Church Construction Loans

Our Partners offers church construction loans that are looking to build almost any type of building:

  • Sanctuary,
  • Family Life Center,
  • Gymnasium… just to name a few.

Types of Church Construction Loans We Offer

We offer 4 types of construction loans for churches:

  • Financing for Churches that already own property and want to build a new building or an addition.
  • For Churches that want to buy land and build a new building.
  • Financing for Churches that want to buy a property that already has a building on it and build an addition to that property.
  • For Churches in the middle of a construction project and have run out of money and the project has stalled.

Benefits of Church Construction Loans

Most of our church construction loan programs have the following benefits:

  • Finance up to 100% of the project cost as long as the total project cost does not exceed 80% of the as completed value of the property. This is good for churches that do not have or do not want to use their cash but already own land that they want to build on.
  • No Personal Guarantees are usually needed on our church loans.
  • No audited financial statements are usually needed.
  • Interest only payments during construction.
  • Loan turns into a permanent loan on completion of the construction. So, there is only one loan closing, saving the church money.
  • Low interest rate and great church loan terms.

What is the maximum amount of money a church can afford to borrow?

Underwriters take many factors into consideration when determining the maximum borrowing capacity of a church. A good rough estimate of the general range a church can borrow is to take the last 12 months of gross general tithes and offerings income and multiply that number by 3 times and by 5 times and that will generally give you the low end of what the church can borrow and the high end of what the Church can borrow. As an example if a church has gross income of $500,000 per year they can probably borrow between $1,500,000 and $2,500,000 ( Other Scenarios can be worked out based on Land/Property Ownership Free and Clear)

Construction Completion of a Church in Progress:

Each year, we have the great fortune of working with thousands of churches and some of those are in difficult situations; one of the most difficult situations is a stalled construction project. Whether the church ran out of money, has cost over runs or their lender is refusing to honor the draw requests, we can likely help. Over the years we have provided financing to help finish churches that are unable to complete their construction project because of a lack of funding.

If your church is looking for a construction loan, we want to help, our advice is free whether we provide the financing for your project or not.

Items needed for a Pre Review

1) Total Amount Needed and for how long?

2) Executive Summary

3) *Last 3 Years Church Financials (Year End Financial Statement or Taxes are OK)

4) YTD Financial Statement

5) Give a Count of Church Membership last 3 years average

6) Site Plans

7) Budget for construction –  After Completion Value

8) Land Value As Of Today building on and are there any mortgages on it now and if so how much

9) Are Permits, Impact Studies and Entitlements completed

10) How soon are they ready to break ground

11) How long has the Church Been Around

12) Do you have the General Contractor Already selected and His Resume

13) What Type or Terms are you seeking and what is the Exist Strategy

14) Who Will be the signer on behalf of the Church and what’s their credit score?

There could be more questions but this will help get us going to see the feasibility of the project overall. We look forward to funding your church project. Call us at 888 676-0196.