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.
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5 follow-up questions
- What 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. It must be owner-occupied, and the site consistently refers to it as the “current primary home” in descriptions and FAQs. No additional details, such as minimum ownership duration, are publicly specified; eligibility depends on factors including creditworthiness, loan-to-value ratio, and approval. - Are there any exceptions or special cases where a Bridge Loan could be used for a second home, vacation property, or investment property?
No exceptions are mentioned. Bridge Loans are available only for primary (owner-occupied) residences. This restriction appears repeatedly in their FAQs and home equity loan sections (e.g., “No. Bridge Loans are available for primary (owner-occupied) residences only.”). Other home equity products (like fixed-term loans or HELOCs) may be available for second homes or investment properties but not Bridge Loans. - If a Bridge Loan isn’t available for non-primary residences, what other home equity options does People Driven Credit Union offer for purchasing a second home or investment property?
For second homes or investment properties, they offer Fixed Term Home Equity Loans and Home Equity Lines of Credit (HELOCs), which can be used on primary residences, second homes, or rental/investment properties (subject to good credit, reasonable loan-to-value ratio, and approval). These provide access to equity at competitive rates for various purposes, including potentially supporting a purchase. Rates for second homes add 2% to the base fixed-term home equity rates. Contact a Home Equity Specialist for specifics, as Bridge Loans are not an option here. - What are the key terms of a Bridge Loan for a primary residence, like the typical length, interest rate structure, or repayment requirements?
- Type: Short-term fixed-rate balloon loan.
- Term/Length: 6-month term.
- Payments: Monthly payments are interest-only or calculated on a 240-month amortization schedule (with the remaining balance due as a single balloon payment).
- Purpose: Taps equity in your current primary home to fund the down payment and costs on your next home.
- Payoff: Balloon payoff when your current home sells (or at maturity if unsold).
- Rates: Not listed publicly in detail; Bridge Loans add 2% to base fixed-term home equity rates (rates vary by creditworthiness and are subject to change).
It’s designed specifically to “bridge the gap” between buying and selling, with a balloon payoff at sale.
- Can I use a Bridge Loan even if I’m buying a new-construction home or if I don’t plan to sell my current home right away?
Yes, often for new-construction homes, it’s a common use case to stay in your current home while the new build completes, then move once. However, it depends on the timeline: the new home must be scheduled to close within the 6-month term. If the build timeline is longer, a Bridge Loan typically isn’t suitable, and alternatives (like construction financing) may be recommended. The site notes that their team can discuss options. If you don’t plan to sell right away, the balloon payoff still comes due at maturity (6 months), so contact a specialist to explore feasibility or extensions/options if delayed.
