Acquisition or refinance; limited and substantial rehabilitation; ground up new construction. Must have at least a 3 year operating history. (No start-ups) Must be a 501c3 Organization.
Eligible Properties: Church structures including sanctuary, parsonage, fellowship halls and all other church
owned properties, which may also include commercial, office, retail, residential, apartment, etc. , and almost any other property type. The net revenue derived from the commercial component is added to other church revenue. The church component should occupy 25% or more of the property.
Transaction Size: $250,000 to $15 million or more. Target Range: $500,000 to $5,000,000
Recourse: No personal recourse for routine transactions. If the church has credit or other
transaction underwriting issues, the loan may require personal guarantees from creditworthy
members.
Interest Rate: Fixed and adjustable available – ( subject to change )
Loan Term: 5 to 10 years – balloon at end of term; 20 year fixed rate with no balloon
Amortization: 20 to 25 years; 30 year amortization considered for loans of $3,000,000 or more
Prepayment Penalty: Most loan structures are pre-payable at any time without penalty
Closing time: Typically 60 business days from completed Application
Required Documents
Last 3 years Church financials including palte income, other income, expense details,ance sheets, cash flows, and YTD Budget and actual comparrison
Details exisiting church mortgage/lease to be paid from proceeds. Please provide terms, lender/landlord names, balance owing, etc.
Purchase Agreement (If purchase transaction)
Detailed used of funds with specified amounts of all uses( ie. repairs, rehabs, etc)
Copy of Church Articles of Incorporation , Church Bylaws, and a list of officers authorized to sign financial documents
Breif History on the chruch
Resumes on Head Clergyman and Church Leaders