Church Mortgage
Loan Program
CHURCH
MORTGAGE LOAN
This type of loan is used to buy real estate and is always a first
mortgage. Your organization may be purchasing land, a larger sanctuary, or even a day care center. Each of these has its own set of lending "rules" that dictate how your
church mortgage can be structured.
Our network lenders will consider the property type, your
organization's assets, income, and the amount of money you have to put down to determine how much they will lend and at what
rate.
To
apply for a church mortgage,
the following must be submitted to us:
| General
Information |
| Financials |
Financial
statements of the church's last three fiscal years and
current period (if available) including income
statements and balance sheets. |
| Appraisal |
Estimated
appraisal value of the property to be mortgaged to
secure the financing. If an appraisal is not available,
we will consider the “book value” or other
indicators as part of our preliminary evaluation. |
| Use
of Proceeds |
Itemized
list of the intended use of the requested loan proceeds. |
| History |
A
brief history of the church including date of origin,
denominational affiliation, if any, and adult membership
and attendance figures. |
| Resume |
A
brief resume or biography of the church’s senior
pastor. |
| Project |
A
brief description of the proposed construction or
renovation project (if applicable). |
| Qualifications |
| Loan
to Value |
Loan
amount should not exceed 75% of the value of the church
property as completed. |
| Loan
Size |
Loan
amount should normally not exceed three times the
church’s last fiscal year’s total support and
revenue. |
| Ability
to Repay |
The
church must demonstrate the ability during its preceding
two fiscal periods to comfortably repay the anticipated
mortgage loan. |
| Construction |
In
renovation or construction projects, the church must
engage an independent general contractor under a firm
fixed-price contract. |
| Non-Profit
Corporation |
Our
loans are available exclusively to those organizations
deemed "non-profit" organizations by the
Internal Revenue Service, such as churches and schools. |
|
