While the goal of living in a senior living community is common among older crowds, getting there is another issue. There can be financial obstacles future residents must pass to reach their goals.
How can senior living communities and future residents all balance this complicated situation to ensure a happy, healthy future in the right community? One answer may be bridge loans.
Moving is Costly and Time-Consuming. Bridge Loans Can Alleviate the Stress.
Getting older is not necessarily getting easier for a lot of people. Many seniors sell their homes to cover retirement community costs. The stress of moving into a senior living community can be challenging, traumatic, and costly.
Homeownership Rates Amongst Those Aged 65 and Over
It can be even harder for older people, who may have lived in the home for longer periods of time. The process can be emotional. When selling quickly in order to pay a deposit and secure future residency, it’s no wonder people get overwhelmed.
Fortunately, there are solutions. Many seniors are homeowners, which can help offset potential expenses. In fact, for the third quarter in 2021, homeownership rates were highest among those aged 65 an over at a whopping 79.7%.
Seniors sell their homes and move into their desired community faster through the help of a bridge loan.
What is a Bridge Loan and How Does It Work?
A bridge loan is a short-term financing loan that is intended to be used during a period of transition. This could be helpful to seniors looking to move into a senior living community and not become overwhelmed with moving expenses.
Bridge loans are secured using the current home as collateral, similar to mortgages and home equity loans. However, bridge loans are not designed to substitute a mortgage. Most loans must be repaid within 6 months to three years.
Bridge Loans Can Create the Opportunity to Move to a Senior Living Community
Seniors are careful about their money and concerned about making sure they can enjoy the remainder of their lives. What better way to help encourage residency than directing prospects towards bridge loans?
Bridge loans can help your future residents prepare and plan more effectively, especially in situations where their funds are occupied. Simplify moving, reduce money stress, and help guide them to your senior living community. It’s a win-win for everyone.
How can you help guide your prospects to these solutions? Consider using your webinars and dinner seminars to showcase information about bridge loans. In this instance, a financial advisor or bank representative could provide answers to unsure prospects.
What are the Benefits of a Bridge Loan for Seniors?
In short? Peace of mind. Less stress and anxiety. A timesaving and cost-effective way to get a prospective resident from their home, and into your senior living community.
“Bridge loans can take the stress immediately off the family, helping more seniors move into our communities faster while they take the time they need to sell their home when they are emotionally ready to go,” says Elias Papasavvas, CEO of Second Act Financial Services, a senior-focused division of Ohio-based Liberty Savings Bank.
A bridge loan affords seniors to use the equity in their home to fund the retirement community monthly fees. This loan also provides these homeowners with the convenience of selling at their own pace.
Both Seniors and Senior Living Communities Reap the Rewards with Bridge Loans
Potential residents may feel hesitant towards selling their home and making the move to a senior living community. “Traditional banks are not built to serve the unique service needs of a senior and their family seeking senior living.” says Elias. In addition, the urgency of selling their home and all the work it entails may make some seniors hesitant.
Help take the stress and uncertainty off your prospects by recommending bridge loans. Remove any impediment in their way to making the decision to your community. Ultimately, this may effectively accelerate the process and boost residency.
Ready to Grow Your Senior Living Community?
Times are tough and consumers need a senior living community and organization they can trust and grow with. The LeadingResponse team understands the challenges you’re facing, and we help you with solutions that can help your community and your future prospects. For more insight on increasing traffic, growing your organization, and building your brand, contact our team of experts.