FAQ Category: Home Equity Bridge Loan
If my new home purchase is delayed, what options are available for handling the Bridge Loan’s balloon payment or extension?
Because a Bridge Loan is a short-term, fixed-rate balloon loan, the remaining balance is due at maturity if your current home has not sold yet. If your purchase or sale timeline changes, the best step is to contact People Driven Credit Union as early as possible. Extension options are not automatic and would depend on your individual situation, current credit ...
Continue ReadingIf I’m paying cash for the new home and do not need a mortgage, how exactly would a Bridge Loan work?
A Bridge Loan can still help if you are paying cash for your new home. Instead of using it alongside a new mortgage, the Bridge Loan uses the equity in your current home to provide funds for your purchase. That can help you buy the new home before your current one sells. You would make monthly payments during the 6-month ...
Continue ReadingWhat qualifies as a primary (owner-occupied) residence for a Bridge Loan?
A primary (owner-occupied) residence is your current home where you live as your main residence. The Bridge Loan uses the equity in your “current primary home” to fund the next home purchase. Have more questions about bridge loans? Connect with a Home Equity Specialist at People Driven Credit Union to get your questions answered.
Continue ReadingIs a bridge loan available for second homes or investment properties?
No. Our Bridge Loan is not available for second homes or investment properties. If you are looking to use equity from another property to help with your next purchase, a HELOC or Fixed Term Home Equity Loan may be a better fit. These options can give you access to funds without using our Bridge Loan program. To talk through your ...
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 bridge loans? Connect with a Home Equity Specialist at People Driven Credit Union to get your questions answered.
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 the end of the term. Have more questions about a Bridge Loan? Start your Bridge Loan conversation with ...
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 Home Equity Specialist at People Driven Credit Union. Connect with a Home Equity Specialist
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 Specialist
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 Bridge Loan conversation with Home Equity Specialist at People Driven Credit Union. Connect with a Home Equity Specialist
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 conversation with Home Equity Specialist at People Driven Credit Union. Connect with a Home Equity Specialist
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 construction financing options, if applicable). Have more questions about a Bridge Loan? Start your Bridge Loan conversation with Home Equity Specialist ...
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 People Driven Credit Union. Connect with a Home Equity Specialist
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 Equity Specialist at People Driven Credit Union. Connect with a Home Equity Specialist
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? Start your Bridge Loan conversation with Home Equity Specialist at People Driven Credit Union. Connect ...
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 conversation with Home Equity Specialist at People Driven Credit Union. Connect with a Home Equity Specialist
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