They aren’t a permanent funding source, they are designed to remove any financial delay in getting you or your senior the care needed. If you are planning on selling a home to finance senior care, a bridge loan can relieve the pressure of selling and help you get the price you deserve. Waiting for benefits to kick in from VA or Medicaid? You don’t need to wait for the care you need. In the case of a sudden decline in health or faculties, a bridge loan may save a life.
The main drawback of a bridge loan is the high-interest rate, often somewhere between 6% and 16%. This is higher than a home equity loan for example, but compared to a credit card or personal loan it’s relatively low. Some care providers will cover the interest on a bridge loan, so make sure to check!