church loan programs

The world of Church and Ministry Mortgage Financing is one most pastors and ministry leaders are unfamiliar with. Many local banks, particularly smaller regional banks are just as unfamiliar with providing church loans to local churches. This can become a frustrating experience for both borrower and lender and usually results in the local church accepting inferior loan terms and conditions which ultimately costs the local church more than necessary.

Through our extensive church lender portfolio we have identified the financial institutions that are comfortable with, supportive of, and enthusiastically serve local churches & ministries. We have sought out those institutions that want to finance Kingdom growth and the capital expansion needs of churches. Each new lender adds a unique dimension to the matrix of available options for church loans insuring your ministry gets the very best available from our lenders from across the nation.

Our unique network of lenders includes; Wall Street Investment Banks, National and Regional Banks, Church Bond Finance Investment Bankers, Credit Unions, Christian Financial Institutions, and others. Why let a single church lender compete to serve you when you can have dozens of church lenders competing to serve your ministry loan needs?

Let Church Mortgage Solutions smooth out this process by making it a more positive and fruitful experience for both your ministry and church lending institutions. We will take the church by the hand and walk with you throughout the entire loan process serving as both advisor and advocate. Church Mortgage Solutions assists the ministry mortgage lender in structuring the church loan in a way that makes sense for the lender through interpreting data and trends, educating lenders regarding the uniqueness of churches, and eliminating the hassle of most church loan processes.

Unique Church Mortgage Products

  • 30-Year Amortization for Church Loans
  • Up to 25 and 30 Year Long Term Fixed Rate
  • 2nd Mortgages For Churches & Schools
  • Tax-Exempt Financing for Christian Schools
  • Retirement Community Financing
  • Letter of Credit Enhanced Financing
  • LIBOR, US Prime & US Treasury variable rate
  • Determine & lock construction and permanent loan rates at the front end of construction - NO variable construction rates
  • Loans less than $250,000
  • No pre-payment penalty
  • No personal guarantors
Standard Church Mortgage Products
  • 3, 5, 7-Year fixed rates
  • Monthly, Quarterly, Semi-Annually & Annual adjustable rates
  • Rate and Term Refinance
  • Debt Consolidation
  • Equity Lines of Credit and Cash Out options
  • Bridge Loans and Mezzanine financing
  • Pre-Development loans and lines of credit
  • Tax Exempt, Best Efforts (Bonds sold within the congregation) and General Obligation Bond Issues (Will not disturb existing mortgage loan)

Qualifying Your Ministry Financial Statements
The first step in the process of securing financing for your project is to review and qualify your organization's financial statements. Here's what we need for you to receive your FREE no obligation Funding Solutions Analysis and/or Funding Proposal:

Income & Expense Statement and Balance Sheet (2011, 2012, 2013 & 2014 Year-to-date)

Biographical Sketch of the Lead Pastor & Brief History of Church

Average Sunday Attendance, Membership & Family Giving Units Figures for the Past 3 Years

Description of the Project and/or Current Indebtedness

Detailed History of Capital Funds Campaign (Date of pledge, Length of Campaign, Amount Pledged, Amount Received YTD, etc.)

You can fax, e-mail or mail this information to us. We can then pre-qualify your ministry and get a Funding Solutions Analysis and/or Funding Proposal for you from the appropriate lenders.

Financial Ratios
There are certain key guidelines that ministry lenders typically use to risk rate a project for funding. If the Church's financial ratios don't fall within these limits, a Capital Stewardship Program may be required to improve the Church's financial health in order to qualify. Here are the most common financial ratios used by our lenders:

Debt to Income Maximum 35% of annual income
For Example: If the Church's has $1,000,000 in yearly income, the most that can be used for debt service (annual mortgage payment) is $350,000.

Maximum Capitalization 4 times annual income
For Example: If the Church has $1,000,000 in yearly income, the maximum loan amount can't be more than 4 times that amount, or $4,000,000.

Debt Service 1.0 to 1.25 times debt service
For Example
: If the debt service on a loan is $300,000, the church must have cash flow available that is at least 1.0 - 1.25 times that amount, or $300,000 - $375,000. Available cash flow for debt service is calculated by adding one-time or non-reoccurring expenses to your organizations net income.

Loan to Value Maximum 75%
For Example: A Loan amount of $1,000,000 cannot be greater than 75% of the appraised value of the property, or $1,333,333.

*Note: There are exceptions to every rule, and we can help you qualify for the best loan structure for your needs!