Helping Borrowers Buy the Home They Need: Using Bridge Loans for Short Term Financing

Bridge loans are short term loans that can help borrowers make down payments on a new home. They can also be useful tools for developers and investors to take advantage of untapped equity.

                Bridge loan are short term loans taken out for a period of anywhere from 2 weeks to a few years. They are dependent on longer term financing or untapped equity in a property or business enterprise. Bridge loans are usually more expensive than traditional loans because they are more risky for the lender. This higher risk usually means a higher interest rate, however bridge loans are also usually quicker to obtain and require less documentation.

                Bridge loans are similar to hard money loans in that they are usually offered by private investors or equity firms. The loan is usually not based solely on credit scores or income but rather the equity and investment opportunity involved. They are both short terms loans and can be a good option for borrowers who need them. However, the two loans differ in that a hard money loan is an entire loan whereas a bridge loan is a short term loan that is in addition to other financing.

Who Benefits from Bridge Loan?

                Arizona Bridge loans can be used in a variety of different circumstances. One popular use is in real estate transactions. Specifically, if you are selling your home and using proceeds from the sale to fund a down payment on a new home. If you can qualify for both mortgages, you can use a bridge loan to help fund your down payment. The bridge loan would be the down payment portion of your new home and would be an additional loan you obtain. Once you sell your other home, the proceeds would be used to pay back the bridge loan. Basically, the loan would “bridge” the gap for your down payment until you were able to sell your home.

                A bridge loan can be helpful if you home does not show well when you are living in it. A bridge loan allows you to buy your new home with a loan for the down payment. Then you can move out and show your home when it is vacant or add furniture and other pieces to help stage it. This often helps a home sell more quickly than if it is being lived in while it is on the market. If you have small children, this is an especially attractive option because it can help relieve some of the pressure to keep your home show ready at all times.

                Another scenario in which Arizona Bridge Loan can be a good option is if you find your new home before you have an offer on your current home. A bridge loan can allow you to come up with the down payment to purchase the new home before your home sells. If the real estate market is moving fast, or the home you want is priced competitively, that can help ensure that you don’t lose the home while you wait for yours to sell. A bridge loan may also be helpful if you make a contingency offer on a new home. A contingency offer is an offer that is contingent on the sale of your home but the offer is only good for a certain amount of time, usually 3 to 6 months. If your contingency is running out and you don’t have an offer on your home, a bridge loan can help you purchase the new home before selling yours.

                It is important to keep in mind that a bridge loan is a loan that is in addition to your home financing. This means that in order to use a bridge loan to supplement a down payment, you will need to be able to qualify for both mortgages at once. Also, the loan needs to be paid back by existing equity in your home. This means that once the home sells, you need to have enough money left over to pay off the loan. Also, keep in mind that you will pay higher interest rates for a bridge loan, just like most short term, non-traditional loans.

If you find yourself in a situation where you could benefit from a Arizona bridge loan, risk less by working with a mortgage broker.

                A qualified mortgage broker can help you navigate the ins and outs of bridge loans. He can also ensure that you are working with reputable investors and equity firms. Your broker will even be able to help you negotiate the terms of your loan to help make sure you are getting the best deal possible. A mortgage broker will also explain an interest rates and fees to ensure you know exactly how much the credit will cost you each month and over the life of the loan.

                Don’t let waiting on a home sale keep you from buying your next dream home. A Arizona Mortgage Broker can help you look into bridge loans and other short term financing to help you make a down payment on a new home, before your current home is sold. 

Dennis Dahlberg
Broker/RI/CEO/MLO

Level 4 Funding LLC
Tel:  (623) 582-4444 | Fax: (888) 279-6917
www.Level4Funding.com

NMLS 1057378 | AZMB 0923961 | MLO 1057378
23335 N 18th Drive Suite 120
Phoenix AZ 85027

Things to Consider When Shopping for Arizona Home Loans

All home loans are not created equal. Different loan programs have different risks and benefits. Knowing your options can help you choose the right Arizona home loans for your family.

                If you are in the market to purchase a home in Arizona, it is important to understand what Arizona home loans products and services may be available to you. A variety of factors including income, debt to income ratio, FICO score, and the type of home you want to purchase can affect what loan product is the best for you. Knowing your options and what risks and benefits certain types of loans have will help you make an informed decision about which loan you should apply for.

                The best type of Arizona home loans depend on your purpose for purchasing a property. If you are purchasing a home to be your primary residence, there are a variety of programs you can look into to finance the home. The most common type of primary mortgage is a traditional loan. A traditional loan is a 30 year fixed loan, meaning that your interest rate and payments are fixed for the life of the loan. Most lenders require a down payment of at least 5% of the home purchase price but usually it is better if you can put down about 20% of the purchase price. This will keep your payments lower because you will not have to pay mortgage insurance. One important note about traditional mortgages is that they may not be ideal for borrowers with bad credit or who are self-employed. Traditional loans are usually the most stringent type of Arizona home loans, requiring a FICO score of 650 or higher and documentation of all income, assets, bank accounts, tax records, and monthly debt obligations.

                If you are denied a traditional mortgage for any reason but are still looking to purchase a home to be your primary residence, there are other programs you may benefit from. One is an FHA loan. An FHA loan is a federal lending program that has lower credit requirements than a traditional loan although it still does require the same amount of documentation. The loan is insured by the federal government so lenders are more likely to take a risk with a borrower that they may not take with a traditional loan. Be aware though that you will pay more for this risk in terms of monthly mortgage insurance. This will be added to your monthly payments and can be anywhere from 80 to over 200 dollars a month, depending on the amount of your loan.

                Another option for purchasing your home is an adjustable rate mortgage or ARM. This is an especially attractive option when interest rates on traditional loans and FHA loans are high. An adjustable rate mortgage has a fixed interest rate for the first part of the loan that is usually lower than the prime rate. This means that your monthly payment is low. Once the initial term is over, the rate resets and can often go up. An ARM is a good option if you plan on being able to refinance or sell before the rate adjusts.

                If you are planning on buying a home as an investment rather than a primary residence, a shorter term loan may be a better option for you. An ARM can save you money on interest while you renovate a home and then sell it for a profit before the rate adjusts. Another option for a fix and flip home is a hard money loan. This type of loan is given out by an investment group rather than a bank and is a short term loan. If you have bad credit or a high debt to income ratio a hard money loan can often be a good option because the investors look at the merit of the investment rather than just the qualifications of the borrower.

Finding an Arizona Mortgage Broker

                Once you have researched some different types of Arizona home loans, an important next step is to find a qualified Arizona mortgage broker. A broker can help you navigate the ins and outs of the loan market and recommend products or loans that fit your unique needs. In addition, federal loan programs and loan types are constantly changing so it is important to find someone who can help you say ahead of the curve. Your broker can also explain all loan terms to you as well as interest, payments, and fees. The broker should be able to explain to you exactly what the credit is going to cost you each month as well as over the lifetime of the loan.

Stop waiting to make your dreams come true.

                Find an Arizona Mortgage Broker and start looking into Arizonahome loans to purchase your dream home today!

Dennis Dahlberg
Broker/RI/CEO/MLO

Level 4 Funding LLC
Tel:  (623) 582-4444 | Fax: (888) 279-6917
www.Level4Funding.com

NMLS 1057378 | AZMB 0923961 | MLO 1057378
23335 N 18th Drive Suite 120
Phoenix AZ 85027

TIMESHARE SCAMS – ARE EVERY WHERE

Timeshare sales people shout about the opportunity to become an owner of a timeshare resort. Sure, the ability to return year-after-year comes with a certain sense of security; your next vacation is planned.

However, despite the security of a so-called guaranteed vacation, timeshares can be a very expensive propositions with lots of unforeseen restrictions.

That is why some many people cancel timeshare after they buy one. Today everyone is asking the question: Does a timeshare make financial sense?

What Is a Timeshare?

Understanding timeshare ownership; it entails payment of an upfront sum plus yearly maintenance fees.

Depending on the timeshare arrangement, owners either own the rights to a specific, fixed week or the rights to a floating arrangement, where they can visit for a week within a period of time each year.

It’s important to understand that with the wrong sales people both kinds of time-sharing can very easily become a timeshare scam.

Fixed And Floating Timeshare ArrangementsCan Either Be Deeded Or Non-Deeded.

Deeded timeshares are considered real property that can be sold or passed on to the next generation.

Non-deeded or right-to-use timeshares function more like leases, where an owner can use the unit for a specified time period for a number of years.

??? Are Timeshares A Good Investment ???

The Federal Trade Commission warns against buying timeshares as financial investments.

Why? The reason is very simple, the value of a timeshare generally decreases big time the day after purchasing the timeshare.

Additionally, vacation resorts are more desirable when they’re first built, and their facilities and amenities are brand-new; as they age, they become increasingly less desirable. Which is why so many people feel like saying: cancel my timeshare.

Owning A Timeshare Is very much Like Owning A Car – Both Depreciate A Lot The Second You Buy It.

In this way, owning a timeshare is a little bit like owning a car: You may get a lot of use out of it over the course of ten to twenty years, but it won’t be worth much once you try to sell it.

Additionally, there’s no cap on yearly maintenance fees, so the amount you pay every year will increase. After learning this many people want to again say; cancel my timeshare

Look For These Warning Signs To Detect Resale Fraud

Now days’ timeshare scams are targeting timeshare owners who want or need to resell.

Many timeshare owners may decide they can no longer afford their timeshare payments or they may have inherited a timeshare as part of a parent’s estate and don’t want to keep it. That’s where timeshare scams come in.

The Basic “Timeshare Resale Scams” Works Like This:

Scammers target likely sellers of timeshares with the promise that they either have a buyer ready to purchase the timeshare or the assurance that they can sell it.

All you need to do is pay an upfront fee—usually done by a bank wire to cover closing costs, services, taxes, timeshare maintenance or other fees.

Unfortunately, once you wire the money, no sale, rental or purchase and for sure no timeshare cancellation is completed and the scammer disappears with your money.

 Here Are Three Steps To Help You Stay Clear Of Possible Timeshare Resale Fraud.

 1. If It Sounds Too Good To Be True, It Probably Is.
Timeshare Resale scammers often promise they have a buyer who is ready and willing to pay a lot in order to get you to send money. Be cautious; no one can promise a quick sale.

2. Don’t Wire Money, Pay In Cash, Or Send A Money Order, Certified Bank Or Cashier’s Check.
Money sent by these methods is very difficult for law enforcement officials to help you recover. Most of the time, it’s as good as lost and will not bring a timeshare resale.

3. The Unpleasant Fact Is, Most Timeshare Resale And Rental Companies Are Rip-Offs.
As said before, many times they pretend to have a buyer for a seller even though the seller’s timeshare has never been listed.

Unfortunately, there are countless timeshare owners who have been taken advantage of by unscrupulous businesses offering to sell or rent their timeshare properties for a fee, all the while knowing that the timeshare owner’s properties will never rent or sell.

The overwhelming majority of these timeshare resales or rental companies are fly-by-night companies that are nothing more than listing companies.

The good news is, the Timeshare Cancel Center offers free timeshare resale or rental counseling services to ensure that the resale company a timeshare owner is considering is in fact legitimate.

A part of our service is to educate consumers who are considering timeshare resale.

If you have been approached by a timeshare resale scams company, give the Timeshare Cancel Center a call to validate the resale company prior to signing a timeshare resale contract.

For the timeshare consumer that has tried to resale their timeshare or for the timeshare owner that feels they have been misled and/or are victims of unethical and fraudulent timeshare sales practices while purchasing or upgrading their timeshare the “Timeshare  Cancel Service” is a very good service for them.

The “Timeshare Contract Cancel Service” involves our tried and true process which delivers timeshare cancellation results.

To find out even more about timeshare cancellation log onto our website: www.TimeshareCancelCenter.com

TIMESHARE CANCEL CENTER IS ON THE CONSUMER'S SIDE

FOR A FREE CONSULTATION

Call 24/7: 1-855-600-9053

We Can Help You Cancel Your Timeshare Contract And In Many Cases Even Get Your Money Back!

We Invite you to get a FREE consultation and let our professional timeshare consumer advocates explain all your consumer protection rights.

For A Free No Risk And No Obligation Consumer Advocate Consultation Call 24/7

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