December 10, 2018
December 10, 2018


A Arizona Bridge Loan is a loan that a borrower takes out against their property to finance the purchase of a new property.

A Arizona Bridge Loan is also known as a swing loan, gap financing or interim financing. They are typically taken out when a borrower is upgrading into a bigger home but their current home hasn’t sold. It literally “bridges” the gap between the time the old home is sold and the new home is purchased. Another way people deal with these situations is when a seller agrees to a contingency. But, many times the seller won’t agree to the contingency; a contingency is a contract that allows the buyer to agree to terms if certain actions occur. When a seller won’t agree to a contingency a Arizona Bridge Loan comes into play. The buyer is able to purchase the new property before the old property is sold. In a competitive housing market bridge loans become very useful for a borrower.


If a borrower currently has property up for sale, but wants to buy new property, knowing that the money from the current property they own will be paying for the new property, they would take out a bridge loan. It helps finance a new purchase so that property can be purchased before the sale of the old one. A Arizona Bridge Loan will pay off all existing liens and will use the excess funds as a down payment for the new property. Usually what this means is that you won’t make a payment on your Arizona Bridge Loan before your old property sells—instead you will be able to continue making payments on your current mortgage. Once, your old house sells you will use that money to pay off the bridge loan. These loans are usually the most popular when the housing market is hot; because there is so much competition for homes and sellers usually don’t have to agree to contingencies to sell their property. Bridge loans can be any size. Bridge loans are generally given through private money lenders, commonly called hard money lenders, who have more flexibility than banks and conventional loans.

Hard money lenders will work with borrowers looking for a bridge loan. But, how does this work?

Hard money lenders secure short-term loans by property. Since there are assets securing the loan, a high credit score is not necessary for approval of the loan. Hard money lenders will structure repayment and property repayment terms that are beneficial to both the borrower and the lender. Because hard money lenders do not have to adhere to the same requirements as banks there is much more flexibility in terms of the loan. Borrowers can choose to repay the loan before permanent financing is secured or after. Lenders will range in interest rates—generally between 7% and 15%. However, all bridge loans are short-term; ranging from six months to twelve months.

Dennis Dahlber Broker Ri CEO Level 4 Funding LLC
Dennis Dahlberg


Level 4 Funding LLC 
Hard Money Lender

Hard Money Loans

Hard Money Loan

Arizona Tel:  (623) 582-4444

Texas Tel:      (512) 516-1177


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.

© 2016 Level 4 Funding LLC. All Rights Reserved.
Copyright | Privacy Policy | *Terms & Conditions

Comments are closed.