Church Construction Loan

Church Construction Loan to Permanent Loan Program

Our network lender programs combine the church construction loan and permanent financing of your project. You qualify for the loan once, lock in the permanent rate, sign one set of loan documents and have up to 12 months to complete the construction.

During the construction period, interest is charged only on the funds that have been disbursed. When the project is completed, the permanent loan period begins.

This is a "One Time Close" church construction loan program to finance the construction of a new sanctuary, educational wing, gymnasium, etc. providing both the construction financing and permanent loan all in one closing. This means that you sign only one set of loan documents and do not have to worry about re-qualifying, re-appraisals, additional closing costs or signing additional loan documents.

Unlike a purchase transaction of an existing church, a Construction To Permanent Loan involves determining the value of something that is not yet constructed! To assist the appraiser and the lender in determining the value of the structure after it is built, information must provided as to:

• What is going to be built or constructed?

• What materials are going to be used?

• How much will the material cost?

• How much is the actual work going to cost?

• How much did the land cost, what is it worth today?

• How much will be spent on plans and permits?

You will have another very important item to be concerned with, which is your organizations choice of the general contractor who will be awarded the contract and the actual text of the construction contract. From the general contractor, the lender will need a resume and a builder's application to be completed along with a credit check. This is for your protection as well as the capital provider's, and ensures that he/she is experienced, has a proven tract record, and will be able to perform under the terms of the contract. In addition to the above, our network lenders will of course need the standard income and credit documentation that is required in any real estate transaction.