Hard Money Bridge Loans & Financing

Hard Money Lenders Arizona

40 N. Central Ave. Suite #1400
Phoenix, AZ 85004
(480) 999-6183

Barrett Financial Group (Hard Money Lenders Arizona) is a direct Arizona bridge loan lender with many years of experience providing homeowners and real estate investors with residential and commercial bridge loans. With fast approval times, fast funding, reliable service and competitive rates for direct bridge loan financing, Barrett Financial Group has become a top hard money residential bridge loan lender in Arizona.

In several cases, opting for bridge financing is the best way to quickly and easily borrow against the current equity in the real estate being considered. Hard money bridge loans are often financed within days for certain investment properties. If it is a residential bridge loan for owner-occupied property, the approval process takes two to two and a half weeks because of the existing federal regulations lenders have to comply with. A private bridge loan from Hard Money Lenders Arizona is often sent for approval and then funded faster than all other sources of bridge loan financing.

Arizona Based Bridge Loan Providers

A direct Arizona bridge loan lender, Barrett Financial Group offers real estate bridge loans throughout the state of Arizona. You can contact us today to have your real estate bridge loan mortgage funded quickly.

Hard Money Bridge Financing and Loans

Learn more about hard money bridge financing and loans here.

What Exactly is a Bridge Loan?

To put it simply, the real estate bridge loan is a type of short-term financing that’s provided to borrowers to help them purchase property before their own property has sold. A bridge loan is a type of short-term loan for real estate transactions which usually require fast funding.

Property owners can use the bridge loan for borrowing against the current equity that’s in the property they currently own in order to finance their purchase of a new property. Once the new property is acquired, the former property is sold, which is how the bridge loan is repaid. A bridge loan is also a viable solution in the reverse order by receiving the loan against the new property that’s being purchased and then paying off the loan when the previous property has been sold.

In most cases, financing for bridge loans has a term that is under 12 months. Barret Financial Group is a direct Arizona bridge loan lender and can provide funding for hard money loans on any investment property within a few days. The owner-occupied bridge loans for residential property take a bit longer to fund.

Different Type of Real Estate Bridge Loans

There are several types of estate bridge loans on various property types, including bridge loans for a real estate investor who is purchasing a new investment, as well as residential bridge loans designed for homeowners who are moving into a new property. Barrett Financial Group has the expertise and experience to offer all types of bridge loans for various purposes, including bridge loans for investment property, commercial bridge loans, bridge loans for a home purchase (owner-occupied bridge loans), business bridge loans, and bridge loans for the purchase of residential real estate.

A real estate bridge loan is actually known by several other names, with some of the most common including:

  • Swing loan
  • Bridging loan
  • Interim financing
  • Bridge financing
  • Caveat loan
  • Bridge loan mortgage
  • Gap financing
  • Bridge mortgage

Residential Bridge Lenders and Loans

The residential bridge loan is a popular method for property owners (homeowners) and real estate investors to borrow against the current residential property they own in order to purchase a new piece of property. A residential bridge loan for a home purchase is also a viable option when done in the reverse order by securing the loan with the new property.

In some situations, the property owner may wish to purchase a new owner-occupied primary residence by they don’t have the needed liquid funds for the required down payment. If this is the case, the property owner could opt to sell their existing residence and use the sale’s proceeds as a down payment – or even an all-cash offer – but then they would be forced to find temporary housing until the purchase of the new primary residence is finished. This is really a logistical hassle, as the person is forced to move twice. All of this can be avoided by opting for bridge loan financing from Hard Money Lenders Arizona.
With the residential bridge loan, the owner of the property can extract equity from their current property to get enough for a full down payment or to provide a complete cash offer to purchase new property or a new home. After the new house is acquired the initial property is sold, which is what pays the residential bridge loan.

In most cases, the residential bridge loan lender isn’t concerned with how credit-worthy a borrower is. Instead, Hard Money Lenders Arizona focuses on the value of the property as well as the equity the borrower has in the property. This is due to the fact that a real estate bridge loan is actually secured by the equity of the borrower’s home, which allows the lender to not worry about credit issues or income verification when considering if they should approve the private bridge loan. This is extremely beneficial for a borrower with a low credit score or problems on their record, but who have adequate equity in the property they currently own.

A residential bridge loan lender can offer funding extremely quickly as the funds source is both flexible and fast private money, rather than what credit unions and banks can do.

Retirees and Seniors: Bridge Loans are an Option

The only type of bridge loan a senior or retiree may be able to acquire is a private bridge loan because they don’t have enough income to qualify for an owner-occupied home loan. A senior can receive a bridge loan and then borrow against the equity in their home to buy a new home without having to provide proof about their income. Furthermore, their debt to income ratio is a non-issue. When the other home is eventually sold, it will serve as repayment for the bridge loan received.

Commercial Bridge Loans and Commercial Mortgage Bridge Loans

A commercial mortgage bridge loan is a type of short-term loan designed specifically for commercial real estate. This type of bridge loan can be given to commercial property owners who want to borrow against the real estate they currently own to fund down payments or to raise the funds for an all-cash purchase of some new, commercial property. In many cases, this option is sought if the owner of the real estate does not have sufficient liquidity, but they have plenty of equity to borrow against their property. After the new commercial property has been purchased, the borrower has the ability to sell their existing property to pay off the short-term loan that was provided.
Most commercial bridge loans will have a lower LTV – loan to value ratio – than the residential bridge loan and the commercial lenders may have to acquire more information as well as documentation as commercial loans are much more complex than the residential loans.

Frequently Asked Questions About Bridge Loans

Some of the most frequently asked questions about bridge loans can be found here.

  • What is a bridge loan?

    Bridge loans are short-term loans that work to “bridge the gap” between other types of long-term financing. The bridge financing is secured by real estate, and they have higher interest rates than a conventional loan because of the increased risk associated with them. They are uniquely designed for borrowers and investors who are involved in some type of real estate transaction or project, such as purchasing foreclosures or short sales, making improvements on a piece of land, or hard money rehabs. Residential and commercial bridge loans are available to any property owner who wants to borrow against the equity that is in their currently owned property.

  • How do you get a bridge loan?

    Financing for a bridge loan is pretty easy and straightforward compared to trying to obtain financing from conventional lenders such as credit unions or banks. All you have to do is to contact a bridge loan lender, such as Hard Money Lenders Arizona, and the fill out the application. The lender will information about the borrower, along with the property in question. They will also have to analyze this information while confirming the property’s value. The lender will then consider the amount they can lend and come up with the loan terms. The loan should be funded within as little as a week.

  • How does a bridge loan work?

    With a bridge loan, the property owner borrows against the real estate they currently own and pull the equity out with a bridge loan. When the loan is funded, the borrower can purchase new property. After the property has been secured, the initial property is sold, allowing the bridge loan to be paid in full.

  • When should you use a bridge loan?

    Bridge financing is needed when borrowers need capital quickly and for a short period of time – 12 months or fewer. The borrower also has to have some type of property to use as collateral to borrow against and to have enough of a down payment to use for the purchase if they are buying new property with the proceeds coming from the financing of the bridge loan.

  • How long does it take to receive the bridge loan?

    In most cases, it can take one to three weeks to have the bridge loan funded. The amount of time this takes varies based on the specific variety of loan needed. The consumer purpose residential bridge loan, which is the one secured by the borrower’s existing property, is going to take two to two and a half weeks due to the regulations that are now in place. The business purpose bridge loan may be completed in just a week if necessary.

  • How does the bridge loan work when purchasing a home?

    Bridge loans are valuable for homeowners who want to buy a new home but who don’t have the liquidity to make this purchase. With the bridge loan, the homeowner can borrow against the existing equity to purchase the new home they want.

Start your hard money loan application today! Call Us At (480) 999-6183 or click below

This offer is not guaranteed if you do not meet our criteria, including credit worthiness, insurability or ability to providing acceptable property as collateral. Terms and conditions apply. Programs, rates, terms and conditions are subject to change and are subject to borrower(s) qualification. This is not a commitment to lend. The content in this website has not been approved, reviewed, sponsored or endorsed by any department or government agency.
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