State Guides
Bridge Loans in Michigan: Your Complete State Guide
What Michigan homeowners should know about bridge loans: how they work here, who they fit, local market notes, and how to buy before you sell.
David Keblaitis
July 8, 2026
4 min
For Michigan homeowners · Brighton-based loan originator
Buy Your Next Michigan Home Before You Sell
Step 1 of 6No credit check
What best describes your situation?
This helps us understand how we can help.
5 questions · about 60 seconds · David reviews your answers himself
A bridge loan lets you put the equity in the home you own now toward the next one, so you can make an offer without a home-sale contingency and move just once.
- Write an offer that doesn’t depend on selling first
- Move once, with no rental or storage unit in between
- Sell your old home after you’ve moved out
- Written backup offer on your current home, for eligible homes
Just need the equity, not a whole move? If you mainly need access to your equity rather than a full buy-before-you-sell plan, Cornerstone has HELOC options through its lending partners that can close in as few as seven days for qualified borrowers. Timing depends on title, the valuation and the lender.
Hear it from David
Buy first, move once
Two short videos from David, each under a minute and captioned: why a contingent offer loses, and how buying first saves you a second move.
Read the transcripts
Buy Before You Sell
You did not lose that last offer on a house because of price. You lost it because you had a contingency attached to your offer.
Unfortunately, if there are competing offers on a house and you are one of the offers, and you have a contingency to sell your current house, your current house is a part of your offer. Your offer is going to go towards the bottom of the pile.
What we have is a Buy Before You Sell program that allows you to make a clean offer on the next house. No contingency. So now it’s a strong offer. It puts you towards the top of the pile and gives you leverage to get the best price on that house.
You get into that house because you just offered non-contingent, and then you can comfortably sell your old house.
So if you’re thinking about buying in Michigan in the next 12 months, check out my website, bridgeloanmichigan.com. Fill out the quiz. No credit check. I answer everything personally. Let’s see if this is right for you.
You Don’t Have to Move Twice
You don’t have to move twice. If you sell first, you have two moves. You’re selling your house that’s cluttered with your family in it, maybe your dogs, then you’ve got to pay for a mover. You’ve got to get your stuff in storage. Then you’ve got to find your next house. Once you find your next house, pay for another mover. Get your stuff out of storage.
This is a better way. If you use our Buy Before You Sell program, then you have a strong offer on your new house and you get the best price on the new house. It’s contingent-free.
Then you’ve got a clean house that you’re selling. It’s empty. You can stage it. It’s going to give you the highest price on that house on the way out.
Buy before you sell. Check out my website, bridgeloanmichigan.com. Let’s see if it’s right for you. I answer all the questions personally. No credit check, no commitments.
Key Takeaways
- A bridge loan is short-term financing secured by your current home’s equity. It helps you buy the next home before the current one sells and is repaid from the sale.
- Buying first lets you make an offer without a home-sale contingency and move once, with no rental or storage in between.
- For eligible homes, Cornerstone’s Buy Before You Sell program includes a written backup offer on your current home at a price agreed before you buy, used only if it hasn’t sold within 180 days of closing on the new one.
- Lenders cap the total borrowed against your current home with a combined loan-to-value limit that varies by lender and program, so equity, not just credit, sets your budget.
- Until the old home is under contract (with financing contingencies cleared, or for Freddie Mac the buyer’s lender commitment), lenders generally qualify you with both housing payments.
- In Michigan, once the new home is your principal residence, Treasury Form 4640 can keep the homestead exemption on the old home for up to three years while it is for sale, unoccupied, not leased and not used for business.
- David Keblaitis (NMLS #167980) of Cornerstone First Mortgage, LLC helps homeowners statewide from Brighton.
How buying before you sell works
A bridge loan is short-term financing secured by the equity in your current home. It covers the gap between buying your next home and selling the one you have.
- 1
Review your equity and budget
David looks at what your current home is worth, what you owe and your income, then tells you which bridge or equity options fit and what your next-home budget looks like.
- 2
Shop with financing lined up
With the bridge financing planned into your pre-approval, you can write an offer that doesn’t hinge on selling your current home first. For eligible homes, a written backup offer on your current home can be in place before you close.
- 3
Close and move once
Close on the new home and move straight in. No rental, no storage unit and no same-day double closing.
- 4
Sell, then pay off the bridge
List the old home empty and show-ready. When it sells, the sale proceeds pay off the bridge financing.
What clients and agents say about David
4.9 out of 5 from 212 reviews on Experience.com, as of October 2026. These are reviews of David's mortgage work in general, not of one loan type.
“David and the team made me feel comfortable with every step of this process. They communicated everything clearly and often. If I ever had a question they were responsive at any time of day. Cannot thank them enough.”
Jack A. · Borrower, Grosse Pointe Woods, MI · October 2026
“David's communication and professionalism throughout the transaction were excellent. With many moving pieces involved for my sellers, he consistently kept me informed every step of the way and helped ensure the process moved forward smoothly.”
Autumn W. · Seller's agent, Ira, MI · May 2026
“David and his entire team, Stacey and Donesha, did incredible work for our not so normal circumstances. They all were informative, pleasant, and dedicated to ensuring we achieved home ownership. We can never thank them enough. I would recommend David and his team to anyone looking to buy a home!”
Alexandra H. · Co-borrower, Evart, MI · October 2026
“David's communication is second to none. He explains in a way buyers can understand easily. Never gets rattled!”
Amy V. O. · Buyer's agent, Grosse Pointe Woods, MI · October 2026
“Dave was extremely kind, knowledgeable, helpful, and available throughout our process.”
Julia K. · Borrower, Commerce Township, MI · September 2026
“David provided A++ mortgage lending service and expertise to my first-time homebuyers. I highly recommend using David for all your home lending needs.”
Susan G. · Buyer's agent, Columbiaville, MI · September 2026
Ways to time buying and selling
A bridge loan is one of several ways to buy first, and there are traditional alternatives too. Here's how they compare, so you can pick the one that fits your equity, income and timing.
Why offer strength matters: Nationally in September 2026, homes received an average of 2.2 offers and 27% of sales were all cash, according to NAR’s REALTORS Confidence Index.
| Option | How it works | Watch out for |
|---|---|---|
| Bridge loan | How it worksShort-term loan against your current home’s equity, repaid when it sells. | Watch out forIt can cost more than a standard long-term mortgage, so compare total costs, and until the old home is under contract lenders usually qualify you with both housing payments plus the bridge. |
| Home equity line (HELOC) opened before you list | How it worksA revolving line on your current home, used for the next down payment. | Watch out forSome lenders won’t open a HELOC on a listed home, the rate is usually variable, the lender can freeze or reduce the line, and the balance generally must be paid off when you sell. |
| Offer with a home-sale contingency | How it worksYour purchase depends on your current home selling first. | Watch out forIn a multiple-offer situation, sellers often prefer offers that don’t depend on another sale, and some will ask for a kick-out clause that lets them keep marketing the home. |
| Sell first, then buy | How it worksSell, move out (or rent back), then shop with cash in hand. | Watch out forYou may move twice and pay for storage or a short-term rental, and you’ll be shopping on a deadline. |
| Keep the current home as a rental | How it worksBuy the next home and rent out the old one instead of selling. | Watch out forLenders only count part of the rent, and in Michigan renting the old home out ends the homestead exemption hold on it. |
| Buy with a larger loan, then recast | How it worksUse a bigger new mortgage, then pay it down from your sale and recast. | Watch out forNot every loan can be recast (FHA, VA and USDA loans generally can’t), and you still need funds to close on the next home. |
| Backup contract (Cornerstone’s Buy Before You Sell program) | How it worksA written backup purchase of your current home at a price agreed before you buy, used only if it doesn’t sell. | Watch out forProgram terms, eligibility and any fees apply, and the backup price is set from a valuation and may be below what an open-market buyer would pay. |
Source: NAR REALTORS Confidence Index, September 2026 survey (2026-10-13)
Selling first vs. buying first
Both paths work. Buying first trades some carrying cost for a cleaner offer and a single move.
Selling first
The usual way, with more moving parts on timing
- Your offer may depend on selling your current home, which sellers with several offers often pass over
- You may have to move twice, with a rental or storage in between
- You keep the house show-ready while your family still lives in it
- Two closings have to line up within days of each other
- You may accept an offer on your home before you’ve found the next one
Buying first with a bridge loan
One move, with more control over timing
- Make an offer without a home-sale contingency
- Move straight into the new home
- Sell the old home empty, cleaned and staged
- Shop for the next home before you list
- One move instead of two
- A written backup offer on the old home, for eligible homes
The trade-offs to plan for
- Carrying costs on two homes until the old one sells
- Bridge financing can cost more than a standard long-term mortgage
- You need enough equity, income and reserves to qualify with both homes
What lenders look at for a Michigan bridge loan
To buy before you sell with a bridge loan, you generally need enough equity in your current home to stay under the lender's combined loan-to-value limit, enough income to qualify while you own both homes, and a realistic plan to sell. The table below shows what each piece means, with the Fannie Mae and Freddie Mac rules that apply.
Sources checked October 17, 2026.
| What they check | What it means |
|---|---|
| Equity in your current home | Lenders cap the total of your existing mortgage plus the bridge at a share of the home’s value (the combined loan-to-value limit). The limit varies by lender and program; the more equity you have, the more room there is for the next down payment. |
| Income to carry both homes | If your current home is under contract but won’t close before you buy, Fannie Mae has lenders qualify you with the housing payment on both homes. The current home’s payment can be left out once there is an executed sales contract and its financing contingencies have been cleared. Source: Fannie Mae Selling Guide B3-6-06, Qualifying Impact of Other Real Estate Owned (2026-09-02) |
| How the bridge is counted | Lenders count a bridge loan payment as debt when they qualify you. Fannie Mae waives that once the current home has an executed sales contract with financing contingencies cleared; Freddie Mac also accepts the buyer’s lender commitment in place of the cleared contingency. Sources: Fannie Mae Selling Guide B3-6-05, Monthly Debt Obligations (2026-08-05); Freddie Mac Seller/Servicer Guide Section 5401.2 (effective 2026-08-05) |
| Where the down payment comes from | Fannie Mae accepts a bridge (swing) loan as a source of funds for the next purchase, as long as it isn’t cross-collateralized against the new home and the lender documents that you can carry the payments on the new home, the current home and the bridge loan together. Source: Fannie Mae Selling Guide B3-4.3-14, Bridge/Swing Loans (checked 2026-10-17) |
| Credit and reserves | Credit minimums and cash-reserve rules are set by each lender and program and change over time, so this site doesn’t quote them. The quiz doesn’t check your credit; David will tell you when a credit review would be needed and what it involves. |
| A realistic plan to sell | The bridge is repaid from your sale, so lenders look at the home’s value, what you owe and how you plan to price and list it. Realistic pricing from day one helps keep the overlap short, but budget for the sale taking longer than planned. |
| Where it’s available | David is licensed in Michigan and works from Brighton with homeowners across the state. Availability depends on the property, your finances and the lender’s program. |
Licensing and credentials
- NMLS #167980David Keblaitis, loan originator
- NMLS #173855Cornerstone First Mortgage, LLC
- FR0021625Michigan DIFS registration
- Brighton, MIOffice · serving all of Michigan
Verify any license at NMLS Consumer Access.
How much equity could you put to work?
Lenders don't lend against all of your equity. They cap the total of all loans on your current home at a share of its value, called the combined loan-to-value (CLTV) limit. Enter your numbers to see how that limit changes what you could borrow against.
The Michigan part of buying before you sell
Owning two Michigan homes for a few weeks or months raises a few state-specific questions about property taxes, transfer tax and disclosures. Here's what the law and the Michigan Department of Treasury say.
Keep the homestead exemption on the old home while it’s for sale
Owning two Michigan homes for a while doesn’t have to cost you the homestead (principal residence) exemption on the old one. With Treasury Form 4640 you can keep it for up to three years while the old home is for sale, not occupied, not leased and not used for business, once you have established your new Michigan principal residence. File by June 1 or November 1 of the first year and again each year by December 31.
Source: Michigan Treasury, Conditional Rescission of the Principal Residence Exemption (checked 2026-10-17)
Budget for higher taxes on the new home
Buying a Michigan home uncaps its taxable value: the year after the sale it resets to the state equalized value, so the new home’s property taxes can be noticeably higher than the seller paid.
Sources: Michigan Treasury, Transfer of Ownership (checked 2026-10-17); MCL 211.27a(3) (checked 2026-10-17)
Plan for transfer tax when the old home sells
When you sell, Michigan’s state real estate transfer tax is $3.75 for each $500 of value and the county tax is 55 cents for each $500 in counties under two million people (up to 75 cents in larger ones), and the seller pays both by law.
Sources: MCL 207.525 (State Real Estate Transfer Tax Act) (checked 2026-10-17); MCL 207.504 (county real estate transfer tax) (checked 2026-10-17); MCL 207.523 (seller is liable for the state tax) (checked 2026-10-17); MCL 207.502 (seller is liable for the county tax) (checked 2026-10-17)
This is general information, not tax or legal advice. Ask your tax preparer or attorney how these rules apply to you.
Frequently asked questions
Straight answers on bridge loans, qualifying with two homes, and the Michigan rules that apply.
What is a bridge loan?
A bridge loan is short-term financing secured by the equity in the home you own now. It helps fund the purchase of your next home before the current one sells, and it is repaid from the sale. That lets you write an offer that doesn’t depend on selling first and move just once.
How much equity do I need?
There isn’t one number. Lenders cap the total of everything borrowed against your current home (your mortgage plus the bridge) at a share of its value, called the combined loan-to-value limit, and that limit varies by lender and program. The more equity you have, the more room there is for your next down payment. The calculator on this page shows how the limit changes the math, and David can tell you which limit applies to your home.
Will I have to qualify with two mortgage payments?
Usually, yes, until the old home is under contract. Fannie Mae has lenders count the payment on your current home, and any bridge loan payment, unless there is an executed sales contract with financing contingencies cleared. Freddie Mac allows the same exclusion with an executed sales contract and, if that contract has a financing contingency, proof it was cleared or the buyer’s lender commitment. Plan on being able to carry both homes for a while; that is the main trade-off of buying first.
Sources: Fannie Mae Selling Guide B3-6-06, Qualifying Impact of Other Real Estate Owned (2026-09-02); Freddie Mac Seller/Servicer Guide Section 5401.2 (effective 2026-08-05); Fannie Mae Selling Guide B3-6-05, Monthly Debt Obligations (2026-08-05)
How is a bridge loan different from a HELOC?
A HELOC is a revolving line of credit on your current home, usually with a variable rate, and the lender can freeze or reduce it. Some lenders won’t open one on a home that is listed for sale, so it is safest to set it up before you list. A bridge loan is built for the move itself: it can be arranged when you are ready to buy and is repaid when the old home sells. If you mainly need access to your equity rather than a full buy-before-you-sell plan, Cornerstone has HELOC options through its lending partners that can close in as few as seven days for qualified borrowers. Timing depends on title, the valuation and the lender.
Sources: CFPB, What you should know about Home Equity Lines of Credit (2022-08); Citizens Bank HELOC disclosures (example lender policy) (checked 2026-10-17)
What if my current home takes a while to sell?
Price the home to sell from day one, and ask what happens if the sale runs past the bridge loan’s term before you sign. Your fallbacks are lowering the price, renting the home out (lenders can count part of the rent), or, for eligible homes, the written backup offer in Cornerstone’s Buy Before You Sell program: a purchase contract at a price agreed before you buy, used only if the home hasn’t sold on the open market within 180 days of closing on the new one. David will walk through these with you before you make an offer.
Sources: Fannie Mae Selling Guide B3-3.8-05, Rental Income: Departing Residence (2026-09-02); Freddie Mac Seller/Servicer Guide Section 5306.1 (effective 2026-04-12)
How does the backup offer work, and will I sell for less?
Before you buy, Cornerstone's Buy Before You Sell program can put a written backup purchase contract on your current home at a price agreed up front. You then list and sell on the open market. If the home hasn't sold within 180 days of closing on the new one, the backup buyer completes the purchase at the contract price. Because the sale of your current home is under contract before you close, lenders can leave its payment out of your qualifying debt, which is what makes a non-contingent offer possible for many families. You still price, stage and market the home to draw the strongest open-market offer; the backup is a floor you hope never to use, and its price may be below what an open-market buyer would pay. The backup offer is a purchase contract issued by a program partner of Cornerstone First Mortgage, LLC under a separate agreement. It depends on property eligibility and program terms, is not available for every home, and its price is set from a valuation and may be below market value. Program terms, the backup price and any fees are provided in writing before you decide.
Do I lose my Michigan homestead exemption while I own two homes?
Not necessarily. With Michigan Treasury Form 4640 (conditional rescission) you can keep the principal residence exemption on the old home for up to three years while it is for sale, not occupied, not leased and not used for business, once your new Michigan home is your principal residence. Renting it out ends that.
Source: Michigan Treasury, Conditional Rescission of the Principal Residence Exemption (checked 2026-10-17)
What credit score do I need?
Credit minimums are set by each lender and program, and they change, so this site doesn’t quote one. David will tell you which programs fit your credit after a review. Answering the quiz doesn’t check your credit.
Can I use MSHDA down payment help to buy my next home?
Only in some areas. MSHDA’s MI Home Loan is for first-time buyers (no home owned in the past three years) statewide, and for repeat buyers only in MSHDA targeted areas. If you own a home now, have a participating lender check the address and your situation.
Sources: MSHDA, MI Home Loan (checked 2026-10-17); MSHDA Targeted Areas flyer (2024-05-01)
Is this available everywhere in Michigan?
David is licensed in Michigan, works from Brighton in Livingston County, and helps homeowners from Metro Detroit and Ann Arbor to Grand Rapids, Lansing and northern Michigan. Whether a bridge loan is available for you depends on the property, your finances and the lender’s program.
Bridge Loan Resources
Practical guides on bridge loans and buying before you sell — written for Michigan homeowners.
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Meet David Keblaitis
Branch Manager, Cornerstone First Mortgage, LLC · NMLS #167980
David has worked in mortgage lending since 2000 and leads his own Cornerstone branch team. He'll look at your equity, income and timing, tell you whether a bridge loan makes sense, and lay out the alternatives if it doesn't. More about David
Ready to buy before you sell?
Spend a minute on the quiz and David will follow up personally about whether a bridge loan suits your move. The quiz asks about your home and timeline, not your credit report.
See If You Qualify