Home Loan Options Traverse City
Traverse City Grand Traverse County • Northern Michigan

Traverse City
Mortgage Lender.

We are based here. We close loans here every week. The Traverse City market has its own personality -- lakefront jumbo, physician loans for Munson staff, construction on land parcels outside the city, and second home buyers from downstate who fell in love with the place. Every one of those situations requires a lender who actually understands the market. That is us.

Traverse City Mortgage Quick Answer

Kirby and Angie are local mortgage lenders serving Traverse City and Grand Traverse County from their office at 1396 Douglas Drive. The Traverse City market centers on conventional loans for primary buyers, jumbo financing for lakefront and high-value properties, physician loans for Munson Medical Center staff, and construction loans for land buyers in the surrounding area. USDA zero-down loans are not available within city limits but apply to many communities within 20 miles. Strong pre-approval is essential in this market.

$405K
Median Sale Price 2025
$749M
2025 Total Sales Volume
25%
Homes Sold Above Asking
68 Days
Avg Days on Market
15,982
City Population
Local Market Knowledge

What makes Traverse City different to finance.

Traverse City is not a generic Michigan real estate market and it does not respond to generic mortgage advice. We are based here -- our office is on Douglas Drive -- and the loans we close in this market reflect what the market actually looks like: high-value properties, competitive multi-offer situations, a strong second home and vacation buyer segment, and a physician and professional population tied to Munson Medical Center and the broader healthcare and wine industry economy.

The median sale price for Grand Traverse County was $405,223 in 2025 per verified MLS data, with total residential sales volume reaching $749 million -- up 7.46% from 2024 despite modest price softening. Downtown and lakefront properties trade significantly above county median. Properties on West Grand Traverse Bay, East Bay, and the surrounding lakes regularly require jumbo financing.

Twenty-five percent of homes within Traverse City proper sold above asking price in 2025. Buyers who show up without a strong pre-approval letter are not competitive here. We get pre-approvals done fast and done right so you can make offers with confidence.

The Munson Medical Center Physician Loan Angle

Munson Medical Center is the region's largest employer and one of the largest hospitals in northern Lower Michigan. Physicians, surgeons, dentists, and veterinarians relocating to Traverse City for positions at Munson or affiliated practices frequently face the same challenge: high earning potential, significant student loan debt, and limited employment history due to residency or fellowship. The standard conventional underwriting process often does not serve these buyers well.

Physician mortgage loans solve exactly this problem. Student loan debt is excluded from the debt-to-income calculation entirely. Up to 100% financing is available on loans up to $1 million with no PMI. Residents and fellows can close up to 90 days before their employment start date with a signed offer letter. If you are a physician or dentist moving to Traverse City for a Munson-affiliated position, this is the program worth knowing about. See our doctor loan page for full program details.

USDA in the Traverse City Area -- Know the Map

Traverse City proper does not qualify for USDA Rural Development zero-down financing. The city's population density places it above USDA eligibility thresholds. However, many communities within 15 to 30 minutes of downtown Traverse City do qualify -- including portions of Leelanau County, Benzie County, and outer Grand Traverse County townships. If your search area includes communities like Suttons Bay, Benzonia, Honor, or lake-adjacent rural areas, USDA eligibility is worth checking before assuming you need a down payment. We verify every address individually.

Traverse City Market Snapshot

CountyGrand Traverse
2025 Median Price$405,223
Avg Days on Market68 days
Sold Over Ask25% in city
USDA EligibleSurrounding areas
Key EmployerMunson Medical
Our Office1396 Douglas Dr

Ready to Buy in Traverse City?

We are local. We know this market. Get your pre-approval started today and be ready to move when the right property comes up.

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Loan Programs

The programs that matter most in Traverse City.

Not every loan program is equally relevant in every market. Here is what we use most often for Traverse City and Grand Traverse County buyers.

Most Common

Conventional Loans

The primary financing tool for Traverse City buyers. Down payments as low as 3% for qualified buyers, PMI that cancels at 20% equity, and the flexibility to finance primary residences, second homes, and investment properties. Strong credit scores access the best pricing.

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Lakefront + Luxury

Jumbo Loans

Waterfront properties on West Bay, East Bay, Torch Lake, and surrounding lakes frequently exceed conforming loan limits. Jumbo financing covers high-value purchases where standard programs fall short. Kirby handles the majority of the jumbo volume on the team.

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Physicians + Dentists

Doctor Loans

Designed for MD, DO, DMD, DDS, and DVM borrowers. No PMI, up to 100% financing to $1M, student loan debt excluded from DTI. Especially relevant for Munson Medical Center staff and healthcare professionals relocating to Northern Michigan.

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Build Your Own

Construction Loans

Land parcels outside Traverse City make construction lending one of our most common loan types in this market. One-time close construction-to-permanent financing funds the build and converts automatically. We work with builders throughout Grand Traverse County.

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Vacation + Seasonal

Second Home Loans

A significant portion of Traverse City real estate transactions involve buyers from downstate Michigan, Illinois, and Ohio purchasing seasonal or vacation properties. Second home financing has specific occupancy rules and rate pricing that differ from primary residence loans.

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Zero Down Nearby

USDA Loans (Surrounding Area)

Traverse City proper is not USDA-eligible, but many communities within 20 miles are. If your search extends into Leelanau, Benzie, or outer Grand Traverse County townships, zero-down USDA financing may apply. We check every address.

Check USDA Eligibility →
FAQ

Traverse City mortgage questions answered.

Grand Traverse County's median sale price was $405,223 for full-year 2025 per verified MLS data from Oltersdorf Realty. The average sale price was $519,434. Total residential sales volume hit $749 million, up 7.46% from 2024. Within Traverse City proper, median prices vary significantly by neighborhood -- downtown and lakefront properties trade well above county median. Redfin's December 2025 data showed a median of $310,000 for the month, reflecting seasonal variation and limited winter inventory.
Traverse City proper does not qualify for USDA Rural Development loans -- the city's population density places it above USDA eligibility thresholds. However, many communities within 15 to 30 minutes of downtown do qualify, including portions of Leelanau County, Benzie County, and outer Grand Traverse County townships. Communities like Suttons Bay, Benzonia, Honor, and Kingsley may be USDA-eligible depending on the specific address. We verify eligibility for every address individually -- no assumption either way.
Yes -- physician mortgage loans are available in Traverse City and are particularly relevant for staff at Munson Medical Center and affiliated practices. The program is available to MD, DO, DMD, DDS, and DVM designations. It allows up to 100% financing on loans up to $1 million with no PMI, excludes student loan debt from the DTI calculation entirely, and allows closing up to 90 days before an employment start date with a signed offer letter. Residents and fellows qualify. This is one of the more impactful programs we offer for healthcare professionals relocating to Northern Michigan.
Lakefront properties in and around Traverse City -- West Grand Traverse Bay, East Bay, Torch Lake, Duck Lake, Spider Lake -- frequently exceed the conventional conforming loan limit, which places them in jumbo territory. Jumbo loans require stronger credit (typically 700+), larger down payments, and additional reserves compared to conforming loans. If the property is a seasonal use, second home financing applies with its own rate pricing and occupancy requirements. Kirby handles most of the jumbo volume on the team -- the first call on any high-value lakefront purchase should be with him to get the financing picture clear before you make an offer.
Traverse City is considered a somewhat competitive market. In 2025, approximately 25% of homes within city limits sold above asking price and the average time on market was 68 days -- competitive by Northern Michigan standards. The market is driven by lifestyle buyers, remote workers, retirees, and second home purchasers from downstate and neighboring states. Well-priced turnkey properties in desirable locations move quickly. Having a fully underwritten pre-approval rather than a basic pre-qualification letter makes a real difference when presenting an offer.
Yes -- construction loans are one of the most common loan types we handle in the Traverse City area. The availability of land parcels in Grand Traverse, Leelanau, and Benzie Counties makes this a regular part of our business. We use a one-time close construction-to-permanent structure: the loan funds the build in stages as work is completed, then converts automatically to a permanent mortgage at completion -- eliminating a second closing and protecting you from rate changes during construction. We work with licensed builders throughout Northern Michigan.

Buying or refinancing
in Traverse City?

We are local, we know this market, and we close loans here every week. Start your pre-approval today or schedule a free consultation to talk through your specific situation.

Kirby and Angie Mortgage Loan Team | Union Home Mortgage | NMLS #2229229 | Angie Anderson NMLS #1999286 | Kirby Slocum NMLS #680817 | Licensed in Michigan, Ohio, and Indiana | Equal Housing Lender | 1396 Douglas Dr #22-A, Traverse City MI 49696. All loans subject to credit approval and underwriting review. Market data sourced from MLS, Redfin, and Oltersdorf Realty 2025 reports. Information provided for educational purposes only and does not constitute a loan commitment.