1CR-Construction

Our Loan Products

DevCo offers a standard refinancing loan product as well as a couple other products with unique loan terms, which may provide a better fit for some borrowers.

Fixed Payment Loan

The DevCo fixed payment loan allows the customer to fix its monthly payment amount for a term of years, based on the current interest rate and a 30-year amortization. The interest rate is typically fixed for a term of 5 years with re-finance of the outstanding balance for another term of up to five years.  Other conditions such as a variable rate which may adjust annually, or longer term may be negotiated as long as changes in the interest rate do not lead to the monthly accrual of interest being greater than the original monthly payment amount.  Generally, the payment will remain fixed at the original amount for at least the first five years of the loan.

The maturity date of the loan will be based on a 30-year term, although the loan will likely pay off sooner, unless there is a significant long-term increase in interest rates.

Approval of this product is subject to Loan Committee review and the normal underwriting standards.

Hybrid Re-Finance/Construction Loan

The DevCo hybrid loan allows the customer to apply for a re-finance of their current loan while undertaking an anticipated capital improvement project that requires financing.  Unlike the normal re-financing loan, this product fixes its monthly payment amount as interest only for a term of up to one year for the capital improvements to be covered, based on the current interest rate and a 30-year amortization. The interest rate is typically fixed for that year with a clause allowing for an additional term of 5 years with re-financing of balance.  Renewal loans to complete the payment process in typical five year increments are anticipated.  Other conditions such as a variable rate, which may adjust annually, or longer term may be negotiated as long as changes in the interest rate do not lead to the monthly accrual of interest being greater than the original monthly payment amount.  Generally, the payment will remain fixed at the original amount for at least the first five years of the loan.

The maturity date of the loan will be based on a 30-year term, although the loan will likely pay off sooner, unless there is a significant long-term increase in interest rates.

Approval of this product is subject to Loan Committee review and the normal underwriting standards.

Non-revolving Construction Line of Credit

When a church is doing a construction or remodeling project, DevCo generally approves the loan as a non-revolving line of credit for up to one year – subject to extension or renewal, based on the church’s project timelines.  In such case of a construction loan, the borrower will make interest-only payments until the final loan draw is taken or until a certificate of occupancy has been granted, or until the church completes the final construction.  At the conclusion of the construction period, a fixed payment amount will be calculated based on the actual loan balance and the original interest rate communicated in the loan commitment letter (even if a delayed closing leads to a change in the actual initial interest rate). The 30-year maturity date for the loan will be based on the time of the final loan draw or the loan modification.

 

 

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