What You Didn’t Know About Lending

Rocket Mortgage and United Wholesale Mortgage, the two largest U.S. companies in the industry, have now introduced 1% down mortgages, according to Bankrate. 

This is the lowest down payment required for a home loan ever heard of. Up until now, federal lending programs FannieMae and FreddieMac offered the lowest down payment requirement of just 3%.

Certainly, this provides these companies a much larger market and potentially gives a lot more people access to homeownership. But I’m not bringing this news up to compare Rocket Mortgage to FannieMae, or to analyze how many people this may impact, or to suggest whether this is a good or bad idea. I bring this up because I think what we’re seeing right now in the lending world gives us the opportunity to learn what God has to say about lending and how we can fit it into our decision-making.

Here’s an interesting fact: According to the Associated Press, the agency that dictates grammar rules for writers and journalists, there is actually a difference between using the word “loan” and “lend.” “Loan” is used only regarding the act of giving out money or anything relating to it; and “lend” is used for everything else. 

Now, if you’re not a grammar nerd like me, that might not mean anything to you. But how the Bible distinguishes loan and lend might…

It says that, first of all, God desires us to be lenders, not borrowers. The head and not the tail (Deuteronomy 28:12-13). And more importantly, it says a good person is gracious and lends (Psalm 112:5).

The way I look at it, what you loan to someone is simply a transaction—like what Rocket Mortgage and FannieMae are in the business of doing—but what you lend is completely different. Lending comes from the heart.

In Ezekiel 18:8-9, the Lord says that a righteous man lends without charging interest and doesn’t look to profit. 

The more I read about lending in the Bible, the more I believe it is saying that God wants His children to lend a helping hand when the opportunities arise, and He wants us to loan money with a lender’s heart.

Deuteronomy 15:7-8 says that we should be able to help someone in need if it is in our power. And I feel challenged to be more aware of the needs of others who may be around me.

As financial disciples, whether it’s money or something else, we have the option to either be of the world, and make a business out of loaning for profit (Proverbs 28:8), or to be like the righteous man, and lend without interest. 

When your neighbor needs a ride to work… when your employee needs an advance… when your friend needs a place to stay… 

If you have the ability to lend a helping hand, allow God’s desires for you to press in, and when the time comes to decide… make the choice to be a lender. Because those who choose to lend walk in righteousness and shall never be moved (Psalm 15).

With gratitude,

Melody Stampley

Managing Editor

AUTHOR BIO 

Melody is the founder of financial coaching business Centsible Finance LLC. She earned a bachelor’s in public relations from the University of Florida in 2014, and a master’s in global strategic communications from Florida International University in 2017; but she discovered her passion in personal finance and writing, as well as a closer relationship with the Lord after joining a Compass – finances God’s way study in 2020. She now serves as a volunteer on the Compass Florida board, is the editor for the Compass blog, and a facilitator and trainer for financial discipleship studies. Melody, and her husband, Nate, have one son, Isaiah, and live in South Florida.