How to refinance a construction project in Michigan in 2026?

How to Refinance a Construction Project in Michigan in 2026

Yes – you can refinance a Michigan construction project with a 620‑680 FICO, 12‑24 month bridge terms, and 8‑12% APR—no score hit.

See the rate you qualify for in seconds.

The specifics

A Michigan bridge loan typically starts at 12 months and can extend to 24 months, with APRs ranging from 8‑12%【Cornovus Capital】. Lenders usually put a 15‑20% down payment, which is used to secure the loan and may reduce the rate by 1‑3%【Liberty Capital Group】. The monthly debt‑service payment must not exceed 8‑12% of your gross monthly revenue, and lenders will calculate a DSCR of at least 1.25× to ensure you can meet obligations【AAPL Online】.

You’ll need a cash‑flow statement that shows project revenue schedules, a contractor invoice history, and, if possible, an owner or developer guarantee. Documentation can be uploaded to the lender’s portal or delivered in‑person. Once approved, most Michigan lenders commit a final draw in 30‑45 days, which is documented in the loan agreement.

If your equipment is used, expect a 1‑2% APR premium【Liberty Capital Group】, while fair‑credit borrowers (FICO 620‑679) might see a 3‑5% rate lift【Cornovus Capital】. Lower scores or a history of missed payments may push you into a construction‑loan product with longer draw periods.

To estimate the cost quickly, try our affordability calculator or visit a local dealer in Aurora, IL for state‑specific guidance.

For equipment‑specific questions, see the page on Can I refinance an excavator in Michigan?. Many Michigan owners also turn to a single bridge loan to replace stacked merchant cash advances, as detailed in the discussion on Michigan Merchant Cash Advance Refinancing.

Qualification & edge cases

Your score, revenue, and collateral shape the offer. Scores below 620 or a history of late payments may lead lenders to require a co‑sponsor or to shift you to a longer‑term construction loan rather than a short bridge. Projects without a clear payment schedule—such as those waiting on a large institutional seller—can face higher APRs or a denial.

If you’re a newer contractor with less than 12 months in business, some lenders will not consider a bridge loan unless you have at least one year of stable revenue or a strong owner guarantee. In that scenario, a short‑term construction loan with open draw periods (usually 12‑36 months) can provide flexible capital until invoicing ramps up.

Should your equipment be heavily depreciated or you possess limited collateral, you may be eligible for a lesser bridge amount that still covers payroll and material costs—often down to 30‑40% of the project budget.

Background & how it works

Bridge financing exists to close the cash‑flow gap between project milestones and client invoicing. Contractors typically pay payroll and materials upfront while awaiting payment from the client, which can take 30‑90 days. By replacing equipment or construction debt with a low‑interest bridge loan, you avoid expensive lines of credit and keep the project moving.

Lenders evaluate the project’s budget, the owner’s bonding capacity, and the anticipated payment schedule to calculate a DSCR of at least 1.25×. This metric ensures that the project generates enough earnings to cover the loan payment comfortably. The loan is secured by the equipment or project asset, providing a safety net for both parties.

In Michigan, bridge lenders often collaborate with local bonding agencies or on‑site project oversight, which guarantees compliance with state and federal contract requirements. The result is a streamlined approval process that, on average, takes 30‑45 days once you’ve gathered the upfront docs.

Bottom line

A Michigan contractor with a 620‑680 FICO can lock in a 12‑24 month bridge loan at 8‑12% APR—no score hit. Use the affordability calculator to see your rate in seconds and close in a few weeks.

Disclosures

This content is for educational purposes only and is not financial advice. constructionworkingcapital.com may receive compensation from partner lenders, which may influence which products are featured. Rates, terms, and availability vary by lender and applicant qualifications.

Sources

• Cornovus Capital
• Liberty Capital Group
• AAPL Online