Beretta Only: How Arizona Bridge Loans Literally “Bridge the Gap”

Moving into a new home is a very exciting prospect, and sometimes the ability to do it before selling your current home is an attractive option. Fortunately, there is an option available for folks who want to do just that.

It is not uncommon to hear Arizona Bridge Loan being referred to in any of the following ways: swing loans, wraps, or, more obviously, bridging the gap. All of these things mean the same thing: using a down payment on your current home in an effort to purchase your next. If you want to avoid selling your current home first or any possible contingencies in contracts, this may be an option that’s attractive to you.

The possibility of having freedom of searching, buying and selling your home, with no transition period between, is one reason many consider Arizona Bridge Loans. Renovating or relocating is oftentimes much easier without having to find a temporary living space. Others are attracted to them for their lack of contingencies, while the lenders themselves find the high interest rates and short-term, low-risk repayment valuable.

Evaluating Options That Are Right For You

A great credit score and a low debt to income ratio will be necessary if you want to obtain this type of loan. Not only that, but you must be able to afford a mortgage on two properties, as bridging the gap results in the temporary owning of two properties. The loans will have high interest rates and are expected to be paid back fast. Rates do vary across lenders; however, they happen to average about 2 percent higher than the market. The loan’s LTV, loan to value ratio, will also affect them, in addition to your personal credit history. These are definitely things you want to consider before jumping into the loan. Understanding the housing market and evaluating how your home will fare against the rest is something that will impact your decision. If your home isn’t selling, it’s possible to get a loan extension. Still, you will want to be prepared for all possible outcomes ahead of time and know if you can handle the possible stress of all of these outcomes, and know how to move forward and plan possible solutions.

Making a Successful Decision

If you’ve considered all factors of your situation and believe Arizona Bridge Loan are right for you, it’s possible to find a lender at your local bank or credit union. If you are feeling doubtful, there are still alternatives you can consider including a 401 k and home equity loans. Personal loans are another option that may be suitable for your situation. They do not have high interest rates, like home equity loans, and can be combined with other types of loans. Analyzing all of your options will ensure that you make the decision that is best for you. There are options when it comes to borrowing—it just comes down to knowing what your situation calls for, and where to look.

Dennis Dahlber Broker Ri CEO Level 4 Funding LLC 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

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.