All loans are different and unique. Below are guidelines for all types of loan structures.
All states $500,000 minimum, except in Ohio, Michigan, Indiana, Kentucky, Tennessee and Florida, which may be less.
TYPES OF LOANS:
Purchase, Refinance, Construction, Expansion, Renovation, Additions, Parsonage, Retirement and Nursing Facilities, Raw Land, University Facilities, Church Schools, Church Camps, etc.
LOAN TO VALUE RATIO:
65-80% of appraised value and sometimes more with creative financing.
1, 3, 5 year ARMS (Conventional Loans). Other programs also available. (Call for rate quotes).
2.5 to 3.0 times gross revenues. (Example $250,000 gross annual revenues would qualify for a loan of $625,000 to $750,000.) Subject to economy.
MAXIMUM MONTHLY PAYMENT:
1 weeks average contribution should not exceed the monthly principal and interest payment.
5, 10, 15, 20 and sometimes 25-30 years on certain occasions.
Should be increasing for past 3 years. The borrower will need to provide last 3 years financial statements and year to date.
Church should be established at least 3 years and be able to show attendance growth annually.
Generally none, but based on individual loan and loan program chosen. Penalty if paid off by another financial institution in first 5 years.