Michigan Bridge Loan Program

Last Updated: April 30, 2025

At OfferMarket, we’re here to help you grow your wealth through smart real estate investments. To support your journey in Michigan’s real estate market, we provide a fully integrated platform that includes:

💰 Private lending solutions
☂️ Insurance rate comparison services
🏚️ Access to off-market properties

Our Michigan Bridge Loan program is tailored to deliver fast, reliable, and affordable financing for investors acquiring and improving 1-4 unit residential properties.

Whether your game plan is to renovate and flip for profit or to hold and refinance into a DSCR loan, we’re excited at the chance to work with you and play a role in your success.

Now, let’s take a closer look at the OfferMarket Bridge Loan Program available right here in Michigan.

What is a Bridge Loan?

A bridge loan provides short-term financing designed to carry you through until you lock in a longer-term solution. In Michigan’s real estate landscape, these loans are a key tool for investors who need fast access to capital.

Common Uses for a Michigan Bridge Loan

Real estate investors in Michigan often rely on bridge loans for situations such as:

• Purchasing and rehabbing a distressed or outdated property — ideal when you want to secure a property and fund renovations without tying up large amounts of your own capital.

• Refinancing a property you picked up with cash in order to complete renovations — perfect if you scored an off-market deal where the seller required an immediate cash close, and now you need liquidity to finish the project.

• Paying off an existing loan on a distressed property while completing the necessary improvements — this helps when your current private lender needs repayment but the rehab isn't done yet.

• Acquiring a property without plans to rehab — particularly when buying undervalued properties off-market with the intention to sell them as-is for a profit.

• Refinancing a cash purchase with no rehab plans — allowing you to tap into your equity for your next Michigan investment opportunity.

• Refinancing an existing loan where rehab work is already complete — maybe your improvements are done, but you need more time to either sell or transition into a rental loan.

In the world of real estate investing, the terms "bridge loan," "hard money loan," and "fix and flip loan" are often used interchangeably. Regardless of what you call it, these financing tools are designed to give Michigan investors the flexibility they need.

How a Michigan Bridge Loan Works

Every bridge loan has two main parts:

Initial Advance — This is the portion of the total loan used toward the property purchase price. The funds are sent directly to the title company at closing.

Construction Holdback — This is the amount set aside for renovation costs, which gets disbursed to you through draw reimbursements as your rehab progresses.

Our bridge loans are designed to be as flexible as possible. If your project doesn’t require funds for rehab, you can choose to only receive the initial advance. On the flip side, if you already purchased the property with cash and simply need financing for the renovation, you can utilize the construction holdback alone.

In reality, most Michigan investors choose to use both the initial advance and construction holdback to maximize leverage and keep their own cash working elsewhere. However, there are plenty of investors who prefer to self-fund their rehab or have no intention of making improvements at all.

Some investors also pay cash upfront for the property purchase and use the loan purely for the construction holdback—sometimes up to 100% of the rehab budget. In Michigan’s dynamic real estate market, your options are wide open when it comes to bridge loan strategies.

Choosing Your Exit Strategy

When you utilize a Michigan bridge loan, your exit plan will typically involve either flipping the property for profit or holding it as a rental and refinancing into a longer-term solution like a DSCR loan. It’s important to know that many successful investors shift their strategy along the way, adjusting based on market trends and financial projections. There’s no need to feel locked into one path right out of the gate.

Take this example: you may originally plan to follow the BRRRR method (Buy, Rehab, Rent, Refinance, Repeat), but once the project wraps up, you could find that the local rental market isn't as strong as expected. If the resale market looks promising, it might make more sense to sell and reinvest in a more lucrative rental opportunity.

Or perhaps you plan to flip the property from the start, but then the Michigan housing market cools. In that case, holding onto the property as a rental and refinancing into a DSCR loan—with a low prepayment penalty—might offer the flexibility to wait for better selling conditions.

The takeaway? Focus on investment opportunities that give you multiple exit options. This dual-strategy approach is a smart way to hedge your bets and protect your investment.

Who Typically Uses Michigan Bridge Loans?

Bridge loans in Michigan are an ideal fit for two main types of real estate investors:

Fix and Flip Specialists (“Flippers”)
These investors are focused on buying, rehabbing, and selling properties for a profit.

Rental Property Investors (BRRRR Method)
These investors buy, rehab, rent out the property, and then refinance to pull cash out and repeat the process.

Explore our Fix and Rent bundle, which pairs a Michigan bridge loan for the initial purchase and rehab with a discounted DSCR loan for the refinance stage.

As we’ve observed across our investor network, many Michigan real estate entrepreneurs successfully blend these strategies. They might flip some properties while choosing to rent others—depending on how each project evolves. This flexible approach is not only common, but it’s also considered a best practice among seasoned investors.

Bridge Loan Program Guidelines for Michigan

Project Eligibility

At OfferMarket, our priority is to help Michigan investors build wealth while managing risk effectively. One of the cornerstones of our lending success is keeping default rates extremely low—less than 0.5% of the loans we've originated have required foreclosure. This speaks to our commitment to both your success and responsible lending practices.

It’s important to understand that newer investors taking on complex, heavy rehab projects may be exposed to higher risk, especially during times of economic uncertainty. These extensive renovations can often lead to unexpected delays, cost overruns, and market changes that even experienced investors may struggle to overcome.

As your lending partner, we go beyond simply providing capital—we act as your advisor and risk management partner. Clear expectations and informed decision-making are the keys to helping you safely and successfully grow your Michigan real estate portfolio.

Understanding the Initial Advance

The initial advance for your Michigan bridge loan is determined based on both your specific experience and the details of the deal. Here’s what we evaluate:

• How many investment properties you’ve owned over the past 24 months.

• Your history of completed, similar rehab projects within the last 5 years.

• Minimum credit score of 680, though we prefer a 720+ score from the guarantor.

• Additional leverage is available to licensed Realtors, General Contractors, and Professional Engineers.

If the property’s purchase price is higher than the As Is value determined by our appraisal or in-house valuation, we base your initial advance on the lower As Is value rather than the contract price.

Your exit strategy also plays a role here. If your plan is to flip, we expect a minimum projected gross margin of 30% with at least $15,000 in projected profit. If you’re planning to refinance and rent, the DSCR after repairs should be at least 1.1. Use our Fix and Flip Calculator and DSCR Calculator to fine-tune your numbers and evaluate both options.

For properties located in rural areas, initial advance options are more limited, and we require a minimum experience level of 3.

Choosing Your Exit Strategy

When you utilize a Michigan bridge loan, your exit plan will typically involve either flipping the property for profit or holding it as a rental and refinancing into a longer-term solution like a DSCR loan. It’s important to know that many successful investors shift their strategy along the way, adjusting based on market trends and financial projections. There’s no need to feel locked into one path right out of the gate.

Take this example: you may originally plan to follow the BRRRR method (Buy, Rehab, Rent, Refinance, Repeat), but once the project wraps up, you could find that the local rental market isn't as strong as expected. If the resale market looks promising, it might make more sense to sell and reinvest in a more lucrative rental opportunity.

Or perhaps you plan to flip the property from the start, but then the Michigan housing market cools. In that case, holding onto the property as a rental and refinancing into a DSCR loan—with a low prepayment penalty—might offer the flexibility to wait for better selling conditions.

The takeaway? Focus on investment opportunities that give you multiple exit options. This dual-strategy approach is a smart way to hedge your bets and protect your investment.

Experience-Based Tiers

Initial Advance by Tier

*Note: For Tier 1 borrowers with exceptional credit and liquidity, we may approve up to 85% initial advance on an exception basis.

Adjustments to Initial Advance

Below are the scenarios that may affect the percentage of your initial advance for Michigan bridge loans:

These adjustments are in place to align your project’s risk profile with responsible lending practices, helping ensure your success while keeping financial risks under control.

Rehab Scope Classification

Understanding the level of work involved in your Michigan project is essential for determining eligibility and funding terms. Here's how we categorize the scope of renovations:

In Michigan, especially in areas with older housing stock, it’s important to classify your project correctly to receive the proper financing terms and risk assessment.

Rehab Scope Eligibility

Your eligibility to take on various rehab scopes with our Michigan bridge loan program depends on your experience tier. This approach promotes responsible investing and minimizes the likelihood of costly setbacks.

To help safeguard your investment, we encourage Michigan investors to focus on lighter rehab projects, often referred to as “cosmetic rehabs,” which can be completed more quickly and with fewer complications.

LTARV Limits

Maximum Loan-to-After-Repair-Value (LTARV) percentages are based on your experience level and the rehab scope classification. This ensures that leverage is aligned with your project complexity and your investing background.

By keeping leverage in check, we help Michigan investors avoid overexposure, especially on projects with larger rehab budgets.

LTFC Limits

Loan-to-Full-Cost (LTFC) applies to projects with extensive rehab scopes—typically where the rehab budget is larger than the purchase price or As Is value. This guideline ensures that you, the borrower, maintain adequate financial involvement in higher-risk projects.

With this structure in place, we promote responsible capital allocation for Michigan investors working on high-stakes projects.

Example: No Experience

Example: No Experience, Excellent Credit

Example: 5 Previous Projects

Refinance Using As Is Value Instead of Cost Basis for Initial Advance

In Michigan, our standard underwriting relies on your project’s cost basis—the total of your purchase price plus any upfront expenses incurred. This approach helps ensure that you retain equity in your deal, keeping financial alignment between borrower and lender.

However, there are cases where we may lend against the As Is value instead of the cost basis, particularly when the property has been seasoned and is now worth more than the original purchase plus rehab costs. For these scenarios, we require:

• The property must be habitable, with at least a C4 condition rating.

• At least 3 years of property ownership seasoning.

• No bridge or construction lenders involved in payoff, and no outstanding default interest, extension fees, or penalties.

• Credit score of 680 or higher.

• Minimum experience level of Tier 3 (at least 4 completed similar rehab projects).

• Strong neighborhood sales comps that support the As Is value.

• Clear rationale for the current situation, such as a previously rented property where tenants have recently vacated.

This option helps Michigan investors maximize leverage on well-performing properties while maintaining underwriting integrity.

Transactions Involving Wholesalers and Price Run-Ups

If your Michigan project involves a wholesaler or assignment fee, we allow inclusion of the assignment fee or price markup in your financing basis—within reasonable limits.

For example:

Key guidelines for wholesaler transactions:

• Maximum of 20% price markup between the original seller and wholesaler.

• Full contract chain (A-B and B-C) and wholesaler operating agreements are required.

• The transaction must be at arm’s length.

• Assignment fees beyond the 20% cap are not eligible for financing.

• If the property was listed on the MLS, the assignment fee may be excluded.

Construction Holdback

The construction holdback portion of your Michigan bridge loan provides funding for renovations through draw reimbursements. You submit draw requests as you complete work according to your scope of work, and funds are wired to you for verified progress.

If you prefer to self-fund your rehab and don’t require construction financing, you can opt out of the holdback feature entirely.

For Michigan projects where the total loan amount is $100,000 or higher, interest is charged only on disbursed construction funds—maximizing your cost efficiency.

Appraisal and In-House Valuation

For every Michigan bridge loan, a valuation is required to determine loan terms and risk assessment. Depending on your scenario, this could be a third-party interior appraisal, exterior appraisal, or an in-house valuation if certain eligibility criteria are met.

In-House Valuation

Even if your project qualifies for in-house valuation, OfferMarket reserves the right to require a third-party appraisal for certain transactions.

Exterior Appraisal

In Michigan, exterior-only appraisals may be used in certain situations where a full interior inspection is not required. These are typically reserved for distressed property sales and similar cases.

Exterior appraisals are acceptable under these conditions:

• Real Estate Owned (REO) sale

• Foreclosure auction

• Sheriff’s sale

• Online auction platforms

• Bankruptcy-related sales

The appraisal must be current—dated within 120 days of the loan settlement. If the appraisal is between 120 and 179 days old, a recertification will be required to confirm validity.

Interior Appraisal

For Michigan bridge loans that do not meet the criteria for exterior or in-house valuation, a full interior appraisal will be necessary. This process ensures accurate assessment of both the current and after-repair values of your investment property.

Unless an appraisal transfer is applicable, OfferMarket will coordinate the appraisal through an appraisal management company (AMC). You will be responsible for paying the AMC directly. Loan processing will remain on hold until this invoice is paid.

Appraisal Transfer

If your Michigan property was recently appraised through another lender, you may be able to transfer the appraisal to OfferMarket. To be eligible, the following conditions must be met:

• The appraisal was ordered through an approved appraisal management company.

• The appraisal report is less than 180 days old at the time of closing.

• If the report is between 120 and 179 days old, a recertification is required.

• The transferring lender must provide a signed transfer letter with this certification: "Lender certifies that the Appraisal was ordered and processed in compliance with the Appraiser Independence Requirements (AIR)."

• Required documents include the appraisal report (PDF), XML file, and proof of paid appraisal invoice.

These steps ensure a smooth transition if you're switching lenders but want to leverage an existing valuation.

Scenario: Stabilized Bridge Loan

If your Michigan property is fully stabilized—with no significant deferred maintenance—and qualifies with an appraisal condition rating of C4 or better, you may be eligible for a stabilized bridge loan. This option allows funding based on the As Is value without factoring in rehab projections.

This product is designed for investors who acquire Michigan properties that are rental-ready or already in good condition.

Key Loan Details

Extensions

Bridge loans are meant to be short-term solutions, typically ranging from 12 to 24 months. In Michigan, as with other markets, extending your loan should be considered a backup option rather than part of your original plan.

Extensions come with added costs, more accrued interest, and an increased risk of foreclosure if the loan remains unpaid after the extension limit. To avoid the need for an extension, focus on these best practices:

• Work with highly experienced general contractors with solid references.

• Avoid overly ambitious rehab scopes that stretch your financial and project management resources.

• Choose Michigan markets where zoning and permitting processes move efficiently.

• Steer clear of situations where you can’t immediately access the property (e.g., inherited tenants with existing leases or holdover occupants).

• Always prioritize deals that offer a dual exit strategy—either resale or refinance—to protect against unexpected market shifts.

By following these guidelines, you greatly reduce the chance of project delays or extension needs.

Extension Limits

If your Michigan bridge loan reaches its initial term without payoff, you may request an extension. Extensions are granted for up to 50% of your original loan term and are available in three- or six-month increments.

These limits ensure that extensions remain a temporary solution—not a long-term dependency.

Extension Terms and Fees

If your Michigan bridge loan requires an extension, the following fee schedule will apply. These fees are added directly to your payoff statement at the time of loan settlement:

Carefully plan your project timeline to avoid unnecessary extensions and the additional costs they bring.

Extension Prerequisites

In order to secure an extension for your Michigan bridge loan, you must confirm that your builder’s risk insurance policy remains active for the full duration of the extended loan period. This ensures that both your investment and the lender remain properly protected while your project is completed.

Ineligible Property Types

The following property types are not eligible for funding under this Michigan bridge loan program:

• Mixed-use properties

• Multifamily properties with 5 or more units

• Condotels (condominium hotels)

• Co-op housing units

• Mobile or manufactured homes

• Commercial real estate (retail, office, industrial)

• Cabins or log-style homes

• Properties with active oil or gas leases

• Operating farms, ranches, or orchards

• Vacation rentals and seasonal-use properties

• Unpaved or dirt road access properties

• Unique, exotic, or ultra-luxury real estate

By excluding these high-risk asset types, the program focuses on stable, income-producing residential investments across Michigan.

Exception Scenarios

While we maintain clear eligibility guidelines, there are certain situations where exceptions may be considered for Michigan investors. These exceptions are subject to loan committee approval and additional risk assessment:

Each exception is reviewed individually to maintain responsible lending while providing flexibility when the scenario supports it.

Borrower and Guarantor Requirements

To qualify for a Michigan bridge loan with OfferMarket, the following borrower and guarantor requirements apply:

This structure ensures that Michigan borrowers are financially positioned to complete their projects while also aligning interests between lender and borrower.

Credit and Background Items

The following credit and background considerations apply when evaluating Michigan bridge loan applications:

• When three credit scores are available, the middle score (2nd highest) is used.

• When two scores are available, the lower score is used.

• If no mortgage tradelines exist, six months of interest reserves are required.

• If fewer than five tradelines appear on the credit report, six months of interest reserves are also required.

• Bankruptcies must be discharged for at least four years before the loan settlement date.

• Foreclosures must be completed for at least four years before settlement.

• If bankruptcy or foreclosure occurred between four and seven years ago, a minimum of three months of interest reserves will be required.

• Late mortgage payments within the past 12 months require a letter of explanation and may impact eligibility.

• Any past due balances on mortgages or other tradelines must be paid in full before funding.

• Involuntary liens, judgments, or child support obligations must be cleared before funding.

• Pending civil lawsuits require explanation and are subject to loan committee discretion.

• Pending criminal charges result in ineligibility.

• Background history involving financial crime, serious crime, or repeated criminal offenses disqualifies the applicant.

• Lesser criminal offenses may require a letter of explanation and are reviewed on a case-by-case basis.

Interest Reserves

For Michigan bridge loans, interest reserves may be collected at closing and held in escrow. These funds are applied toward your accrued interest before you begin making direct monthly interest payments from your own accounts.

Interest reserves are designed to safeguard your project’s cash flow and provide additional security to both the borrower and lender.

Financed Interest Payments

Michigan investors may qualify for financed interest payments, allowing interest to be added directly to your payoff statement instead of making monthly payments. This feature helps preserve liquidity, especially during active rehab phases, and prevents the need to rely on credit cards for covering interest expenses.

For example:

This approach is particularly helpful for Michigan investors managing complex rehab projects who prefer to direct their available funds toward construction and operational expenses rather than interim interest payments.

Property Sourcing Guidelines

When sourcing properties for your Michigan bridge loan project, certain guidelines ensure eligibility and compliance:

• If the project is located in a new market for you as the investor, a General Contractor (GC) agreement or a Letter of Explanation is required, outlining why a GC is not necessary.

• Properties with significant sale price increases, wholesaler transactions, or non-arms-length arrangements must provide additional documentation for underwriting review.

• For condo conversions or projects involving extensive renovations, letters from architects or engineers—or valid permits—are required.

• Submissions must include all applicable purchase contracts, settlement statements, payoff letters (if refinancing), borrower track record, and entity formation documents.

Adhering to these sourcing standards helps ensure a smooth underwriting process and aligns your Michigan deal with responsible lending criteria.

Bridge Loan Insurance Guidelines

To protect your Michigan property and your investment during the rehab process, builders risk insurance (also known as fix and flip insurance) is required. This specialized insurance covers properties that are under construction, in poor condition, or vacant.

Ensuring proper insurance coverage is a critical part of your risk management strategy when working on Michigan investment properties.

Coverage Details

To meet eligibility for Michigan bridge loan insurance, the policy must meet these key specifications:

These insurance standards ensure that your Michigan project remains protected from property damage risks and liability exposures throughout the loan term.

Pro Tip: Stay Compliant With Insurance Requirements

To maintain compliance with your Michigan bridge loan insurance policy and avoid claim denials:

• Install smoke detectors immediately after closing.

• Ensure proper door locks and consider adding security cameras.

Frequently Asked Questions

What states does OfferMarket fund bridge loans?

Alabama, Arizona*, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Michigan, Mississippi, Missouri, Montana, Nebraska, Nevada*, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota*, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota*, Tennessee, Texas, Utah, Vermont*, Virginia, Washington, Washington D.C., West Virginia, Wisconsin, Wyoming.

(*) In states marked with an asterisk, OfferMarket operates as a rate shopping service.

Can I have more than one bridge loan at the same time?

Yes, OfferMarket allows Michigan investors to hold multiple bridge loans at once. It’s quite common for investors to manage several projects simultaneously. However, our primary focus is your success and risk management. If we determine that your liquidity or current project pace could be strained by additional loans, we’ll work with you to ensure your strategy remains safe and sustainable.

Are bridge loans considered commercial loans?

Yes, bridge loans are classified as commercial loans because they are intended strictly for business purposes. These loans are issued to your business entity—whether an LLC or a corporation—not to you personally. This classification aligns with regulations for non-owner occupied investment properties and helps separate your personal finances from your investment activities.

What is the minimum loan amount for a Michigan bridge loan?

The minimum loan amount for our Michigan bridge loan program is $25,000. This makes the program accessible for a wide range of investment opportunities, from smaller rehab projects to larger-scale renovations.

Which property types qualify for Michigan bridge loans?

OfferMarket’s Michigan bridge loan program finances non-owner occupied 1–4 unit residential properties, including:

• Single-family residences

• 2–4 unit multifamily properties

• Townhomes

• Condominiums

• Planned Unit Developments (PUDs)

Please note:
Mixed-use properties, larger multifamily (5+ units), condotels, co-ops, mobile homes, and commercial real estate are not eligible under this program. However, separate financing programs may be available for those asset types.

How is Loan-to-Value (LTV) calculated?

In the Michigan bridge loan program, Loan-to-Value (LTV) typically refers to Loan-to-After-Repair-Value (LTARV), which calculates your total loan amount—including both the initial advance and the construction holdback—divided by the projected after-repair value (ARV) determined by our appraisal or valuation process.

In refinance scenarios, we use the lower of the As Is value or the original purchase price plus any verified sunk costs.

What are the credit requirements for Michigan bridge loans?

The minimum credit score for OfferMarket’s Michigan bridge loan program is 680. Borrowers with scores between 660 and 679 may still be eligible on an exception basis, though terms may be adjusted accordingly.

We consider the credit scores of all individuals who will personally guarantee the loan within the borrowing entity. Members of the entity who are not guarantors are not factored into this evaluation.

What are the experience requirements for Michigan investors?

No prior real estate experience is required to qualify for a Michigan bridge loan. However, experience can directly impact your loan terms, including leverage and advance rates. We use an experience tier system, which considers the number of similar rehab projects successfully completed within the last five years.

The more experience you have, the more favorable your terms can be. To assist with this process, be sure to complete the Track Record section of your loan file. Our team will verify past projects using settlement statements and other supporting documentation as needed.

Does wholesaling count toward my experience tier?

No, acting as a wholesaler on a transaction does not count toward your experience tier. To qualify for experience credit, you must have been financially responsible for completing the rehab project—ownership and project execution are required, not just contract assignment.

What documentation is required to apply for a Michigan bridge loan?

Purchase Transaction Documentation

Refinance Transaction Documentation

Are there special requirements for loans over $1 million?

Yes, Michigan bridge loans exceeding $1 million are subject to enhanced guidelines to ensure proper risk assessment and deal viability.

Glossary of Key Terms

Instant Bridge Loan Quote

OfferMarket Capital LLC, the private lending division of OfferMarket, proudly serves Michigan real estate investors with specialized financing solutions including bridge loans and DSCR loans. Our mission is to help you build wealth through real estate while supporting your projects with reliable funding, transparent terms, and responsive service.

Why Michigan investors choose OfferMarket:

• Access to private lending tailored for Michigan real estate deals

• Builders risk insurance rate shopping to ensure proper coverage

• Off-market property opportunities to grow your portfolio

• Valuable market insights to inform your investment strategy

Thousands of real estate investors trust OfferMarket each month. Becoming a member is completely free and gives you full access to the resources and tools designed to help your business thrive.

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Thousands of real estate investors get value from OfferMarket every month. Membership is entirely free and includes the following benefits:

💰 Private lending
☂️ Insurance rate shopping
🏚️ Off market properties
💡 Market insights

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