Standard terms-01-01

Standard terms

Below are DevCo’s standard loan terms. For current interest rates, please contact us.

Term/Maturity: Loans carry up to a 30-year amortization. The term for a standard loan is typically five years – though the Loan Committee will consider other options and terms for maturity with a balloon payment or re-finance period.

Interest Rate: The rate is typically fixed for the term of the loan, being based on our internal cost of funds.  We use a national index such as the “Prime Lending Rate” as a general guide but can create unique plans to meet the risk ratings for each church project. After a fixed rate period ends, the interest rate is subject to adjustment depending on current market conditions

Self-Funding Rate Discount: Your ministry can receive a discounted loan rate through DevCo’s self-funding program, which is explained here.

Collateral: Loans are secured by a first lien deed of trust on the subject property and/or other collateral.  Currently our overall collateral target is that the loan portfolio not exceed 40% of the collateral value of the real property behind the entire portfolio. We do not accept loans that would exceed 80% of the collateral value of the real property.  No loans may be unsecured.

Prepayment Penalty: DevCo does not charge a prepayment penalty for paying off a loan early.

 

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