Home Sweet Home's Interest-Free Bridge Loan Provides the Key that Opened the Door for New Homeowners
Press Release provided by Home Sweet Home Non-Profit Housing Corporation
May 20, 2025
Home Sweet Home Nonprofit Housing Corporation has made it possible for a local family to become first-time homeowners.
On Friday May 16th Home Sweet Home Nonprofit Housing Corporation extended an interest-free Bridge Loan of just under $5,000 to George and Tina Reeves that allowed them to purchase a simple, decent home in Grawn. The Reeves had been approved for a first-time home mortgage.
George and Tina worked with Home Sweet Home Board Secretary Jason Potes for over a year to repair their credit and had been approved for a USDA Rural Development Guaranteed First Time Home Buyer mortgage, however they still fell slightly short of funding needed to close. That's where the Home Sweet Home Bridge Loan proved essential. Home Sweet Home lent the Reeves $4,764 for closing costs.
Tina Reeves said of the Bridge Loan, "I can't thank Home Sweet Home enough for the help we received from them. God bless them!"
"These closings can be frustratingly complicated. Sometimes you have to wait longer than seems reasonable until all the planets align," said John O'Neill, Home Sweet Home Board President. The Reeves certainly realize this. They were originally scheduled to close in January. This was reset to late February. "When this date was again rescheduled to mid-March George and Tina's daughter and son-in-law arrived and helped pack all of their belongings in anticipation of the move. Since then they have been living out of cardboard boxes for two months until they were finally able to close with Home Sweet Home's Bridge Loan on Friday May 16th," O'Neill noted.
Unfortunately, the Reeves are not unusual. Both have worked for years. Coordinating with Jason they improved their credit and were approved for a mortgage. But they still came up short. "We encounter many responsible people who are mortgage approved but are priced out of today's market. Without our help, they would remain unable to purchase a simple, decent home," Potes said.
Over the weekend George and Tina moved in and now live closer to their jobs in a house that is energy efficient. "We love our new home," Tina Reeves said. "We feel cozy and safe. Also our dogs have a nice yard to play in.
"Purchasing a home will make a big difference in this family's life. They'll be moving out of an aging rented trailer and into a modest new home that far better meets their needs. "Many renters who become homeowners find that they spend less to purchase a home than they did to rent. And of course, renters build no equity; at the end of the month a renter starts over from zero, a homeowner builds a little more equity every month," Potes said.
Owning a home confers many benefits. Research has shown that compared to renters, homeowners tend to increase their income over time. Their children do better in school, graduate, and move to skilled training or higher education. And the entire family tends to have better health outcomes.
The difference comes through Home Sweet Home's Bridge Loan strategy. The loan to the Reeves bears neither interest nor service charges. All payments are deferred as long as the house remains their primary residence and until they pay off their primary mortgage. "In thirty years time they will repay the loan amount," O'Neill said. "We ran the numbers on an interest rate of 7% and found that they would have owed us about $40,000. After all their hard work this would be a burden they didn't deserve. And when they repay the loan amount it will be applied to future Bridge Loans, helping future buyers to become homeowners."
"We've chosen this approach to the decades-old housing crisis for three reasons. First, so many people are approved for mortgages but are priced out of the market. Second, it's the most economical way to increase the number of homeowners. Compared to building or renovating this is just so much more economical. Finally, no other organization is taking this approach, so we're filling a gap addressed by no one else," Potes said.
"In this housing market too many people approved for mortgages can find nothing in their price range," said Potes. "They live in temporary seasonal rentals but around May 1 these become Short Term Rentals. Rents skyrocket. These local residents have good credit and decent earnings but will scramble for lodging. Two years ago we knew of ten credit-worthy families who were living in tents. Sadly, this will happen again this year. The need grows more dire every year. Parents will continue to work to meet their children's needs, but instead of becoming homeowners, they experience housing insecurity and some will become homeless."
This is the second Bridge that Home Sweet Home has issued. In April HSH made another Bridge of $7,600 that helped another couple to become first-time homeowners. Again, these were people of modest means who qualified for a mortgage but fell a little short of the funds needed. Home Sweet Home's Bridge prevented them from remaining renters. Buyers are free to choose an existing home that meets HSH's high standards for energy efficiency, location, and suitability for the family.
"We've been blessed with generous donations that have helped to make this possible. Two large donations from an anonymous donor have been pivotal. In addition, the Campbell Fund of the Grand Traverse Regional Community Foundation made two seed grants that helped Home Sweet Home to jump through all the hoops required of a new tax exempt nonprofit.
"We've worked hard to get Home Sweet Home up and running, building a strong board, setting robust policies, and soliciting donations," O'Neill said. Home Sweet Home is a federally recognized 501 (c.) 3 tax exempt nonprofit corporation.
"Many people without our help will fall just short of being able to purchase. These are people with families, jobs, and credit scores that qualify them for mortgages. But given the sky high price of homes, modest houses that once served working people essential to our economy and the health of neighborhoods are being turned into investment properties. Responsible people are simply priced out of the market. This is a profound injustice. Unless we stabilize these homes, retain them for solid people of low and modest incomes, we will never overcome the housing crisis that has ravaged local families," O'Neill said.
Another family has qualified for a mortgage and is awaiting an alignment of the planets that will allow them to close on a simple, decent home that meets their needs. "We help with starter homes, not dream homes. But of course, when you're priced out of the market, such a starter home is your dream. Home Sweet Home makes dreams come true." O'Neill reported that a donor has committed to the funds needed for this next HSH Bridge loan.
Home Sweet Home operates in Grand Traverse, Benzie, and Leelanau Counties. They welcome donations. "While we are not currently accepting applications, when we do, any prospective buyer who lives or works in our three counties will be considered. A successful applicant will have reliable income, repairable credit, and be priced out of the market. We will be looking for buyers of low or modest income who need between $5,000 and $15,000 to close on a house," Potes said.
"And of course, we are always looking for donors who want to participate in our life-changing work," O'Neill added. "It's a wise investment in our community's well-being and a great way to spread joy."
Home Sweet Home Nonprofit Housing Corporation is a Christian organization that works through action; it neither proselytizes nor expects conversions.
Caption for attached photo: At closing the Reeves receive their Home Sweet Home Bridge Loan check. From left to right, Tina Reeves, John O'Neill Board President, George Reeves.
For info or to help, contact John O'Neill at 231 228-6603 or johnoneillbackup@gmail.com, Home Sweet Home, P.O. Box 33, Cedar, MI. 49621