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Senior Care Bridge Loans and Paying for Long Term Care
| Definition |
Qualifications |
Costs |
| Pros & Cons |
Benefit Types & Limits |
How to Apply |
| Overview of Senior Care Bridge Loans | ||
At the time of writing, there was only one loan available that was specifically designed as a Senior Care Bridge Loan. The “Elderlife Line of Credit” product from Elderlife Financial is specifically designed to help seniors and their families with the cost of assisted living or skilled nursing. It is a loan structured as a line of credit that can be used to pay for the cost of assisted living or skilled nursing care on a short term basis. Payments are made directly from the loan account to the care providers. At no point do the borrowers take possession of the funds.
This loan is unique in that multiple family member or friends can share the cost of paying for an elderly individual’s care. Up to 6 co-borrowers are permitted. The loan is unsecured and is typically made for smaller amounts on a short term basis. The term of the loan is 5 years and the interest rate is tied to the prime rate.
An Elderlife Line of Credit is a good option only for seniors that require temporary financial assistance to pay for assisted living or skilled nursing move-in or monthly fees. Funds go directly from the lender to the medical care provider so they cannot be used for any other purpose.
Often the need for a senior to enter residential care comes unexpectedly and the family may not have had the opportunity to arrange the financial resources. This loan product can serve as a bridge until more permanent financial resources can be arranged. For example, assisted living move-in costs are high, so a family might borrow $30,000 for 6 months to pay for the move in and monthly fees until they are able to sell the senior’s home. Having sold the home they then re-pay the loan and can afford to continue paying the medical provider’s monthly fees.
Another situation is if a senior’s life expectancy is very short, a family might be required to pay for skilled nursing for 6 months. Skilled nursing is very expensive, but if the cost of 6 months of skilled nursing can be spread over a 5 year loan period, it becomes affordable.
The loan also has an extremely fast approval process to accommodate for dramatic changes in senior’s health situations.
The loan is also unsecured, meaning there is not a house or car for the lender to take if payments are not made. Therefore a fairly strong credit score is required. However, the loan is also designed to allow for multiple co-borrowers to share the cost of paying for the senior’s care. Having multiple co-borrowers lessens the need for a strong credit score from any one borrower. Since there are multiple individuals to share the risk; the more co-borrowers, the easier it is to get the loan.
For families whose alternative source to paying for senior care is a credit card cash advance, this is a more economic option.
Be Aware That:
This senior care bridge loan is only for seniors in or entering assisted living communities.
Senior Care Bridge Loans are Also Known As:
-Elderlife Access Loan
Age Requirements
Since the loan is typically given to the family and not the individual in need of care, age is not a factor in eligibility for an Elderlife Line of Credit.
Disabilities / Health Requirements
The health of the senior plays an indirect role in eligibility. Loans are only available for those seniors in or entering assisted living / skilled nursing. Therefore while health is not a qualifier on the application, a senior’s health must require them to enter into assisted living community.
Family Status
The marital or family status of the senior or the borrowers are not a factor in determining loan approval.
Financial Status Requirements
The financial status of the senior is not relevant; instead the status of the borrowers is the focus.
The loan is unsecured, meaning there is not a house or car for the lender to take if payments are not made. Therefore a fairly strong credit score is required. However, the loan is also designed to allow for multiple co-borrowers to share the cost of paying for the senior’s care. This actually lessens the need for a strong credit score from any one borrower since there are multiple individuals to share the risk. The more individuals that are co-borrowers the easier it is to get the loan.
Veteran Status Requirements
The veteran status of the senior or the borrowers are not a factor in determining loan approval for Elderlife Lines of Credit.
Geographic Requirements
The geographic residence of the senior does not play a role in eligibility; however Elderlife Financial does not offer the loan in Hawaii or Alaska at this time.
Types of Benefit Payout
Elderlife Financial’s Lines of Credit pays directly to the medical providers, not to the families.
Restrictions on How Payout Can be Used
The loan can only be used to pay the cost of assisted living or skilled nursing. Payments are made directly from the lender to the medical provider.
Benefits Amounts & Limits
Elderlife Financial offers a line of credit of up to $50,000.
Time to Receive Benefits
The Elderlife Line of Credit is specifically designed to have a very fast approval process. It is possible to have the line of credit open within 3 days of application.
This Source Can Help For
The Elderlife Financial’s Line of Credit proceeds can be applied towards assisted living and skilled nursing. Alzheimer's and dementia care are included provided their are given in a residential environment.
- There is no application fee associated with Elderlife Financial loan.
- The interest rate for the loan is tied to the prime rate; this is lower than a credit card cash advance but higher than a home equity line of credit. Click here for today’s prime rate.
- The loan can be pre-paid at any time without a penalty.
One can apply on Elderlife Financial's website.
