Toot the horn! New Loan!
Hey, y'all! We just got another, better loan!
My off grid prefabulous house kit is saved! (Honestly, it was never in danger and you know I don't want a big ole loan anyway; I just was in shock that we'd have to go from threadbare to... Every. Dollar. Counts.)
We had originally decided to take out an equity line of credit over a construction loan because of the green building elements we aim to do. I mean, this is Virginia, the state that does not give tax credits for solar. Do I honestly expect my local banks to understand rainwater collection systems, much less composting toilets? Er, nope.
We had used Colonial Farm Credit to purchase our land, and when, on Monday, USAA reduced our loan, decided to approach them for options. Well, thanks to our good credit, we were able to get another loan.
Lemme tell you a little about Colonial Farm Credit. When we purchased our land, we paid our usual mortgage check to them, la la la, not thinking anything about it... Then, in January, we got a letter.
Colonial Farm Credit is not a bank, but a co-operative, part of the Farm Credit System which was founded in 1916.
"Our cooperative structure means that a portion of the profits generated from our lending activity is returned to our borrowers in the form of patronage refunds. These patronage refunds are based on the proportion of interest earned on an individual loan. This significantly reduces the cost of borrowing for our customers."As a member, you pay above-market interest rates (currently 7.5%). At the end of the year, they disburse the profit.
And what do you know, but attached to that letter was...
A check for $1,400!!!
And the next year? More!
How can you not love a co-operative that benefits the people?!?
From their website:
"We put our profits in YOUR pockets!"
As a Farm Credit borrower, you become a member of a cooperative - a business that is owned and controlled by the people using their services. As a cooperative, we can return the profits of our successful operations to our members - the owners - in the form of a patronage refund. This year we are returning over $6.9 million to our customers!
These dividends are based on the amount of business that you do with the cooperative and can significantly reduce your cost of borrowing money.
At the end of each fiscal year, Farm Credit determines its income and expenses. Income remaining after all expenses are deducted (net income) can then be distributed to members in accordance with the bylaws of the company.
Your board can elect to; retain all of the net income to strengthen our capital position, or distribute some or all of our net income by declaring a patronage refund."
Oh Colonial Farm Credit, I love you.