FAQ Category: Home Equity Bridge Loan
Is it available for second homes or investment properties?
No. Bridge Loans are available only for primary (owner-occupied) residences. Have more questions about a Bridge Loan? Start your Bridge Loan conversation with a Home Equity Specialist at People Driven Credit Union. Connect with a Home Equity...
Continue ReadingIf I get a bridge loan, Do I have to finance the finial purchase through PDCU?
If you are using a People Driven Credit Union Bridge loan, you must allow People Driven to finance your new home as well. If you’re purchasing without financing, ask us how a bridge loan may fit your plan. Have more questions about a Bridge Loan?...
Continue ReadingWhat exactly is a Bridge Loan?
A short-term fixed-rate balloon loan that uses the equity in your current primary home to help fund your next home purchase. Payments are calculated on a 240-month amortization schedule, and the remaining balance is due when your current home sells or at...
Continue ReadingDo I make two payments?
Potentially, yes. You may have a bridge loan payment and a new mortgage (or rent) payment at the same time until your current home sells and the bridge loan is paid off. Have more questions about a Bridge Loan? Start your Bridge Loan conversation with...
Continue ReadingHow long is the term?
6 months. The remaining balance is due when your current home sells or at maturity. Have more questions about a Bridge Loan? Start your Bridge Loan conversation with Home Equity Specialist at People Driven Credit Union. Connect with a Home Equity...
Continue ReadingIs the rate higher than a regular mortgage?
Usually, yes—because it’s short-term financing. Most members carry the bridge only for a few months, trading a slightly higher short-term cost for a stronger purchase offer and a single move. Have more questions about a Bridge Loan? Start your...
Continue ReadingWhat if my home doesn’t sell before the bridge loan matures?
We set expectations up front with a realistic timeline and listing plan. If the sale is delayed, contact us immediately to discuss options. The remaining balance is due at maturity. Have more questions about a Bridge Loan? Start your Bridge Loan...
Continue ReadingCan I use a Bridge Loan with a new-construction home?
Sometimes. A bridge loan may be an option when your new-construction home is scheduled to close within the 6-month term. If the timeline is longer, a bridge loan typically isn’t the right tool—our team can walk through alternatives (including...
Continue ReadingHow much can I borrow?
It depends on your equity, credit, and program limits (like CLTV and DTI). We’ll review your numbers and give you a personalized estimate. Have more questions about a Bridge Loan? Start your Bridge Loan conversation with Home Equity Specialist at...
Continue ReadingWhat fees should I expect?
You’ll pay standard third-party closing costs and an origination fee if applicable to your program. We’ll disclose all estimated costs before you proceed. Have more questions about a Bridge Loan? Start your Bridge Loan conversation with Home...
Continue ReadingHow is a Bridge Loan different from a HELOC?
A HELOC is a revolving line you can draw on over time (often variable rate). A Bridge Loan is a one-time, short-term loan specifically to span the gap between selling and buying, with a balloon payoff at sale. Have more questions about a Bridge Loan?...
Continue ReadingIs this a good fit if I need the lowest possible cost?
If cost is the only priority and you can comfortably sell first, that may be cheaper. A Bridge Loan prioritizes speed and certainty—winning the home you want and moving once. Have more questions about a Bridge Loan? Start your Bridge Loan...
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