Residential Bridge Loans in AZ
Real Estate Gap Financing in Arizona – Short Term Hard Money Loans
The most varied & flexible way to acquire short-term residential real estate investment financing in Arizona are Residential Bridge Loans.
Some Lenders we work with refer to any short-term real estate investment loan in AZ as a “Bridge Loan”. To many, if it’s short-term and it’s residential, it’s a Residential Bridge Loan.
However, at Glassridge, we like to be a bit more specific.
Glassridge Short-Term Residential Bridge Loans AZ
The Short-Term Residential Bridge Loan rates & terms listed below are subject to change, and will not apply universally. These are just rough ballpark rates & an outline of the typical terms.
|Eligible Property Types:||Single Family Residences (SFRs), 2 – 4 Unit Multiplexes|
|Eligible Uses:||Acquisition, Refinance, and/or Renovations.|
|Loan Term:||12 – 18 Months.|
|Min. Loan Balance:||$70k – $100k, (click here for low balance (<$70k) hard money loans).|
|Max LTV (Purchase Price):||65% – 80%, with up to 90%+ for highly qualified repeat Borrowers.|
|Max LTV (Rehab Costs):||90% – 100%|
|Interest Rate:||7% – 12.99%|
|Origination Fee:||2% – 5.75%|
|Processing Costs:||$395 – $695|
About Our Residential Real Estate Hard Money Bridge Loans in Arizona
We already have specialized loan types for common scenarios in Arizona like:
- Single Family Fix & Flip Loans
- 2 – 4 Unit Fix & Flip Loans
- Apartment Building Fix & Flip Loans
- Rehab Only Cash Out Refi Loans
Any one of the above could potentially be considered a Residential Bridge Loan, so there’s no reason to double up. At Glassridge, the way we specifically define a Residential Bridge Loan is as follows:
A short-term financing option to “bridge” a gap between two financial events (eg: purchase & sale, purchase & refi, etc), or to overcome a cash shortfall (eg: cash out refi to pay closing costs on a new deal).
The most important defining factor of a residential bridge loan is that it is short-term real estate financing in Arizona.
Typically they are less than 12 months in duration, often as short as 90 days. With such a short period of time before the loan comes due, it’s important to have a plan to rapidly sell or refinance a property when considering a Residential Bridge Loan in AZ.
Another name for a residential bridge loan is Residential Real Estate GAP Funding or GAP Financing, because this type of loan will help you to “bridge” a “gap” in your finances.
When To Use AZ Residential Bridge Loans
If you’re planning any type of Fix & Flip or want to cash out equity to pay for renovations in Arizona, we have other specific loan products custom tailored to your exact situation.
However, not every loan scenario falls neatly into these pre-defined categories, which is why we have generic Residential Gap Financing & Bridge Loans for situations like the following:
- Cash out one property to pay for the closing costs & down payment on a new property.
- Actually take title on quick a wholesale flip, closing as the buyer one day and as the seller the next (or soon thereafter).
- Get private money to close fast while you wait for the bank to approve your long-term loan.
- Buy out your business partner (or execute a hostile takeover!).
- Withdraw equity from your portfolio to use as cash for your business.
The most important factor to any type of Residential Real Estate Bridge Loans or Gap Financing is that they’re short-term. This means fast exit strategies, which also tends to mean higher rates.
The good news is that Hard Money Residential Bridge Loans in Arizona from a private lender like Glassridge will open up new potential transactions & investment strategies, since their flexibility to implement creative real estate strategies are unrivaled.
In fact, some of our Short-Term Residential Bridge Loans can even cover up to 70% – 90% LTV (in certain states, for qualified borrowers).
If you’re in Arizona and you’re wondering about whether a Residential Hard Money Bridge Loan or Hard Money Gap Financing is right for you, feel free to contact us directly for more info.