Church Loans – Construction, Purchase, Re-fi

Loan Type Conventional, Full Doc Min Loan $400,000 Max Loan $20,000,000 LTV 65% – 80% (#1) Interest Rate 6.75% – 8.00% (#2) Term Fixed, 5 Years (#3, #7) Amortization 25 – 40 Years (#4) DSCR 3x – 4x Tithings (#5) Credit Score N/A PrePay Penalty? (#6) Lock Out? No Interest Guaranty? No Exit fee? No Balloon? (#7) Personal Guarantee? Yes Documents Required A pick list of documents, information and items required, depending on lender, will be provided. Closing Time 45 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 Purchases: 80% LTV, Rate & Term Re-fis: 75% LTV, Cash-out Re-fis: 65% LTV Note #2 Approximately 190 – 220 BPs over 5-yr or 10-yr Treasury (varies with lender) Note #3 Rate fixed at time of closing (See Note #2, above) Note #4 Construction: 40%; Purchase and Re-fis: 25 years Note #5 Instead of NOI used in DSCR calculations, income is approximated at 3 to 4 times unrestricted collections, depending on lender. Note #6 Varies with lending source, loan program Please see ‘PrePayment Penalty: Subsidy’ Note #7 Depending on lender, loan program: some loans fully amortize, meaning there’s no balloon; others balloon after the fixed-rate term of the loan (ex, after 5 years, if a 5-year fixed rate program). 5-year fixed rate loan programs are most common nowadays.