How Does a Senior Care Bridge Loan Work?
Are you thinking about moving a loved one into a senior living community and wondering how you’ll be able to afford the cost of a quality senior care home? If so, rest assured that it’s very normal to be concerned about the affordability of senior care. The good news is you don’t have to figure this out alone.
BridgeWater Assisted Living prioritizes finding financial solutions for families like yours so senior care is more affordable. We believe you should be focusing your time and energy on your loved one, not worrying about how you’re going to pay for their care. We’ll explain how a senior care bridge loan works so you have a better sense of whether it may work for you.
What Is a Senior Care Bridge Loan?
Bridge loans are a type of temporary financing for people who are waiting to secure permanent funding. It’s a monetary “bridge” from the point of need to the point when the money to pay for it comes in. When it comes to senior care, bridge loans provide immediate financing while you wait for other funds to become available.
For instance, you may be selling your home, planning an estate sale, or applying for veterans benefits, but the money hasn’t become available yet. The bridge loan would provide you access to the cash you need to pay for senior care living until you’re able to secure other funding to repay the loan. Usually, the funds are sent directly to the senior care community of your choosing so that all care costs are coordinated directly through your bridge loan lender.
What Do I Need to Know About a Senior Care Bridge Loan?
A senior care bridge loan functions similarly to a credit line. You will be responsible for making interest-only payments on the bridge loan as you await permanent financing. Keep in mind that bridge loans are meant to be short-term loans and typically, the terms last for one year. You’ll want to be certain that your financing will come through before the time you have to repay your bridge loan in full.
If you are certain that you will be able to secure permanent financing, such as through the sale of your home, then a bridge loan could be a good option to immediately access the funds you need to transition to senior care living. In many instances, you’ll have access to the funds within 24 hours of approval. Oftentimes, there are no application fees or prepayment penalties as well. These are just a few of the reasons many people opt for a bridge loan over traditional financing.
How Do I Apply for a Senior Care Bridge Loan?
If you believe you may want to use a bridge loan to pay for senior care, give us a call. We’ll put you in touch with one of our community benefits advocates who can answer your questions about bridge loans and walk you through other available options so that we find the right financial solution for you. BridgeWater Assisted Living believes everyone should spend their golden years living life to its fullest. That begins with finding a senior care living community that you can afford to call home, so contact us and explore your options today!