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Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
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 TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB
MIC-Info: RSA-MD5,RSA,
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 feFttmg3zwlX376UxEG08g==

<SEC-DOCUMENT>0001179110-07-016045.txt : 20070803
<SEC-HEADER>0001179110-07-016045.hdr.sgml : 20070803
<ACCEPTANCE-DATETIME>20070803214309
ACCESSION NUMBER:		0001179110-07-016045
CONFORMED SUBMISSION TYPE:	4
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20070801
FILED AS OF DATE:		20070803
DATE AS OF CHANGE:		20070803

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			Bennett Michael T
		CENTRAL INDEX KEY:			0001327006

	FILING VALUES:
		FORM TYPE:		4
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-32386
		FILM NUMBER:		071025497

	BUSINESS ADDRESS:	
		BUSINESS PHONE:		(480) 606-0820

	MAIL ADDRESS:	
		STREET 1:		14631 N. SCOTTSDALE ROAD, SUITE 200
		CITY:			SCOTTSDALE
		STATE:			AZ
		ZIP:			85254

ISSUER:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			SPIRIT FINANCE CORP
		CENTRAL INDEX KEY:			0001277406
		STANDARD INDUSTRIAL CLASSIFICATION:	REAL ESTATE INVESTMENT TRUSTS [6798]
		IRS NUMBER:				200175773
		FISCAL YEAR END:			1231

	BUSINESS ADDRESS:	
		STREET 1:		14631 N. SCOTTSDALE ROAD
		STREET 2:		SUITE 200
		CITY:			SCOTTSDALE
		STATE:			AZ
		ZIP:			85254
		BUSINESS PHONE:		4806060820

	MAIL ADDRESS:	
		STREET 1:		14631 N. SCOTTSDALE ROAD
		STREET 2:		SUITE 200
		CITY:			SCOTTSDALE
		STATE:			AZ
		ZIP:			85254
</SEC-HEADER>
<DOCUMENT>
<TYPE>4
<SEQUENCE>1
<FILENAME>edgar.xml
<DESCRIPTION>FORM 4 -
<TEXT>
<XML>
<?xml version="1.0"?>
<ownershipDocument>

    <schemaVersion>X0202</schemaVersion>

    <documentType>4</documentType>

    <periodOfReport>2007-08-01</periodOfReport>

    <notSubjectToSection16>1</notSubjectToSection16>

    <issuer>
        <issuerCik>0001277406</issuerCik>
        <issuerName>SPIRIT FINANCE CORP</issuerName>
        <issuerTradingSymbol>SFC</issuerTradingSymbol>
    </issuer>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001327006</rptOwnerCik>
            <rptOwnerName>Bennett Michael T</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>14631 N SCOTTSDALE RD</rptOwnerStreet1>
            <rptOwnerStreet2>SUITE 200</rptOwnerStreet2>
            <rptOwnerCity>SCOTTSDALE</rptOwnerCity>
            <rptOwnerState>AZ</rptOwnerState>
            <rptOwnerZipCode>85254</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>0</isDirector>
            <isOfficer>1</isOfficer>
            <isTenPercentOwner>0</isTenPercentOwner>
            <isOther>0</isOther>
            <officerTitle>SVP-Op/CCO/Sec</officerTitle>
            <otherText></otherText>
        </reportingOwnerRelationship>
    </reportingOwner>

    <nonDerivativeTable>
        <nonDerivativeTransaction>
            <securityTitle>
                <value>Common Stock</value>
            </securityTitle>
            <transactionDate>
                <value>2007-08-01</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>J</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>95489</value>
                </transactionShares>
                <transactionPricePerShare>
                    <footnoteId id="F1"/>
                    <footnoteId id="F2"/>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>D</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>0</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                </directOrIndirectOwnership>
            </ownershipNature>
        </nonDerivativeTransaction>
    </nonDerivativeTable>

    <derivativeTable></derivativeTable>

    <footnotes>
        <footnote id="F1">Disposed of pursuant to the merger (the &quot;Merger&quot;) contemplated by the Agreement and Plan of Merger dated as of March 12, 2007 by and among Spirit Finance Corporation (&quot;Spirit&quot;), Redford Holdco, LLC (&quot;Redford&quot;) and Redford Merger Co. (the &quot;Merger Agreement&quot;). At the effective time of the Merger, each outstanding share of Spirit common stock, par value $.01 per share (&quot;Spirit common stock&quot;), was converted into the right to receive $14.50 in cash.</footnote>
        <footnote id="F2">Of the 95,489 shares owned prior to the closing of the Merger, 17,242 shares of Spirit common stock were exchanged for an equal number of units in Redford immediately prior to the closing of the Merger.</footnote>
    </footnotes>

    <ownerSignature>
        <signatureName>/s/ Michael T. Bennett</signatureName>
        <signatureDate>2007-08-03</signatureDate>
    </ownerSignature>
</ownershipDocument>
</XML>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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