Please read the requirements for Church Financing. A Church Loan will be treated like a business loan, rates will be provided from the Lender upon submittal of the loan request.

1) Operating History:

>Three years of historical operating statements, although a five year history can be recommended. A start-up church that is affiliated with an established church is acceptable, if the parent church can co-sign and its operating history can be considered.

2) Annual Income:

> The church's reported income for the past 3 years should be relatively consistent, with no major fluctuations otherwise the lender will tend to take the lesser of the historical income and use that information to determine the debt servicing. Ideally, the amount of debt should not exceed four times the annual income of the church.

3) Property Value:

> Typically, a lender reviews a church property as a no value asset and that is the purpose it is treated as a business. However an appraisal will be ordered and will determine a value for which the collateral for the loan will be considered. Typically, the lender will lend up to 75% LTV, although 80% is possible.

4) Appearance of the Church

> As with any property, appearance plays a pertinent part in the consideration of the financing request since it is the principal collateral for the loan. Some Churches are opting for less traditional space, and setting up operations in Industrial or retail spaces. That can often be more attractive because the property can then be considered for a commercial mortgage loan, since the building could be rented out to any other type of business should the lender have to foreclose. Pictures showing the front of the church, the parking lot, the alter and the pews are required for the process.

5) Age of Church

A church that has been run under the same denomination for 50 years is more attractive then the church that church that has been run under the same denomination for 50 years is more attractive then the church that started from scratch last year. Some lenders will want to get the loan off of their books and it's easier for the lender to market these "bonds" to other investors if the church has a long operating history.