01 Mar Bridge Loan Designed to Help Cash Poor Medicaid and VA Applicants
Often disability occurs suddenly at a time when people have limited cash resources to pay for care costs. So, even if the person might be eligible for public benefits, it often takes many months or longer for eligibility to be granted. Caregivers often do not want to wait for governmental benefits to be paid (i.e., assisted living facilities and nursing homes often want to be paid prior to Medicaid or VA approval). As a result, at least one company is now offering a line of credit (a bridge loan) specifically designed for those requiring home care, assisted living, Alzheimer’s care or skilled nursing care.
The loan is unique in that multiple family members (up to 6) could be co-borrowers. Since there is more than one borrower, this actually lessens a strong credit score from one borrower, and the financial status and age (unlike a reverse mortgage) of the individual in need of care is not relevant. At no point do the borrowers take possession of the funds – it is paid directly to the health care provider.