Life happens fast. Major financial transactions often don’t—so sometimes when a loved one needs to make a move into senior living, it can be a challenge to access the necessary funds fast enough. That’s where bridge loans come in, offering immediate financing for senior care expenses while families wait for more permanent funding to become available. Read on to learn if a bridge loan might be what your family needs.

Why do I need a bridge loan?

Many of the usual funding sources for senior living—such as veterans benefits, long-term care insurance and the proceeds from the sale of a home—take at least a few months to start paying out. A bridge loan offers a short-term solution to this problem, bridging the gap from the time senior care is needed until other money is accessible.

What can I use the money for?

Bridge loans cover the immediate expenses associated with moving into senior living, such as community fees (usually a one-time payment at move-in) and monthly rent. This cash flow gives families the freedom to know their loved one is getting the care they need while they sell a home or secure other funding on their own timeline.

How fast are the funds available?

 Bridge loans have an expedited approval process compared to other types of loans. In some cases, loans may be authorized and a line of credit available within just 24 hours.

How much does it cost?

Senior living bridge loans typically have an interest rate slightly higher than a conventional mortgage, which in an era of rising interest rates doesn’t come cheap. Some bridge loans also have origination fees and penalties for repayment, so be sure to understand the terms before choosing a loan.

How can I get a bridge loan for senior living?

A few institutions offer bridge loans specifically for senior care, including Second Act Financial Services. You’ll need to gather details of your assets, income and anticipated move-in, then may apply online.

Contemplating the next chapter in your loved one’s story? Click here to learn more about Bickford Senior Living and to find a branch near you.