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Church Loan Articles
What Does It Take To Get A Church Loan?
Church loans are considered to be commercial loans. However, some of the features a commercial loan provides may not be applicable to a church loan. Church financing requires different considerations than a standard commercial loan
Lenders who extend loans to churches are many times familiar with the church or have been involved with the church for many years. Therefore, these church loans are not as closely scrutinized, as if the same individual was applying for a home loan. Each process regarding a church loan is different, due to the circumstances of the loan. However, providing the lender with enough information in the beginning can speed up the process.
When a borrower is applying for a church loan, there are several things they need to do: Provide 3 years plus year to date income and expense statements as well as balance sheets for the church, a church loan application, provide a few digital photos of the property. Commercial church lenders may want to know about the vision of the church and information about the ministry, the history of the church and the church’s leaders.
When the underwriting process is finished, the loan will be accepted or denied. If the loan is approved closing can happen relatively quickly provided the due diligence work like appraisals and title work can be done quickly.
Before approval is granted, the church lender, pastor and business administrator will usually get together and discuss proposed terms and take a look at the property to be used as collateral. Introducing the lender to some of the members who have attended the church for a long time can help the lender get a sense of what the church’s past, present and future may be like.
There are very few lenders that offer loans to churches as they are considered to be more risky than most commercial loan types.Griffin Capital Funding Specializes in providing church financing for churches in the United States for loan amounts from $50,000 to $35,000,000 and is one of the most well known and largest church financing companies in the country. They can be reached on line at www.churchloans.net or 540-548-1001 for information on their church loan products.
