroit suburbs where desirable homes sell quickly.
As a Michigan mortgage broker with over 25 years of experience, I help homeowners throughout all 83 Michigan counties explore Michigan bridge loans and alternative financing options. Let me help you determine if a bridge loan is the right solution for your situation. I’ve helped dozens of clients navigate Michigan bridge loans successfully.
💡 The Bridge Loan Concept
Think of Michigan bridge loans as temporary financing that uses the equity in your current home to provide funds for your new home’s down payment. Once your existing home sells, you repay the bridge loan from the sale proceeds.
How Michigan Bridge Loans Work
Michigan bridge loans typically work in one of two ways:
Option 1: Separate Bridge Loan
You take out a bridge loan in addition to your new mortgage. The bridge loan covers your down payment and possibly closing costs for the new home.
- Bridge loan amount based on current home equity
- You’ll have three loan payments temporarily (bridge + old mortgage + new mortgage)
- Bridge loan paid off when current home sells
Option 2: Combined Bridge Loan
Some lenders offer a single large loan that covers both homes, then converts to a permanent mortgage when your current home sells.
- One loan covers both properties
- Higher loan amount initially
- Reduces to standard mortgage after sale
Example Scenario
Let’s say you own a Michigan home worth $400,000 with a $200,000 mortgage balance (50% equity = $200,000). You want to buy a new home for $500,000. Here is how Michigan bridge loans would work:
- Bridge loan amount: Up to $160,000 (80% of $200,000 equity)
- Use funds for: 20% down payment ($100,000) + closing costs
- When current home sells: Pay off bridge loan from proceeds
When to Use Michigan Bridge Loans
Good Candidates for Bridge Loans
- ✓ Found your dream home but haven’t sold your current one
- ✓ Need to make a non-contingent offer to compete
- ✓ Significant equity in your current home (40%+)
- ✓ Current home is market-ready and will sell quickly
- ✓ Strong income to support temporary multiple payments
- ✓ Good credit score (680+)
- ✓ Need to relocate for job by specific date
Not Ideal If…
- ✗ Little equity in current home
- ✗ Current home needs significant repairs before selling
- ✗ Local market is slow with long days-on-market
- ✗ Income can’t support multiple mortgage payments
- ✗ Credit score below 680
- ✗ Not comfortable with higher interest rates
⚠️ Important Consideration
Michigan bridge loans work best when you have high confidence your current home will sell quickly. If your home has been on the market without offers, a bridge loan may not be the right choice.
Michigan Bridge Loan Requirements
To qualify for Michigan bridge loans, borrowers must generally meet these standards:
Michigan Bridge Loan Costs and Rates
Interest Rates
Michigan bridge loans have higher interest rates than traditional mortgages because they’re short-term and carry more risk:
- Typical range: 8–12% (varies by market conditions)
- Prime rate plus: Usually prime + 2–3%
- Variable vs fixed: Most are variable rate
Fees to Expect
- Origination fee: 1–2% of loan amount
- Appraisal: $400–$600 (your current home)
- Closing costs: Similar to standard mortgage
- Administration fees: Varies by lender
- Early payoff fee: Some lenders charge this
The Michigan Bridge Loan Process
Evaluate Your Situation
Calculate your equity, assess your home’s marketability, and determine if you can handle multiple payments while carrying Michigan bridge loans.
Get Pre-Approved
Apply for Michigan bridge loans pre-approval along with your new mortgage pre-approval.
List Your Current Home
Many lenders require your home to be listed or market-ready before approving a bridge loan.
Find Your New Home
Make offers with confidence knowing you have Michigan bridge loans financing in place.
Close on Bridge Loan
Close on the bridge loan and new home mortgage simultaneously or sequentially.
Move Into New Home
Take possession of your new home while continuing to market your current one.
Sell and Pay Off
When your current home sells, use proceeds to pay off the bridge loan.
Pros and Cons of Michigan Bridge Loans
Alternatives to Michigan Bridge Loans
1. Home Equity Line of Credit (HELOC)
Open a HELOC on your current home before listing it. Usually lower rates than Michigan bridge loans.
2. Contingent Offer
Make your offer contingent on selling your current home first. Less competitive but lower risk than Michigan bridge loans.
3. Rent-Back Agreement
Sell your current home first but negotiate to rent it back from the buyer until you close on the new one.
4. 401(k) Loan
Borrow from your retirement account for the down payment. Repay yourself with interest.
5. Family Loan
Short-term loan from family members, documented properly for mortgage compliance.
6. Sell First, Then Buy
The traditional approach—sell your home, move to temporary housing, then buy. Safest but least convenient alternative to Michigan bridge loans.
✓ Let Me Help You Decide
Every situation is different. I’ll analyze your equity, timeline, and local market conditions to recommend the best approach—whether that’s Michigan bridge loans or an alternative solution.
Risks to Consider
Your Home Doesn’t Sell
The biggest risk with Michigan bridge loans is if your current home doesn’t sell before the loan term expires. You may need to reduce your price significantly, extend the loan (if possible), or potentially sell the new home.
Market Changes
If the market shifts during your bridge loan term, your current home’s value could decrease, affecting your payoff ability.
Rate Increases
Most Michigan bridge loans have variable rates. If rates rise during your term, your costs increase.
Carrying Costs Add Up
Between two mortgages, bridge loan interest, insurance on both homes, and utilities, carrying costs can add up quickly when using Michigan bridge loans.
Tips for Bridge Loan Success
Price your home right
Be realistic—overpricing extends your Michigan bridge loans term
Prepare before listing
Make repairs and stage your home before listing
Choose the right agent
Work with an experienced listing agent
Have a backup plan
Know what you’ll do if the home doesn’t sell quickly
Budget conservatively
Plan for the full bridge loan term, not early payoff
Keep reserves
Don’t drain your savings for down payment
Stay flexible on closing
Be prepared to negotiate timing with buyers
Frequently Asked Questions About Michigan Bridge Loans
QWhat is a bridge loan and how does it work?
A bridge loan is short-term financing that allows you to buy a new home before selling your current one. It uses the equity in your current home as collateral and is repaid when your existing home sells. Michigan bridge loans typically last 6–12 months and have higher interest rates than traditional mortgages.
QHow much can I borrow with a Michigan bridge loan?
Michigan bridge loans typically allow you to borrow up to 80% of the combined value of both homes minus existing mortgage balances. Most lenders cap bridge loans at $500,000–$1,000,000. The amount depends on your equity, income, credit score, and the lender’s requirements.
QWhat credit score do I need for a bridge loan in Michigan?
Michigan bridge loans typically require a credit score of 680 or higher, with many lenders preferring 700+. Because bridge loans are higher risk for lenders, credit requirements are stricter than conventional mortgages. Strong credit history and low debt-to-income ratios also help approval odds.
QWhat are the interest rates on Michigan bridge loans?
Michigan bridge loan interest rates are typically 2–3% higher than conventional mortgage rates, ranging from 8–12% depending on market conditions and your qualifications. Rates are higher because bridge loans are short-term and carry more risk for lenders.
QWhat happens if my home doesn’t sell before the bridge loan expires?
If your home doesn’t sell before the bridge loan term ends, you may need to extend the loan (with additional fees), refinance into a different loan product, reduce your asking price to sell faster, or in worst cases, sell the new home. This is why realistic pricing and a solid selling strategy are crucial before getting Michigan bridge loans.
QAre there alternatives to bridge loans in Michigan?
Yes, alternatives to Michigan bridge loans include: HELOC on your current home, home equity loan, contingent offer (sell first, then buy), rent-back agreement with your buyer, 401(k) loan, or family loan. Each has pros and cons depending on your timeline and financial situation.
QHow long does it take to close a Michigan bridge loan?
Michigan bridge loans can close in as little as 2–3 weeks, faster than traditional mortgages. The expedited timeline is one of the benefits, allowing you to act quickly when you find your new home. Having your documentation ready and your current home market-ready speeds up the process. Contact me to get started.
QCan I get a Michigan bridge loan if I still have a mortgage?
Yes, most Michigan bridge loan borrowers still have mortgages on their current homes. The bridge loan is typically structured as a second lien on your current property or as part of the new home financing. You’ll need sufficient equity (typically 20–40%) in your current home to qualify for Michigan bridge loans.
Free Tools & Next Steps
📊 Is a Michigan Bridge Loan Right for You?
Our free Mortgage Advisor analyzes your situation and helps you compare Michigan bridge loans against alternatives like HELOCs and contingent offers — personalized results in 60 seconds.
🏠 Know What Your Current Michigan Home Is Worth
Your home’s equity determines how much you can borrow with Michigan bridge loans. Start by estimating your home’s current market value.
📄 Ready to Get Pre-Approved and Make Your Move?
Get your pre-approval letter in minutes so you can make a confident offer on your new Michigan home while your current home sells.
Related Resources
Home Equity Loans
Alternative to bridge financing
Learn More →Mortgage Process
Understand the loan process
Learn More →Refinancing Options
Restructure your existing loan
Learn More →All Loan Programs
Compare all your options
See All Programs →Why Work With Edward Kalavitz
Dual-licensed Michigan Mortgage Loan Originator (NMLS #138424) and licensed Michigan Realtor (#6501386956) — so the financing and the property are handled by one person who answers for both.
You are never required to use Edward for both. Financing and real estate representation are separate services — you are free to use any lender or any agent you choose, and use of one service is never a condition of the other.
Why Work With Me?
- ✓ 25+ years mortgage experience
- ✓ Multiple bridge loan options
- ✓ Also licensed Realtor
- ✓ Can help with both transactions
- ✓ Available 7 days a week
- ✓ Serving all of Michigan
Bridge Loan Quick Facts
- ✓ Term: 6–12 months
- ✓ Rates: 8–12%
- ✓ Credit: 680+ required
- ✓ Equity: 20–40% needed
- ✓ LTV: 80% max
- ✓ Repaid when home sells
Popular Loan Programs: → FHA Loans → Conventional Loans → Home Equity Loans → Refinancing → All Loan Programs
Helpful Resources: 📊 Mortgage Calculator ❓ Mortgage FAQ 🔍 NMLS Consumer Access 🏛 CFPB
Watch: Meet Edward
Get to know Edward Kalavitz — learn how he helps Michigan families buy, sell, and finance homes with dual-licensed real estate and mortgage expertise.
What Clients Say About Working with Edward
These are verified Google reviews from Edward’s Google Business Profile. Edward is dual-licensed — Mortgage Loan Originator (NMLS #138424) and Michigan Realtor — so reviewers include both financing and real estate clients. Your Michigan mortgage broker can tell you how much room this leaves you.
“Very Professional and Thorough”
“Edward’s is very professional and thorough. Had a great experience working with him. Everything went very smooth.”
“Great to Have 2 in 1”
“Ed was very responsive, knowledgeable, and made our first home buying experience great! He’s a relator and lender, which was great to have “2 in1”. We were able to look at houses and run number the same day. He was very flexible with times we needed to set up showings, as well as very informative and organized with paperwork! I appreciate his expertise greatly!” Ask your Michigan mortgage broker to sanity-check the numbers you have been quoted.
“Works Hard 24/7”
“Ed is wonderful to work with! He is very thorough, experienced, and friendly. Ed works hard 24/7 to give you the best mortgage experience and is always able to help with whatever you need!”
“Above and Beyond”
“Edward is a great relator and loan officer. He helped my fiance and I buy our first home. We called him back when we were ready to sell and buy our forever home. He again went above and beyond to make the process swift and easy. I recommend him to my friends and family who are looking into buying, selling or refinacing their home!”
“Closing Came Sooner Than Anticipated”
“Edward was up front, professional and most helpful in first determining if I was a good candidate for a mortgage re-Fi. My case was Probably not the easiest , however, he made my “homework” manageable. The closing came sooner than anticipated , thanks to his perseverance, knowledge and professionalism .”
“Not Only My Realtor — My Friend”
“Edward was an excellent help in the most stressful time of my life. My son passed away in 2018 and I had to sell his home. Edward alleviated some stress by being patient, organized and communicated thoroughly the entire process. He not only was my realtor/loan officer but he was my friend! Highly recommend him for any home needs!”
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