Church Loans - Construction (Only)
Loan Type
Conventional, Full Doc
Min Loan
$1,000,000
Max Loan
$10,000,000 (#1)
LTV
up to 80%
Interest Rate
6.9%
Term
Fixed, Construction + 5 Years (#2)
Amortization
30 Years
DSCR
3x - 4x Tithings (#3)
Credit Score
N/A
PrePay Penalty?
5% for 5 years (#4)
Lock Out?
No
Interest Guaranty?
No
Exit fee?
No
Balloon?
Yes (#5)
Personal Guarantee?
Yes
Documents Required
A pick list of documents, information and items required, depending on lender, will be provided.
Closing Time
90 - 120 days
Lender Fee?
Typically, 1 point (depending on deal, lender)
Broker Fee?
No
Eligible Properties
Churches, Schools, Sanctuaries
Eligible States
All
Other
Major rehab and/or expansion projections considered, as well as construction projects
Note #1
Up to $30,000,000 by exception
Note #2
Rate fixed at 6.9% during construction and for 5 years following completion of construction
Note #3
Instead of NOI used in DSCR calculations, income is approximated at 3 to 4 times unrestricted collections, depending on lender.
Note #4
PP Penalty declines 1% each year, from 5% in the 1st year to 1% in the 5th year. Please see ‘PrePayment Penalty: Subsidy’
Note #5
Balloon payment due after the 5th year following completion of construction.
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