Bridge loans in Arizona 2026, complete guide
Bridge loans let AZ move-up buyers purchase their next home before selling the current one. Here's how they actually work in 2026, what they cost, and when to use one.
What is a bridge loan?
A bridge loan is short-term financing (typically 6-12 months) that lets you tap the equity in your current home to fund the down payment + closing on your new home, before you've sold the current one.
You pay off the bridge loan when your current home sells. The interest-only payments during the bridge period are usually manageable.
Typical AZ bridge loan terms (2026)
- Term: 6-12 months (some extend to 18 months)
- Interest rate: priced case-by-case after underwriting; quoted on the consult, not from a generic range
- LTV: Up to 80% of combined home values
- Monthly payment: Interest-only during bridge period
- Closing costs: file-specific; we walk through actuals on the consult
- Origination fee: file-specific; quoted on the consult
When AZ bridge loans make sense
- You found the perfect AZ home + can't wait to sell first. Common in fast-moving Phoenix metro market.
- Selling first means losing your current home + buying back later at higher price. AZ markets appreciate, waiting can cost more than bridge interest.
- You need to remove the contingency from your offer. Sellers prefer non-contingent offers; bridge financing makes you non-contingent.
- You have substantial current home equity — 40%+ ideally.
- Your current home is highly likely to sell within 6-9 months.
When bridge loans DON'T make sense
- Limited equity in current home. If LTV on current home is 80%+, bridge math doesn't work.
- Current home is overpriced for AZ market. Might not sell within bridge period.
- Cash flow doesn't support bridge interest payment. Adding $1,500-$3,000/month in bridge interest is real.
- You can wait + sell first. Cheaper financing path if you can be patient.
AZ alternatives to bridge loans
- Buy Before You Sell (BBYS) programs — Mike's specialty. Cornerstone has BBYS-equivalent programs that may be cheaper than traditional bridge.
- HELOC on current home — Often lower rate than bridge; harder to time-restrict
- Cash-out refi of current home — Pull equity but takes longer than bridge
- Contingent offer with kick-out clause — Standard option; sometimes accepted in slower markets
Real example — Move from Tempe to Verrado
Current home in Tempe: $445K market value, $185K mortgage balance, $260K equity.
New home in Verrado: $525K, needs 10% down ($52,500) + closing costs (~$11K) = $63,500 cash to close.
With bridge loan
- Bridge against Tempe equity: $260K available, $80K used for down payment + closing on Verrado
- Bridge interest cost depends on your specific scenario; quoted after file review
- Tempe home sells in 90 days for $440K
- Bridge paid off at close of Tempe sale
- Net cost of bridge: ~$2,500 (3 months of interest)
Without bridge (sell first, buy later)
- Sell Tempe first, get $255K proceeds (after sale costs)
- Move into temporary housing $3K/month × 3 months = $9K
- Find new home, write offer, close — Verrado now $545K (AZ market appreciated)
- Net cost: $9K rent + $20K higher purchase price = $29K worse off
Bridge wins by ~$26,500 in this scenario. AZ market appreciation is the key variable.
How Mike's branch handles bridge loans
Cornerstone offers BBYS-equivalent financing for AZ buyers. Some programs are more competitive than traditional bridge loan terms. Each scenario is different.
Free analysis of bridge vs alternative paths for your specific AZ move. Contact Mike.