Questions for our Loan & Accounting Specialist
February 13, 2019 / Updated August 5, 2019
The Iowa United Methodist Foundation’s Loan and Accounting Specialist, Cassie Parks, answers nine frequently asked questions about our Iowa United Methodist Church Building Fund Trust loan program.
1. What types of loans, terms, and rates does the Foundation offer?
We offer construction loans with terms up to one year. Short-term, unsecured loans starting at $5,000 and less than $50,000 are offered upon board approval. We also offer permanent loans with an amortization of up to 15 years with a five-year rate reset. Call us at 515-974-8927 for more information about our competitive loan rates!
2. What types of projects can our church borrow money for?
We offer loans for a variety of projects ranging from small to big projects such as:
- Construction of a new building
- Purchase of a parsonage or an existing building
- Land acquisitions to expand a church’s ministry
- Renovations to the sanctuary, fellowship hall, nursery, or another church-related building
- Ministry expansions such as a preschool
- Refinancing of an existing institution’s loan
- Multimedia updates such as new lighting, sound systems, or TV’s
- Large/small appliance or technology updates
3. Is there a penalty for prepaying or paying off the loan?
No, there is no penalty for prepayments or early payoff.
4. Is there a balloon payment at some point?
No, we don’t have balloon payments. We adjust the rate every five years to the current rate the Foundation offers at the time over the lifetime of the 15 year loan.
5. Does the Foundation charge points on the loan?
No we do not charge points. There are just standard closing costs, which are generally lower than those of a financial institute.
6. What sets the Foundation apart from other lending institutions?
- Our loans are generally less restrictive with lower costs than other lenders.
- We make loans only to churches and church-related entities.
- We are more flexible with terms.
- We understand church needs and finances better.
7. Does the Foundation offer support after a loan closes?
We are generally available to help with the needs within our realm. We have many years of experience between our staff to help you out.
8. Where does the Foundation get the money to lend to churches?
Our Building Fund Trust Certificate Program, which offers 1-, 3-, and 5-year fixed rate investments, provides funding for loans to churches. Check out our website to learn more about our BFT certificates.
9. How do I learn more about the Foundation’s loan program?
Contact Cassie Parks at [email protected] or 515-974-8929. You can also visit our website to learn more about the loan program.