Bridge loans are short-term real estate financing designed to cover the gap between two transactions. For Arizona real estate investors, a bridge loan is the difference between closing on a time-sensitive opportunity and watching it slip away while bank financing slowly works through underwriting. Hilton Financial Corporation has provided bridge financing to Arizona investors since 1980. Our bridge program closes in 3 to 7 business days and is structured around how investors actually buy and reposition real estate.
What Is a Bridge Loan?
A bridge loan is a short-term loan, typically 6 to 24 months, used to “bridge” the gap between two events: most commonly the acquisition of a new property and the eventual sale or refinancing of an existing one. Bridge loans are asset-based and secured by the real estate involved in the transaction. Because they are short-term and intended to be paid off quickly through a defined exit strategy, they fund faster and with less documentation than conventional financing.
For investors, a bridge loan unlocks transactions that simply cannot wait for traditional bank timelines. Arizona’s competitive Phoenix-area market in particular rewards investors who can close in days rather than weeks — bridge financing is the working capital that makes that speed possible.
When to Use a Bridge Loan in Arizona
Bridge loans are the right tool for several specific investor scenarios:
- Buying a new property before selling an existing one — A bridge loan against your existing equity funds the new acquisition; you pay it off when the existing property sells.
- Closing on a time-sensitive deal — Auction redemption windows, expiring contracts, or motivated sellers who require fast close. Bridge financing closes in days.
- 1031 exchange financing — Bridge capital meets the strict 45-day identification and 180-day closing windows that 1031 exchanges require. Bank financing rarely does.
- Repositioning a property before permanent financing — Acquire a value-add property, complete the repositioning (light rehab, lease-up, stabilization), then refinance into long-term debt at a higher valuation.
- Distressed acquisitions — Properties banks will not lend against (REO, distressed, partial-build) can still be acquired with asset-based bridge financing.
- Pre-development land — Acquire land with a development plan; bridge loan funds the holding period until construction financing or permanent debt is in place.
- Cash-out refinancing on equity — Pull equity out of an existing Arizona property to fund another acquisition, with a defined exit strategy back into long-term financing.
Bridge Loan Program Terms
- Loan amounts: $50,000 to $5,000,000+
- Loan-to-value (LTV): Up to 70% of as-is value of the property securing the bridge loan
- Term length: 6 months to 24 months (most bridge loans pay off within 6-12 months)
- Closing time: 3 to 7 business days; 48-72 hours on time-sensitive deals
- Payment structure: Interest-only with balloon at maturity
- Documentation: Streamlined; no income verification required
- Credit minimum: None — bridge loans are equity and exit-strategy driven
- Prepayment: Flexible; pay off as soon as your exit transaction completes, no long-term lock-in penalties
- Cross-collateral: Available; secure the bridge against multiple Arizona properties for higher leverage
Bridge Loans vs Other Hard Money Products
How bridge loans differ from related products in our program:
- vs. Fix-and-flip loans: Fix-and-flip loans include rehab capital and tie draws to construction milestones. Bridge loans are typically capital-only against existing equity.
- vs. Construction loans: Construction loans fund ground-up or major rehab projects with milestone-based draws. Bridge loans fund acquisitions or equity events without active construction.
- vs. Long-term hard money: Some hard money loans run 2-3 years for buy-and-hold investors. Bridge loans are explicitly short-duration with a clear exit transaction in view.
The 4-Step Bridge Loan Application Process
- Initial inquiry — Call (602) 375-8951 or submit a quote request. Tell us about the bridge scenario: what you are buying, what you are selling or refinancing, and your target close date.
- Property and exit review — We evaluate the property securing the bridge, the as-is value, and the exit transaction (sale contract, refinance approval, 1031 timeline). Most reviews complete within 24 hours.
- Term sheet — Written term sheet with loan amount, interest rate, points, term length, and any conditions tied to the exit.
- Closing — Streamlined documentation followed by closing in 3 to 7 business days. Time-sensitive bridges (auction redemption, 1031 deadlines) can close in 48-72 hours when title work is ready.
Why Arizona Investors Choose Hilton Financial for Bridge Financing
- Speed: 3-7 day close from completed application is the standard, not the exception. Time-sensitive deals close in 48-72 hours.
- Direct lending: We fund from our own capital. There is no broker chain to negotiate, no third-party syndication delay.
- Flexibility on the exit: Sale, refinance, or 1031 closing — we underwrite around your specific exit transaction.
- 40+ years of bridge experience: Since 1980, with over $1 billion funded across all loan types in Arizona.
- NMLS Licensed: Jack W. Hilton, NMLS #143636 · AZ BK #1001945
- Phoenix-based principals: Direct conversations, no underwriting committee.
Frequently Asked Questions About Bridge Loans
How fast can a bridge loan close in Arizona?
Standard bridge loans close in 3 to 7 business days from completed application. Time-sensitive bridges (1031 exchange deadlines, auction acquisitions, expiring purchase contracts) regularly close in 48 to 72 hours when title work and property documentation are ready.
What is the maximum loan-to-value on a bridge loan?
Standard LTV is up to 70% of the property’s as-is value. Higher leverage is available with cross-collateral against additional Arizona properties.
How long is a typical bridge loan term?
Bridge loans run 6 to 24 months, but most actually pay off within 6 to 12 months once the exit transaction (sale, refinance, 1031 closing) completes. There are no long-term lock-in penalties.
Do bridge loans require a credit score check?
No minimum credit score is required. Approval is driven by the property securing the bridge, the LTV, and the strength of the exit strategy.
Can a bridge loan be used for a 1031 exchange?
Yes. Bridge financing is a common 1031 exchange tool because the 45-day identification and 180-day closing windows are too short for conventional bank financing. We have closed many 1031 bridges within the required timeline.
Can I prepay a bridge loan early?
Yes. Our bridge loans are designed to pay off as soon as the exit transaction completes, with no long-term lock-in penalty. Most bridge loans pay off within 6-12 months.
What types of properties can a bridge loan finance?
Single-family non-owner-occupied investment properties, multi-family up to four units, small commercial, mixed-use, vacant land, partially-built and distressed properties. We do not lend on owner-occupied primary residences.
Get Started With an Arizona Bridge Loan
Call (602) 375-8951 or request a quote online. If your bridge is time-sensitive (auction, 1031, contract close), mention the deadline when you contact us. We respond within one business day with clear next steps.