Looking for an Arizona Construction Loan? Your options can be both confusing and overwhelming, so here are three questions to help you decide which loan works best for you.
With all the options out there to fund your next (or your first) construction project, it can be difficult to know what kind of loan is the best fit. Every project is different and so is every loan. Should you go with a structured bank loan for the low interest rates but inflexible terms and rigid qualification standards? Or, should you use an asset-based lender with a little more risk but good flexibility and fast approval process? Ask yourself these three questions:
1. Do you Need the Money Fast? If you have time to wait a month or two to get your project funded, the bank might be the best bet. If you need to access your money and get started within a week or two (because of a great opportunity), a hard money Arizona Construction Loan might be the better option.
2. What Do You Qualify For? If you’ve never filed for bankruptcy, had a short sale or a blemish on your credit score, you’ll probably qualify for a fantastic rate at a bank. If you’re income and credit score doesn’t meet their sometimes-high standards, a private money loan may fit your needs more.
3. How Would You Like to Structure Your Loan? If you’re okay with accepting a loan on the bank’s terms (their rates, their schedule, and their fees), that might work perfectly well for your project. If you want to sit down with a lender and work out the details together, a hard money loan may work better.
Bank loans work for most people. But if you’ve been turned down because you don’t meet their threshold or your project is too risky, you might consider the hard money route. Additionally, if you need to leap at a great deal and secure land, an asset-based lender may be able to help you more.
If you still have questions about choosing a loan for your project, we may be able to help. Here are Level 4 Funding, we offer a 90 LTV Arizona Construction Loan, interest-only payments, and terms up to 24 months. Give us a call or shoot us an email to see what we can do for you; all we’ll need is a budget, permits and a plan.
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.