• Will the Wisconsin United Methodist Foundation be investing in the Church Loan Program?
Yes. The Board of Directors of the Wisconsin UM Foundation has authorized up
to 100% of the Fixed Income Pooled Fund of Foundation-owned
accounts to be
invested in the Loan Pooled Fund. (This does not affect your individual church
account or agency account invested at the Foundation.)
• Can any Wisconsin Annual Conference United Methodist Congregation apply for a first mortgage loan from the Loan Pooled Fund?
Yes, however to qualify for a mortgage commitment, the congregation must complete a thorough and rigorous application and underwriting process. In general, the church must demonstrate a past record of stewardship and church finances which will allow the church to service this new mortgage debt without jeopardizing the vitality and support of the ongoing church ministry and mission program. In addition, the church must have paid their Conference Apportionments in full for at least the last three complete calendar years.
Does a church have to participate in the Wisconsin UM Foundation Investment Funds in order to qualify for a Church First Mortgage Loan?
No, however, when more churches are applying for mortgages than there are funds available, applications will be prioritized in the following way:
- Considered first: Churches participating in the Wisconsin UM Foundation Investment Funds who are investing all or part of their Fixed Income Pooled Fund in the Loan Pooled Fund.
- Considered next: Churches participating in the Wisconsin UM Foundation Investment Funds.
- Considered next: Wisconsin Conference United Methodist churches that do not participate in the Wisconsin UM Foundation Investment services.
Churches must pass a rigorous application and underwriting process, including approval of the building project(s) by the District Committee on Building and Locations, signed letters of approval by the District Superintendent and Church Pastor, passing of the Wisconsin United Methodist Foundation Cash Flow Model indicating the Church is able to service the mortgage debt without jeopardizing its ongoing program of ministry and mission, and final approval by the Wisconsin United Methodist Foundation Loan Committee.
Stillwaters
United Methodist Church
• What will be the rate of interest charged on these mortgages?
The lowest rate will be offered to churches requesting an Adjustable Rate Mortgage with the interest rate moving in relationship to a defined index. Churches wishing to fix their interest rate for three to ten years will pay a slightly higher rate of interest, as determined by the Wisconsin United Methodist Foundation Loan Committee, which would be adjusted only at the end of the three-year, five-year or ten-year fixed rate period. There would be a minimum floor rate and maximum ceiling rate that could be charged during the term of the mortgage agreement.
• What will happen if a church begins to experience difficulty in keeping current on its mortgage payments?
The Wisconsin UM Foundation will continuously watch the performance of all outstanding mortgages. If we notice that a church is beginning to experience difficulties in their repayment, the Foundation will provide stewardship assistance and guidance to help the church regain sound stewardship patterns. Unlike a commercial lender, the Foundation's primary goal is to help a church grow in ministry and maximize its available resources. We expect every church to successfully repay their church loan. Remember, the available loan funds belong to other churches or to the Foundation. We have a fiduciary responsibility to insure those funds are not exposed to undue risk.
• Can a church refinance an existing mortgage with a new mortgage at the Wisconsin UM Foundation?
Yes, however, the church would have to complete a thorough application and underwriting process similar to other applicants.
• If our church participates in the Loan Pooled Fund, will the entire amount be invested in Church Mortgages?
Only if qualified Church First Mortgages consume all of the available Loan Pooled Funds. Whenever the Loan Pooled Fund exceeds the amount necessary to fund qualified mortgage applications, the remaining funds will be invested in our Fixed Income Pooled Fund.
• If our church participates in the Loan Pooled Fund, how often can we elect to change our participation in the Loan Pooled Fund?
You will have the option of changing your participation level in the Loan Pooled Fund, after a minimum of 12 months has passed from the date of your prior election.