When a borrower uses collateral to ensure payback, we classify that loan as a Secured Loan. The collateral may be a home, a vehicle, stocks or even a CD.  DLFCU has many secured loan options available to our members and a variety of loan repayment options.

SHARE SECURED LOANS

Under these Share Secured Loans, DLFCU will lend up to 100% of the balance of a savings, money market or share certificate (CD) account.

Loans secured by shares may be financed up to 5 years while loans secured by CDs are payable upon maturity of the certificate, and may be renewed if the certificate pledged as collateral is also renewed. Single payment loans secured by savings or CDs may be refinanced upon payment of accrued interest. Call a DLFCU Member Service Representative for current rates.

STOCK SECURED LOAN

These secured loans use Dow Chemical stock or Other Publicly Traded Stocks as collateral. Financing limits are based on a percentage of the current market value of the stock as listed on the Stock Exchange at the time of the application.

Stock Secured Loans may be financed up to five years. These loans will be reviewed quarterly to insure adequate protection for the remaining loan balance. Additional collateral may be required if the stock values decline. If a stock pledged as collateral splits, the member will be obligated to bring in additional collateral if the loan is not fully collateralized, or pay the loan down to the collateral value.

STOCK PURCHASE LOAN

This is a single payment loan, payable at maturity, that will allow members (Dow Employees) to purchase Dow Chemical stock under the annual ESP (Employee Stock Purchase Plan) offering.

There is a $25 application fee and members may borrow up to $15,000 (total unsecured debt), to purchase stock. The Maturity date is set at up to 1 year from the date of the loan (6 months if set up as a single pay loan).

A second ESP loan will not be allowed until the first one is satisfied. Refinancing is not allowed on ESP loans.

Capital Gains:
The loan can be increased according to the following formula to offset the capital gains tax between the stock plan price and the issue price:

1. Subscription Price X 1.15 less the subscription price = the difference between the subscription price and the issue price.

2. The difference between the subscription price and the issue price X the number of shares X .28

HOME EQUITY LOANS

Whether you want to buy a home, refinance your existing home, or you want to use the equity in your home to finance major expenses, DLFCU can help.  DLFCU has a full line of Equity Mortgage Loans and financing options for New Homes.

LOAN PAYMENT OPTIONS

 º Payroll deduction- Allot a portion of your paycheck to be electronically applied toward your balance. You may even qualify for a special loan discount (ask a DLFCU Representative if you qualify)

 º Automatic transfers- Designate a monthly transfer of funds from one of your DLFCU accounts directly to your loan payment.