Church Construction Loan

Church Construction Loan to Permanent Loan Program

Our network lender programs combine the church construction loan and permanent financing of your project. You qualify for the loan once, lock in the permanent rate, sign one set of loan documents and have up to 12 months to complete the construction.

During the construction period, interest is charged only on the funds that have been disbursed. When the project is completed, the permanent loan period begins.

This is a "One Time Close" church construction loan program to finance the construction of a new sanctuary, educational wing, gymnasium, etc. providing both the construction financing and permanent loan all in one closing. This means that you sign only one set of loan documents and do not have to worry about re-qualifying, re-appraisals, additional closing costs or signing additional loan documents.

Unlike a purchase transaction of an existing church, a Construction To Permanent Loan involves determining the value of something that is not yet constructed! To assist the appraiser and the lender in determining the value of the structure after it is built, information must provided as to:

• What is going to be built or constructed?
• What materials are going to be used?
• How much will the material cost?
• How much is the actual work going to cost?
• How much did the land cost, what is it worth today?
• How much will be spent on plans and permits

You will have another very important item to be concerned with, which is your organizations choice of the general contractor who will be awarded the contract and the actual text of the construction contract. From the general contractor, the lender will need a resume and a builder's application to be completed along with a credit check.

This is for your protection as well as the capital provider's, and ensures that he/she is experienced, has a proven track record, and will be able to perform under the terms of the contract.

In addition to the above, our network lenders will of course need the standard income and credit documentation that is required in any real estate transaction.

Church Refinancing

GET CHURCH LENDERS COMPETING FOR YOUR REFINANCED CHURCH MORTGAGE

  

If you are considering church refinancing, the first steps are determining your short and long term goals and then evaluating the different types of church refinancing programs that are available to you.

Once you have your goals to what's available, you will be able to make an informed decision on how you want to proceed. The first thing to consider is your current interest rate. If the church was bought when interest rates were high or if you have an adjustable rate mortgage, chances are refinancing to a different- lower term may be able to save your church money immediately and over the course of your church loan.

If you purchased or financed when interest rates were low, church refinancing may not be the best thing to do. In the past, it was a general rule that refinancing makes good financial sense if your current interest rate is at least 1.5 percentage points higher than the current market rate and your church or organization plans to reside in the church for at least 3 years.

Consider a church refinance:

• Shorten Church Loan Terms and Reduce Interest Costs
• Church Debt Consolidation
• Request a Free Analysis for Church Refinance Savings! The most competitive interest rates!

Church Financing Parameters

ChurchCa$h Consulting uses the following parameters to determine whether we can assist you.

• 33% Income Test- Your organization's annual debt service should not exceed one third of its income.
• For example: If a church has general funds income of $750,000, the annual mortgage payment should not exceed $250,000. Building-fund monies can be used in the calculation in some instances.
• 75% loan to value ratio- The percentage of the loan to the value of existing buildings, land, and the project being financed by the loan should not exceed 75%. Example- Appraised or "book" value is $2,000,000. That amount, multiplied by 75% suggests a $1,500,00 loan amount.
• The organization must have an operating history of more than three years.
• We have a minimum loan requirement.
• A fixed-price construction contract is required on new building projects.