So, you’ve put your house up for sale and you’ve begun to look around for your new, upgraded home. In no time at all you have found your dream home but, there is one problem—you haven’t sold your house.
Most people can’t afford to pay two mortgages. This is where a Arizona bridge loan comes into play. When borrowers want to buy a new home before selling their initial investment a Arizona bridge loan can give you the money for a down payment on a new home before the sale of the old home is complete.
Unless, you have stashed away a big financial cushion chances are you don’t have the required down payment on your new home before you’ve received the funds from your old home’s sale. Sometimes, a seller will include a contingency in the home you are trying to buy. A contingency states that you won’t buy the new home until the sale of your old home. Unfortunately, in competitive real estate markets many sellers don’t want to deal with contingencies.
In a Arizona bridge loan your home is the security on the loan. A Arizona bridge loan is taken out from a hard money lender. Hard Money Loans in Arizona are asset-backed loans. You will pay origination fees and closing costs on the loan. After those fees and costs are paid you will have the money required to put down on the new home.
BENEFITS OF A BRIDGE LOAN
Bridge loans make it possible for borrowers to purchase the home they desire in a competitive real estate market. Sometimes, borrowers have to rent while they wait for the sale of their home to go through—that means they are, literally, throwing money away. If a borrower either doesn’t have the means to pay two mortgages or doesn’t have enough money for a down payment before the sale of their home closes, a Arizona bridge loan can provide them with the funds needed to purchase their new home while waiting on the sale of their old home to close.
Another benefit to a Arizona bridge loan is there is no contingency required. Sellers are more likely to want to work with you if they aren’t waiting on a contingency. This also gives buyers of your old home to have more time for inspections and finalizations.
Bridge loans are set up to be interest only loans, requiring a balloon payment at the end once you sell your old home. Many times, payments on bridge loans are deferred until a month or two after the borrower closes on the loans—giving you more time to handle the selling of your house with less financial stress.
A Arizona bridge loan is a fantastic way to get the funds you need to secure the down payment on your new home.
A Arizona bridge loan is a short-term term loan where the funds are used to bridge a financial gap. Bridge loans will help cover the cost of your down payment on your second home by using the equity you have as the collateral needed to secure the loan. After the sale of your home you simply pay back the hard money lender with the sale of your home.
Dennis Dahlberg
Broker/RI/CEO/MLO
Level 4 Funding LLC
Hard Money Lender
Hard Money Loans
Hard Money Loan
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
Dennis@level4funding.com
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.
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