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...
Continue ReadingWhat does Loan-to-Value Ratio (LTV) mean?
Loan-to-Value Ratio (LTV) is a measure of the amount of the loan compared to the appraised value of the property. It is calculated by dividing the loan amount by the appraised value or purchase price of the property, whichever is lower, and is...
Continue ReadingWhat are the eligibility requirements?
Eligibility requirements for home equity loans include having sufficient home equity, a good credit score, a stable income, and a favorable debt-to-income...
Continue ReadingHow is the interest on a Home Equity Loan calculated?
Interest on a Fixed Term Home Equity Loan is typically calculated as a fixed percentage of the loan amount, and it remains constant throughout the life of the...
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