Eligible Locations:

Most markets in Continental US

Eligible Transactions:

Acquisition or refinance; limited and substantial rehabilitation; ground up new construction for churches with at least a 3 year operating history. (No start-ups)

Eligible Properties:

Church structures including sanctuary, parsonage, fellowship halls and all other church owned properties, which may also be commercial, office, retail, residential, apartment, etc. , and almost any other property type.

Financials:

3 Year Profit & Loss Statements with Balance Sheets; must be prepared by a qualified financial consultant or CPA – depending on loan amount, the level of work must be either compiled, reviewed or audited. The larger the loan, the higher the level required.

Transaction Size:

$1,000,000 to $25 million.

Commercial Occupancy

Not an issue – the commercial revenue derived is added to other church revenues including donations, tithing, etc.

Eligible Borrowers:

Good church credit must be demonstrated; if the church has a poor credit history, the loan may require additional personal guarantees from credit-worthy members

Ownership:

501c3 organization required

Recourse:

No personal recourse to Principals for routine transactions

Application Fee:

Fee of $1,500 is due with the signed Application.

Transaction Expenses:

Not greater than $5,000 for appraisal, third party, legal and closing costs. (Final cost may differ depending on the property location, condition and age.)

Origination Fee:

1-2 points. Par loans and buy-down of interest rate is available for additional points.

Down Payment:

For acquisitions, minimum of 20% in cash, must be verifiable

LTV :

Lesser of 80% of purchase price or appraised value for a purchase; for a refinance, up to 80% LTV where proceeds used for renovations, etc.; no simple cash-out refinance

Interest Rate:

Fixed and adjustable available – range between 5.0% and 7.0% fixed - see website or call for latest rates which change daily

Loan Term:

5 - 10 years – balloon at end of term; 15 year self amortizing (no balloon)

Amortization:

20 - 25 years

DSC:

Minimum of 1.25 x

Second mortgage:

Possible case by case – but not to avoid a cash down payment

Prepayment Penalty

In the case of a refinance, 3%, 2%, 1% of principal balance depending on the period of fixed rate – no penalty for principal reduction payments or to pay off loan completely.

Third party reports:

Appraisal, env. screen, and if required, property condition, seismic- ordered by Lender at expense of Borrower (all costing no more than about $5,000 and included in Transaction Expenses noted above.)

Closing time:

60 business days from completed Application