Church/ Place of Worship Financing

Did you know that there are church loans? Yes, if you are passionate about the ministry you don’t have to struggle to raise it by yourself-you can simply approach a lender and you will be given a church loan.

Types of church loans

There are many types of church loans that are available for you. The most common ones are:

Traditional church loan: this is the traditional loan that has an amortization that ranges from 20 years to 30 years. It also comes with a fixed rate that ranges from 5 years to 20 years. When you approach a lender, he/she will use an underwriting method known as debt service coverage to determine the amount that your church can borrow. The cool this with this loan is that you don’t have to have personal guarantees. The loan also has excellent rates and terms.

Easy qualifier church loan: it’s easier for your church to qualify for this loan as the lender uses the multiple of income approach to determine the amount that you are able to borrow. Since it’s easy to get it, the loan is ideal for newer churches and churches operating on tight budgets. While it’s easy to get the loan, it’s good to note that it has slightly higher interest rates than the traditional church loan program; therefore, you should be ready to pay more.

Sanctuary saver: this is mainly aimed at saving churches from foreclosure. It also saves a church from losing its assets. If you have been operating a church for some time and you face financial problems, for example you fall behind in making some payments this is the loan to go for.

The loan is most ideal when you are unable to finance your mortgage. When you approach a lender, he/she will help you pay the mortgage thus help you to get back on your feet. While the loan is great, it’s good to note that it has higher interest rates. The loan is also limited. For example, the lender will only accept low loan to value transactions.

Low down payment church loan: it goes against the norm. Instead of putting down a large down payment, the loan allows you to put down as low as 10% as down payment which allows you to buy the property that you need at a very low cost.

Bond program: this is ideal when your church needs a long term fixed rate with no balloon.