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.
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