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Loan Interest Rate Buydown Program

This Special Program Can Save Your Church Money


If your church is considering taking out a loan for major upgrades or other construction projects, this new program could help you minimize interest and invest more in your ministries.

For a limited time, DevCo is offering a special program to Virginia United Methodist churches who will be securing a loan with us – the opportunity to buy down the interest rate for their loan. Each church considering this option is encouraged to liaise with their district superintendent to determine whether their district can support them by contributing to the one-time interest buydown payment.

Through this program, your district can potentially pay for points to buy down the interest rate of your church’s loan with DevCo. Each mortgage point costs 1% of your loan amount and lowers the interest rate of your loan by 0.25%.

The advantages of this program for your church include:

  • Lower mortgage interest rate
  • Lower monthly mortgage payment
  • Cost savings over the life of the loan
  • Your church can invest more in its ministries

If your church is considering taking out a loan for major upgrades or new construction, please contact us at 804.521.1151 or via this contact form.

 

Loan Policy on Interest Rate Buy-Down Program

The borrower will have the option to buy down the interest rate on an amortized loan originated by the fund by buying points at the inception of the loan. The total dollar amount of the interest rate buydown must be consistent with the terms of the buydown period. The buydown period will not be greater than 60 months, the rate reduction will not exceed 1%. Any prepaid interest is nonrefundable.

United Methodists Investing to Impact Virginia

Since 1971, the Virginia United Methodist Foundation (VAUMF) has supported churches and United Methodist organizations within the Virginia Conference — by offering investment opportunities and support for establishing a sound financial foundation. Read more about how the Foundation can help your church here.