Church building financing
As the name suggests, church building financing is used for financing the amount needed for construction or renovation of church buildings. Many types of institutions do it. Though religious institutions have not shown excellent support for church building finance, there are many stewardship development firms and other financial institutions that undertake church building project. Most of stewardship development firms provide assistance for church building finance within their congregations.
Before approaching any institution for financing, church leaders must know what ministry would be served by new construction and what is the realistic level of financing that can be supported by stewardship development firms. For getting this type of financing facility, it is also essential that complete assessment of overall financial picture of church should be done. For required financing, churches can take advantage of resources and experience of various types of national financing institutions like banks.
For example, Bank of West is one financing institution that provides financing facility. Before providing the necessary amount, debt capacity is analyzed and then, desired financing is offered for periods up to 25 years. Most of banks provide finance at fixed interest rate. If long term financing health of church is not seen as good, lender may not be able to provide finance with long amortization. Normally, no prepayment penalty is applied in church building finance. Apart from national financial institutions, churches can also approach groups that specialize in their ministries. For example, Evangelical Church Credit Union in California is one such group.
Griffin Capital Funding is one of various institutions that provide above type of finance. All loans are provided through Church Loan Division, which can be contacted at 800-710-6762. As far as interest rates are concerned, they are among best in nation. Current church loan rate for a period of 5 years period is 5.95%. Similarly, interest rate applied for church building financing obtained for a period of 10 years is 6.25%. Interest rates attached with 20-year church building financing is 6.9%. Griffin specializes in providing church loans only and these are provided for buying, constructing and renovating of churches. Even a person can contact this lender for refinancing of existing church loans. Being a church financing expert, it has designed number of financing programs so that exact needs are fulfilled. For getting church building financing facility, it is required that a person is in business for last 3 years at least and borrowing needs are $100000 or more. 100% Purchase Program is one of various financing facilities that helps a church in buying building and using equity of same for making down payment. This loan program is provided with excellent interest rates and other terms and conditions. For determining the maximum loan amount, traditional debt coverage calculations are used. There is no personal guarantee required for this type of loan. This type of facility is not available to mortgage brokers.
Another church building financing facility that is most lenient program available at this lender is Easy Qualifier Program. Under this type of financing, church is allowed to borrow up to 4.5 times of its gross income. Interest rate applied in this type of loan program is slightly higher. Apart from above financing solutions, other programs available are Traditional 5/25 and 5/20 programs, Church Saver program that enable churches facing financing crunches in fulfilling their financial requirements and Pay Interest only Construction programs in which no interest is payable during construction of church and in which up to 100% of purchasing cost is financed.
Ziegler Financing is also one of leading providers of church building finance in United States. Loans are provided through its offices located across the nation. For example, in Midwest, it can be contacted at 250 E. Wisconsin Ave, Suite 1900 Milwaukee WI. Its contact number is 414-978-6400. In Southwest region, it can be contacted at 5299 DTC Blvd, Suite 110 Green wood Village CO. Its contact number is 303-794-6045. Apart from above type of financing, Ziegler also provides finance for expansion projects through mortgages and for refinancing of existing church loans. It has been providing services since 1913 across the nation and in present times, it is a leading financing institution that provides mortgage-financing programs to various types of non-profit organizations. It has worked with all types of ministries New Life Church in Colorado, Vineyard Community in Ohio etc. Experts associated with this source provide essential help required in various processes associated with church building construction like budgeting, planning, contacting contractor, etc. By virtue of vast experience, Ziegler has been able to guide churches in many types of problems relating to finance and building. It is important to understand here that for accomplishing required finance, Ziegler underwrites bond issues.
Various types of benefits obtained by churches by obtaining church building finance from Ziegler include long-term security, as it provides fully amortized loans, open-ended mortgage, reduced risk, no prepayment penalties, greater flexibility etc. Low interest rates attached with financing and obtained through bond issue remains it for entire loan term. Church financing is done for maximum period of 20 years.
Another important institution in United States that provides church building finance is ARKS. ARKS is an organization of Christian men and women that has vast experience in church finance, development, construction and consulting. ARKS specialize in providing best solutions for church building programs. It has been providing above type of finance since 1994 and has helped many churches in completing their construction programs successfully. ARKS can be easily contacted at 6118 St. Giles St. Suite 130 Raleigh NC. Its contact number is 888-789-ARKS.
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