Church Loans are designated to help and assist churches with their financing needs for new construction or remodeling, the refinance of existing debt and, and the purchase of new property. The company specializes in mortgage lending for church construction projects, church expansion, purchases, and refinancing existing debt. The church loans company lenders provide long-term loans at highly competitive interest rates fixed for terms up to 30 years. Church Loans Company become primary experts in leadership’s objectives and financial capabilities, and creates flexible financing structures to fit those particular needs. Most of these funding entities can work in conjunction with church architects, construction professionals, and capital campaign advisors, to help the church meet all its goals.
The first step in getting a commercial loan for construction of the new church facility, it is very important to access and review the finances; estimate how much payment the church can afford based on the monthly plan term. After the church leadership determines the amount of payment that can be considered for monthly budget for a loan, then it can be decided on the actual amount of loan.
Most of banks will determine the loan amount depending on the cash flow of the church.Just like when you buy your home, the churches are required to demonstrate their ability to pay for the loan from their current monthly income. Having just an expensive property does not make the church qualified for the loan. The lender will mostly approve the amount of loan that is 30 to 35% less then your total monthly income.
When the church applies for a construction loan, most lenders will request a credit and financial history, and 20% in the project. The best way to go about getting a church loan is to check around for some banks and lenders who already working with other churches, or do a lot of business with this type of non-profit organization. They church loan brokers, or mortgage companies who mostly cater to churches, will no exactly what you need in order to qualify, and have other options available if you do not. It is wises to get several quotes and options from different big and small lenders; who are giving a construction loan to a church. Some lenders may not be so welcoming when it comes to new church loans.
Every new and small church possesses a risk to lenders, so the more information you provide and the more detailed you are in completing the financial application and documents; the more chances your church has to be able to qualify, not to mention getting the best rate possible.
Commonly, the banks or lenders will qualify a church for a construction loan for about three times higher then its yearly income.
So, getting a construction loan for new churches is not an easy process, however if you follow these simple steps above, it will make it easier to get the money you need.