Looking for a Arizona Construction Loan? 3 Questions to Ask Yourself

Ready to build your dream property? It might surprise you to learn that you have more options than just a traditional mortgage; an Arizona Construction Loan may be another route to your real estate dreams.

Loans for new construction work differently than a mortgage for an existing property. Traditional home loans use a home’s condition, comparable properties, and appraisals to determine rates and terms. Usually, they come with interest rates in the 3-10 percent range and last for 15-30 years. Arizona Construction Loans offer shorter terms and higher interest rates, primarily because the people using them build a property and sell it quickly.

There are two types of Arizona Construction Loans. There are the kinds you get from an institution like a bank or credit union and there are ones that are funded by private money.

Choosing Between a Traditional and a Hard Money Arizona Construction Loan

These three questions will help you decide which type of loan is right for you:

1. How fast do I need the money? It’s the truth — construction is all about budgets, time-crunches, and deadlines. If you have a month or two to wait for your funding to get the project started, a conventional bank loan will work just fine. If, on the other hand, you need the money quickly so you can start getting work done and stay on schedule, a Arizona Hard Money Loan may be a better option. Whereas a bank loan typically takes at least 30 days, a Arizona Hard Money Loan can be in your account in as little as a week.

2. What do I qualify for? With a loan from a big institution, you’ll need to provide proof of income, show that your credit score is at least 700, and demonstrate that you have no blemishes in your financial life. Arizona Hard Money Lenders use collateral to secure the loan, so they’re able to work outside the one-size-fits-all system.

3. What loan structure works for me? Bank loans are fairly inflexible. They have rates and terms that are essentially set in stone, which doesn’t give you a lot of space to tailor the loan for your needs. A hard money lender uses private funds and isn’t bound by the same restrictions. They can structure the loan to work well for each unique situation.

Finding a Hard Money Lender in Arizona

If you’ve weighed the pros and cons and decided a hard money Arizona Construction Loan is the right move for your circumstances, you’ll want to sit down with a private money lender in Arizona. He or she can listen to your plans and help you figure out the best course of action.

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.