OVERVIEW OF PROGRAM GUIDLINES
The outline below highlights some of the more important financing features that are available through the Church Banking Division of our Finance Partner. It is provided as a general guide to assist your leadership team in evaluating alternatives for 1) cost savings, and 2) comparison to other terms and conditions available in the marketplace. These features apply to the majority of transactions.
1. No bank construction inspections or inspection fees are typically required. All draws are made by a Certified Request-For-Funds document from the church to
the bank and are coordinated with the title company to expedite funding with minimal expense.
2. No payment and performance bond is required which equates to a 2% savings of construction costs.
3. Option to fix the interest rate for up to 10 years at the beginning of construction or variable interest rate indexes used for construction loans include 1 month LIBOR.
4. Construction loan terms are typically 12-24 months (or as requested by the church for sufficient time to complete the project and obtain a certificate of
5. Depending on the dept capacity of your church in relation to the loan amount requested, an appraisal may not be required resulting in both time and money
savings to you. 6. Costs and fees may be financed.
1. Conversion from construction loan to the term loan without a second loan closing.
2. Reamortization privilege, without cost, with a minimum pre-payment of 5% of the original principal
loan amount. In effect, this feature offers your church the privilege of a lower monthly payment.
3. Standard amortization period of 25 years. This important feature means an annual cash flow savings
every year of the loan of over $25,000 for each $1 million borrowed when comparing our 25-year
amortization period with other bank’s typical 15-year amortization. This savings can be direct to
other areas of your ministry.
4. Term loan maturity of 5 or 10 years. A 15-year maturity option is available using a 15-year
amortization if justified by the church’s cash flow for the proposed debt service.
5. Standard term loan pricing options include either i) variable rate based on 1 month Libor, ii) a one-
year adjustable rate, to be adjusted annually during the term option chosen, iii) a five-year fixed rate, or iv) 10-year fixed rate.
6. Cost and fees may be financed.