An Arizona Bridge Loan is a financial tool that allows for the use of equity in a property without actually having to sell the property. These short-term loans can be used when a homeowner wants to move to a new home but must also sell his or her current home to make the move financially possible. The loan is actually working as a bridge between the two transactions as it is not always possible to coordinate a sale and purchase of something as large as a home.
These use of a short-term loan can allow you to move directly from your old house to your new house rather than moving into a rental. If your old house sells quickly then you could be forced to move into a rental while you find your next home to purchase. This is not only stressful, but it can be very expensive to pay rent plus storage fees as well as paying the movers for two moves instead of just one.
Short term loans, also called Hard Money Loans in Texas, also offer the benefit of funding very quickly. The loan is based on the equity in your current home, and because of that it can be approved and funded in just days. This is a huge benefit over the time it would take to secure a traditional mortgage which is based on your creditworthiness and debt to income ratio. Even when banks are not interested in loaning you money due to your income or outstanding loans, many private lenders are happy to offer hard money.
Short-term Arizona Hard Money Loans offer some great benefits but those services do come at a higher price than a traditional loan. The interest rate is going to be several points higher than a traditional mortgage loan, and there are going to be other fees as well. Private lenders have more freedom to structure the loans as they choose, but most will charge interest, points at the finding of the loan and a few fees to cover the administrative costs as well as the inspections fees. But the news is not as bad as it may first appear, because you will only be paying this higher rate for a few months in most cases.
Using an Arizona Bridge Loan can be a very wise choice even though the cost is a little more than a traditional loan. In many cases, these Arizona Hard Money Loans are used when a traditional lender is not willing to fund a loan. And that means that hard money from a private lender is the borrowers only choice. So it is better to pay a little bit more than to miss out on a great deal. Borrowers just need to be certain to read the entire loan document and understand the agreement prior to signing it.
Level 4 Funding LLC
Hard Money Lender
Hard Money Loans
Hard Money Loan
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
Dennis Dahlberg Broker/RI/CEO
NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave | Austin | Texas | 78701
About the Author: Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 43 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.