This blog was originally published on 5/30/2023 and updated on 9/23/2025.
Bridge loans can offer you the opportunity to act quickly if you’ve made the decision to move yourself or a loved one to senior living, even if you have a shortage of cash flow. When is a bridge loan a good choice? Once you understand how senior bridge loans work and the benefits of a bridge loan, you’ll see what a difference they can make. What are bridge loans and how do bridge loans work?
A bridge loan is a short-term loan that bridges the gap between lapses in funding. Most loans are provided as a line of credit but can be provided as a lump sum.
Bridge financing can provide a quick solution to those who need a source of capital during a transitional period, such as before you are able to sell your home and use the proceeds for a move to senior living. Instead, with a bridge loan, a bank or finance company may loan a homeowner money on an asset (usually the home), and the loan is then paid off once the asset is sold or liquidated.
Simplicity: one of the many reasons why seniors choose bridge loans.
Rather than worry about selling a home in time or when funds may become available from the sale or stock or the maturity of an annuity, many people appreciate the simplicity and benefits of a bridge loan.
In fact, you could say understanding how bridge loans give you a faster path to senior living is as easy as ABC.
A = Access to funds (sometimes within 24 hours)
With bridge loans, you are not held back by gaps in funding. When is a bridge loan a good choice?
- Before VA benefits begin. Families may have to wait a year or more to begin receiving benefits.
- During a long-term care insurance policy waiting period. These benefits may not begin for a year.
- During the time it takes to sell a house and receive the proceeds. It can take months to downsize, make repairs and upgrades, put your home on the market, get the best price, and close the sale.
- Before an annuity matures.
- Before other assets or investments can be liquidated.
- As an alternative to a reverse mortgage. A reverse mortgage is a good option for financing long-term care if at least one homeowner remains in the home. But should both owners of the home need to move into assisted living, a reverse mortgage is not possible. In addition, a reverse mortgage is geared toward a longer time period, whereas a bridge loan is designed to cover short-term needs.
B = Benefits of a bridge loan
- You gain time to time to sell your home on your own terms. It’s also easier to stage, show, and sell your home if you are not living in it.
- With bridge financing, you can pay for senior housing now, while you wait for benefits to arrive. This can be especially helpful when the need for supportive care is urgent, or you have decided upon a particular senior living community and your preferred residence is available.
- If you will be residing in a senior living community in another town, a bridge loan can help with the costs of moving.
- Many communities may offer their own promotions that could help offset financing costs.
- The approval process for a short-term bridge loan can be as speedy as 24 hours.Because this is a Home Equity Line of Credit (HELOC) bridge loan, the interest and fees may be tax deductible. Consult your tax advisor or CPA for details.
C = Control: you don’t have to wait to enjoy the benefits of senior living.
There’s a lot to be said about giving yourself, or a loved one, a carefree, extraordinary lifestyle—with a bridge loan; you don’t have to put it off for months or longer.
Related: 3 Reasons Why Waiting Too Long to Move to Senior Living Can Limit Your Choices.
Considerations to keep in mind with bridge loans:
- You must have equity in your home to quality for a bridge loan.
- Applicants may have a one-time low origination fee that will be added to the loan.
- Bridge loans often come with a higher interest rate.
- Qualifying for bridge loans requires excellent credit, a low debt-to-income ratio, ample cash savings for making monthly payments, and collateral to put up for the loan. They will verify the borrower’s income through W2s, tax returns, and pay stubs and ensure their debt-to-income ratio does not exceed their limits. Most borrowers need a high credit score to qualify for a bridge loan.
- You will have two monthly payments to make.
- As a short-term loan, a bridge loan must be repaid quickly.
- If you cannot repay the loan, you risk losing your home.
When is a bridge loan a good choice? When it can free you to join the St. Mark Village family sooner!
Everything you want and need for an extraordinary lifestyle is right here in our beautiful community. Don’t wait any longer to make it yours!
Choosing St. Mark Village gives you access to a full continuum of care: independent living, assisted living, memory care, skilled nursing, and in-patient rehabilitation. No matter where you reside in our community, you benefit from the support, focus on total wellness, and strong social network that can lead to increased longevity. Not to mention an impressive array of amenities and services that makes every day easier.
Plus, you have a plan that offers seamless access to future care options with the promise of Life Care something both you and your family can appreciate.
For details on how you can finance your senior living community entrance fee or monthly service fees, visit our funding partner, Second Act Financial, here.
Start enjoying a whole new approach to retirement. Download our free guide, Funding Senior Care & Housing or contact us. We’d love to hear from you.
