09/26/2012
We understand that most churches do not have accountant prepared financial statements and in most cases we are able to work with a church that has internally prepared financial statements. There are cases where a church will need have their financial statements prepared by an accountant in conjunction with closing the church loan. This situation can arise when the church loan is very large or we do not understand the internally prepared statements.
If the church needs to have financial statements prepared by an accountant we can provide referrals to a number of accountants we have worked with in the past. We can not guarantee the work of third parties, and it is the responsibility of the church to negotiate a fair price although we can give some guidance. We do not receive any compensation from accountants that you choose to work with. You are welcome to use an accountant that you are familiar with.
There are many different types of church loans available and choosing the right loan for your church is an important decision. Our church loan Analysts have years of experience helping churches sort through our various programs and figure out what is best for them. We will listen to your needs, ask questions about your church and make recommendations on which church loan product we think is right for you.
Some of our more common church loan Programs are:
Traditional Church Loan:This is a traditional church loan with amortizations ranging from 10 years to 30 years and fixed rates ranging from 5 years to 20 years. This program uses an underwriting method called Debt Service Coverage to determine how much a church may be able to afford. This type of church loan does not normally require personal guarantees and has excellent rates and terms.
Easy Qualifier Church Loan:This church loan product uses a multiple of income approach to qualify the loan amount a church can afford to borrow. This loan type is often easier for a church to use to qualify than the Traditional church loan program. This loan program is often used for newer churches or churches that have had limited financial trouble in the past. This program has slightly higher interest rates than the Traditional church loan program.
Church Sanctuary Saver:Although it is rare, there are instances where a church will find itself in trouble, behind on payments and facing foreclosure. This program is used to help save those churches, with interest only payments possible, we can refinance your current mortgage and get you back on your feet. This program has higher interest rates and only accepts low loan to value transactions.
Low Down Payment Church Loan:Most lenders require churches to put down a lot of money when purchasing property. This church loan allows a church to put down as little as 10% of their own money by utilizing a first and second trust mortgage. The first trust would be provided through us and the second trust would come from the seller of the property or by other means. This program has great rates and terms.
Church Bond Program:If your church requires a long term fixed rate with no balloon then this may just be the program for you. Church Bonds have great interest rates and generally no balloons. The costs associated with this type of transaction are generally higher than our church loan programs but they can be a good fit for the right church.
