In many situations, moving to a senior living community sooner rather than later is essential for the individual’s well-being and overall quality of life. Unfortunately, senior living costs can add up quickly and push you beyond your budget if you don’t have time to prepare.
A bridge loan may be helpful if you or your loved one experiences difficulty securing short-term funds to cover the first several months of rent and fees. Learn more about bridge loans, including the pros and cons, in this blog from Frontida Assisted Living.
What is a bridge loan?
A bridge loan is a short-term loan used until the borrower can access permanent financing or pay an existing obligation. Often, bridge loans are used while you’re waiting for your current home to sell.
A bridge loan can “bridge the gap” when financing is needed but isn’t readily available, like when an older adult prepares to move to a senior living community.
Borrowers must meet specific financial criteria to qualify, which typically includes:
- Excellent credit
- Low debt-to-income (DTI) ratios
- Ample cash savings to make a monthly payment
- Collateral to put up for the loan
Learn about the costs and benefits of assisted living >>
What are the pros and cons of bridge loans?
While bridge loans may be a good option for some, it’s not for everyone. Weigh the pros and cons of the loan and seek the advice of your financial planner if possible.
Pros >>
- Fast application, approval, and funding process
- Beneficial in a “seller’s market” when you’re listing your home for sale
- Allows you to pay for unexpected expenses without delay
- Most don’t have repayment penalties
Cons >>
- High interest rates and origination fees
- Relatively short terms
- Usually backed by collateral, like your home
- Must have significant home equity
Overall, it’s important to remember that a bridge loan is intended to be a short-term financing solution that must be paid back quickly. The loan can help cover entrance fees, monthly costs, and movers. Once your home is sold, you can use the proceeds to pay back the bridge loan and cover your future care expenses.
Most senior living communities, like Frontida Assisted Living, understand that the transition from your home to senior living can be overwhelming at times. Don’t be afraid to lean on senior living experts to guide you in your journey.
Feel at Home at Frontida Assisted Living
Frontida Assisted Living works to build trust in each of our Wisconsin communities every day. Our team is ready to answer your questions, offer support, and provide resources to help you make a confident and informed decision for your future care.
Our compassionate team strives to create a sense of community and purpose for each resident through personalized programming, life-enriching activities, and special events.
Each Frontida community maintains a garden to incorporate seasonal fresh fruit and vegetables into our menus. We encourage healthy choices and well-balanced meals.
Learn how we care for our residents:
- Private suites, bedrooms, and companion rooms
- Fully accessible, private bathrooms
- Spacious living rooms and engaging indoor recreation areas
- Cozy fireplaces and open-plan seating in living spaces
- Beautifully maintained outdoor areas
- Access to a trusted network of physicians, nurses, podiatrists, and therapists
- Delicious, home-cooked meals and snacks
- 24-hour personal care and supervision
- Comfortable spa and salon (in specific locations)
- Dedicated memory care communities
- Specialized behavioral health care communities
- Housekeeping and laundry services
- Individualized care plans
- Life Enrichment Coordinators to plan and schedule meaningful activities for all residents
- Nursing staff to oversee the health and wellness of each resident
We value honesty, trust, and open communication to build relationships with our residents and their loved ones. Together, we form a partnership to ensure your loved one lives a fulfilling life while feeling a sense of belonging and purpose.
When you’re ready, contact any of our 11 Frontida assisted living and memory care communities to gather more information, or to set up a personalized tour. We’re here for you whenever you need us.
We understand that transitioning into assisted care can be an emotional, stressful and often confusing journey. That’s why we’re dedicated to helping you and your family navigate the complex world of care. Download our free “Guide to Funding Senior Living” to learn more.
