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? Start your Bridge Loan conversation with a Home Equity Specialist at People Driven Credit Union.
Connect with a Home Equity Specialist
Here are 5 more relevant follow-up questions:
- What happens if I already have a mortgage pre-approval or commitment from another lender for the new home, can I still use a People Driven Credit Union Bridge Loan?
Answer from the site: No, if you are financing the purchase of your next home, the financing must be through People Driven Credit Union (as explicitly stated in the Fixed Term Home Equity Loans section, which covers Bridge Loans as a type of fixed-term product). The Bridge Loan policy requires PDCU to handle new-home financing when a mortgage is involved. If you have pre-approval elsewhere, you’d need to switch or discuss alternatives with a specialist, contact one to explore options. - If I’m paying cash for the new home (no mortgage needed), how exactly would a Bridge Loan work in my situation, and what are the benefits compared to other options?
Answer from the site: For cash purchases (purchasing without financing), a Bridge Loan can still fit your plan by tapping equity in your current primary home to fund the cash down payment or full purchase costs on the next home, allowing a stronger, non-contingent offer. It’s a short-term fixed-rate balloon loan (typically 6 months) with interest-only or amortized payments, and balloon payoff ideally at sale of your current home. Benefits include bridging the gap without selling first, avoiding two moves, and making competitive offers. The site notes to ask how it fits (no specific cash-only restrictions beyond the general terms), and it’s positioned as a tool for buy-before-sell scenarios. Compare to HELOCs (revolving/variable) or fixed home equity loans for longer-term needs, specialists can explain tailored fit. - Does the requirement to finance the new home through People Driven Credit Union apply only if I’m getting a mortgage, or are there other scenarios where it kicks in (like using PDCU for closing costs only)?
Answer from the site: The requirement applies specifically “if you are financing the purchase of your next home” meaning when a mortgage/financing is involved for the new home, it must be through PDCU. For pure cash purchases (no financing/mortgage), the FAQ explicitly carves out an exception: “If you’re purchasing without financing, ask us how a bridge loan may fit your plan.” No mention of it applying to minor aspects like closing costs alone; the focus is on the primary purchase financing. Bridge Loans are for primary residences only, with equity used to fund the next purchase. - If my new home purchase is delayed and I’ve financed it through People Driven Credit Union (to meet the Bridge Loan requirement), what options exist for handling the Bridge Loan’s balloon payment or extension?
Answer from the site: Bridge Loans are short-term (6-month term) fixed-rate balloon loans, with the remaining balance due at maturity (often tied to sale of current home). If delayed and your home doesn’t sell before maturity, contact PDCU immediately to discuss options, the site emphasizes setting realistic timelines upfront and notes the balance is due at maturity, but specialists can explore extensions or alternatives (e.g., refinancing or other home equity products). Since the new home financing is through PDCU in these cases, it may streamline discussions. The FAQ on unsold homes advises reaching out right away. - Are there any advantages, like better rates, discounts, or faster processing, when I use People Driven Credit Union for both the Bridge Loan and the new home mortgage (as required)?
Answer from the site: The site doesn’t publicly list specific incentives like rate discounts or streamlined processing for bundling Bridge Loan + new mortgage (though general loan rate discounts, e.g., 0.25% for autopay, apply across products). However, requiring PDCU for the new home financing implies integrated handling, potentially easier coordination, single-point servicing, and alignment on timelines/approvals. Bridge Loans add premiums (e.g., rates often 2% above base fixed home equity rates in related contexts), but bundling supports the “bridge the gap” goal with one lender. The emphasis is on specialist consultation for personalized terms, benefits, and how it fits your plan.
