Many families unfortunately forget to ever consider elderlife financial services. This is a common occurrence and certainly not an anomaly if you find yourself in this bind. There are a multitude of reasons to possibly consider an elderlife bridge loan for assisted living – downsizing, using the funds for home improvement in order to sell and move into assisted living, or just to secure a new and smaller home. But how exactly can bridge loans help for assisted living communities?
A senior living bridge loan is a bridging loan that is structured as a line of credit where multiple parties can take on paying the cost of the loan and interest for an elderly person in need. These bridge loans can be used for entering assisted living communities, selling a home, or as an alternative to a mortgage.
Are you currently interested in an assisted living bridge loan but have questions on the process? If so, you are not alone in seeking information on this specialised type of bridge loan.
In this article, we are going to look at this type of bridge loan to better determine if this line of credit is right for you. There are many different ways this loan can be used, so we will cover all aspects in detail.
Why use a bridging loan to cover elderly care home costs?
Second act financial services are not only concerned with assisted living in care homes, but can also cover funds needed to prepare a home for senior living or in costs associated with downsizing.
Retiring can already be a bit of a financial strain, so it is natural that a person considering senior living should have no interest at all in something like a mortgage or even personal loans to pay for various forms of assisted living.
Other costs must be prioritised first, and financial options may become limited for those who have retired. All of these are great reasons to consider using a bridging loan to help pay for senior housing, senior care, or even a reverse mortgage.
This may be the only option out there
As mentioned, bridge loans work well due to reasonable eligibility criteria such as a low waiting period, the absence of prepayment penalties, a less strict consideration of other debts, and much more.
Additionally, assisted living fees in an assisted living community can soon add up, especially if additional ongoing care costs are required. Therefore, a bridge loan line of credit can be used to get past these initial roadblocks and is perfect because more than one person can help in paying back the loan if need be.
Will bridging loans cover all of the care home assisted living facility fees?
Yes, this type of bridge loan can certainly be used to cover assisted living community fees.
Property can be a fickle market for sure, so there may be stall in time where a person needing to move into an assisted facility as soon as possible may find that they are unable too, due to their own home not selling as quickly.
This is a perfect example of where bridge loans come into focus. A bridge loan can be used to immediately address the need of a senior being able to acquire the funds to afford the fees to move into a care home.
This also helps avoid the all to often inconvenience of a huge lump sum payment whereas only interest only payments will need to be handled until the end of the loan term arrives.
The monthly payments as an interest only monthly payment are far better to deal with than a lump sum, which you may encounter with personal loans of a high magnitude.
The time and flexibility needed for seniors is assured and an interest only payment is standard for bridge loans cost analysis, making this a perfect line of credit.
Who can apply for a care home bridge loan?
Typically speaking, any senior who is in need of a bridge loan can apply, but the eligibility criteria must be met to ensure that a care home is willing to accept a client. This will be needed as proof during the application process.
At Bridging Options we only work with lenders who are willing to take on pensioners or seniors of any age bracket granted that they can prove their preliminary acceptance into a care home. This means that you do not have to worry about being 65 or any other age threshold to qualify.
Some things to keep in mind in terms of application thresholds to meet:
- Bridge loans are short term loan options and can only be covered for a period of 12 months
- We can work with you to understand the financial overview of the home in question to determine if the home can sell on time
- Credit report history is not really a factor you need to concern yourself with
- A bridge loan does have a higher interest rate and particularly home care bridging loans, due to lenders wanting to avoid possible negative risk assessments
- Your method of repaying the loan and a firm plan will be the strongest indicators of your bridge loan receiving approval
- A bridge loan can be either a first or second charge loan depending on what works best for you
- Multiple family members can help in the application for a care home bridge loan
Can I apply on behalf of someone else for bridge loans?
As mentioned, at least one homeowner and multiple family members or individuals can apply for and bare the costs of a senior’s home care bridge loan.
The individual needing the home care loan for assisted living will need to be present to go through the application process as well.
Finding the best care home bridging loan for you
At Bridging Options, we strive to provide the best home care bridging loan that is tailored to your individual needs and particular circumstances.
We know that the housing market can be an up and down phenomenon, so we look for the best options available based on your home equity line and assurance of the needs to cover at least the first year of associated home care fees, in addition to additional costs that are needed to transition to a home care facility.
Moving into a retirement community should be a worthwhile transition, and therefore, finding the best bridging loan for you to ensure this happens will become out top priority.
The application process is quick and easy and we know full well that you may need to move fast to maintain your new position in an assisted care facility. We also offer financial advice to both you and your family members to ensure that everything is in order as you transition to a new opportunity.
There is generally a fast approval process since you do not have to concern yourself with wondering if your credit score will meet some arbitrary qualification. Monthly interest fees without the need of worrying about a quick repayment of the loan amount can also help to ease some of the worries concerning the process.
Is there an age limit on bridging loans?
Generally speaking, anybody over the age of 18 is eligible to apply for a bridging loan. If there are unique circumstances in place, someone like a power of attorney can also apply on a person’s behalf if need be.
For seniors needing a home care/assisted living bridge loan, there is also no age limit but you will be expected to show acceptance or interest in a home care facility in order for the bridge loan to be properly calculated.
Are there other funds available for retirement communities?
There are a wide range of options available if you do not want to consider a bridging loan to help fast track the process of moving into a retirement community.
Families can consider borrowing against a pension plan if they choose to go down this road or there is also unsecured lending in the form of personal loans that can also be considered. These types of loans, however, do not move as quick as bridging loans and do not have many of the attractive assets of bridge loans such as leniency towards less than stellar credit reports etc.
The interest rates are also higher over the long term instead of the short term which is what you can expect with a bridging loan.
Remortgaging is also something that many consider and in many ways this can be an okay route to take, granted a person does not mind adding to the overall financial life of the traditional mortgage that they already have on their home.
How bridging options can help
At Bridging Options, we consistently strive to improve our specialisation across a wide range of bridging loans needed for a large array of life circumstances.
Assisted living bridge loans are crucially important to seniors who need to either move into a home care facility or raise funds to downsize into a smaller home or even better equip their current home for senior living.
What we can offer is a firm commitment to keep your risks at an absolute minimum to make this transition as smooth a process as possible for you and your loved ones. Contact us today to discuss all the available options available to you as you transition to senior living.
You can fill out this quick contact form or call us at 03300 562173.