How to Get a Bridge Loan Arizona Financial Experts Trust

According to many experts, you only need a few things to sell your house, a bridge loan, Arizona real estate agent, and a good price. If you are interested in learning more about how to make your home selling dreams come true, a bridge loan might be the right option for you and your family. 

Selling a home while you are still living in it can be a nightmare, especially if you have kids or pets. Keeping the home show worthy, leaving for each showing, and simultaneously looking for a new home to move into is enough to make anyone lose their mind. If you find yourself in this situation, you may think there is no other option. After all, even if you can qualify for two mortgages, most sellers rely on the sale of their current home to finance the down payment on the new home they are purchasing. 

If you need the proceeds from the sale of your current home to use as a down payment on a new home, there is an option that can help you move before you sell. You can get a bridge loan Arizona real estate experts recommend to finance your down payment. 

A bridge loan is exactly what it sounds like, it helps bridge the financial gap between selling your current home and needing a down payment for a new home. With a bridge loan, Arizona families can borrow the down payment for the new home using their home that is up for sale as collateral. Once your home sells you pay back your bridge loan. Usually this time frame is so short that many borrowers don't even end up paying interest on their bridge loan. 

With a bridge loan, Arizona borrowers benefit from being able to sell their home more quickly and with less hassle. A vacant home shows better than one that is filled with clutter and you don't have to worry about scheduling showings. You can be in your new home while your home is still on the market. 

3 Things you Need to Know About A Bridge Loan Arizona Home Sellers Use To Finance A Down Payment

A few things you should know about bridge loans before you apply. Firstly, you have to have fairly good credit and a pretty high income. Not for the bridge loan itself, but you have to be able to qualify for two mortgages because, for a short time, you will own both homes. There are ways around this using ARMs and hard money loans, so talk to your financial professional if you don't meet this criteria. 

Secondly, you need to know that you can't walk into a bank and request a bridge loan. A bridge loan is a specialized type of loan that is usually given by a private money lender. The closest thing a bank has to offer is a home equity loan but most banks won't give out this type of loan on a property that is for sale. Your best bet is to find a company for a bridge loan Arizona financial experts trust like the licensed brokers at Level 4 Funding. 

Finally, bridge loans are short term loans, meaning they have higher interest rates than traditional mortgages. However, talk to your loan officer about a longer grace period. Often, you end up selling your home before your grace period is over and don't even have to make a payment on your bridge loan. 

Once you have decided that a bridge loan Arizona is the right help for you, contact a private money lender to get the process started today!

Call our experts at Level 4 Funding to get your bridge loan financed today. Don't delay your move or make selling your home more stressful than it needs to be. With a bridge loan you can move today!

Dennis Dahlberg Broker/RI/CEO/MLO

Level 4 Funding LLC
Arizona Tel:  (623) 582-4444 
Texas Tel:      (512) 516-1177 
dennis@level4funding.com
www.Level4Funding.com

NMLS 1057378 | AZMB 0923961 | MLO 1057378
23335 N 18th Drive Suite 120 | 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 38 years. They have 2 beautiful daughters 4 amazing grandchildren. Dennis has been an Arizona resident for the past 32 years.

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