Church Financing Loans


Mortgages, loans, & Financing Nationwide

A Church has two commonly used meanings. Often the word 'Church' is used to describe a place of worship, a church building, or congregation or local gathering of religious believers. It is used to describe the local congregation or the larger body of a religious community. A church building is a building or structure whose primary purpose is to facilitate the meeting of a church. Originally, Christians met in synagogues and in one another's homes. As Christianity grew and became more accepted by governments, rooms, and eventually entire buildings, were set aside for the explicit purpose of Christian worship. Traditional church buildings are often in the shape of a cross, and frequently have a tower or dome. More modern church buildings have a variety of architectural styles and layouts; many buildings that were designed for other purposes have now been converted for church use, and similarly many original church buildings have been put to other uses.


Church Financing Programs Overview

Commercial Loan Direct provides financing for churches nationwide including; church purchasing or acquisition, church refinance, and church construction.

Bond Financing Option
Term: 15-year to 25-year term (fixed interest rate)
Amortization: 15-year to 25-year amortization
Loan to Value: Approximately 75%, supported by book value or appraisal
Firm Underwriting
Other Features: Interest-only options available
No depository relationship required
No pre-payment penalty
No Personal Guarantee required
Open-ended mortgage allows for future borrowing without disturbing original loan
Conventional Bank Church Option
Term: 5-year term (fixed or floating interest rate)
Amortization: 10-year to 30-year amortization
Term: 2-5 Years
Loan to Value: Approximately 75%, supported by appraisal
Other Features: Interest-only options available
Depository relationship
No pre-payment penalty except from external borrowed funds for the first 3 years
No Personal Guarantee required
Church Loan Parameters
33% test: Ratio of annual mortgage payments to annual receipts
75% loan-to-value ratio: Percentage of the loan to the value of existing buildings, land and project being financed by loan
Minimum loan amount requirement: a. Bond financing option = $1,000,000
b. Conventional bank financing option = $700,000
Fixed price contract and bondable contractor required on all construction projects
Analysis of historical and projected debt service coverage

Please note this is a general summary of terms and not a formal loan commitment. Formal credit approval and satisfactory due diligence are required.

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