CHURCH LOANS

APPLICATION PROCESS

Although this may appear to be a long process with many items needed, you don’t have to stress, our team of experts will walk through every step with you.

 

Application Stage

The process begins with your completed application. We are able to get started with incomplete applications, but we eventually will need a complete application to make a decision.

 

  • Completed Application – Completed by the church, summarizes church info, growth, and giving trends
  • 52 Week Giving Worksheet – Completed by the church, provides giving details on the most recent 52 consecutive weeks
  • Giving Units Worksheet – Completed by the church, outlines how the giving is dispersed
  • Source and Use of Funds Worksheet – Completed by the church, offers a line by line account of how a project will be funded
  • P&L For Last 3 Years – Provided by the church, Profit and Loss; summarizes how much money comes in vs. how much goes out, sometimes referred to as budget vs. actual
  • Year-End Balance Sheets for Last 3 Years – Provided by the church, summarizes the church’s year-end financial positions
  • YTD P&L – Provided by the church, Profit and Loss; summarizes how much money has come in vs. how much has gone out, sometimes referred to as budget vs. actual for the current year ending in the last available whole month
  • YTD Balance Sheet – Provided by the church, summarizes the church’s financial positions for the current year ending in the last available whole month
  • Annual Budget for Current Year – Provided by the church, summarizes the church’s operating budget for the current financial year
  • Annual Budget for Last Year – Provided by the church, summarizes the church’s operating budget for the last financial year

 

Applicant Stage

We usually approve loans within a week of receiving your application, but we may have questions that could potentially lengthen this process. While we review your application, please begin gathering these documents to accelerate the closing process.

 

  • Copy of Construction Plans – Provided by the church, outlines the finalized scope of the project
  • Copy of Signed Construction Contract – Provided by the church, outlines the costs and timeline of the project
  • Complete Legal Description of each Parcel – Provided by the church, legally defines the property to be used as collateral, needed for a title search and insurance policy
  • Evidence of Zoning – Provided by the church, a statement from the local municipality indicating that a church can operate on the property in question
  • Articles of Incorporation – Provided by the church, the legal documents drafted at the church’s inception
  • Bylaws and Constitution – Provided by the church, the documents stating how the church is run, how decisions are made, and who can make them
  • Tax ID Number – Provided by the church, the church’s federally issued ID number for taxation purposes
  • Contact info for Current Lender – Provided by the church, a contact for the organization currently holding the mortgage on the property in question
  • Current Certificate of Good Standing – Provided by the church, confirms standing as a corporation in your area, usually provided by the Secretary of State’s office

 

Approved Loan Stage

Once we approve your loan and issue an official commitment to lend, the church needs to accept the presented terms and provide documentation stating that the church’s official governing body is on board with the decision.

 

  • Signed Commitment Letter – Provided by the church, a signed copy of our commitment to lend acknowledging intent to complete the loan with us
  • Supplemental Mortgagor Commitment – Provided by the church, a signed copy of our form acknowledging that the church cannot incur other/additional indebtedness without our permission
  • Church Resolution Approving the Loan – Provided by the church, a statement from the church’s governing body that indicates the church’s intent to complete the loan with us

 

Closing Stage

At this point, we usually need 4-6 weeks to procure the documentation needed to close the loan and record the mortgage. We will need the church’s full cooperation in this stage to ensure that everything goes as planned.

 

  • Title Insurance – Ordered by the Fund, a title insurance policy to protect both the fund and the borrower
  • Environmental Survey – Completed by the Church, a questionnaire about the environmental concerns and history of the property in question
  • Phase I Environmental Assessment – Ordered by the Fund, an assessment of any potential environmental concerns for the property in question
  • Appraisal – Ordered by the Fund, an assessment of value for the property in question
  • ALTA Spotted Plat of Survey – Ordered by the Fund, an assessment of any easements and the position of the building on the lot in question
  • List of permit-driven changes in cost – Provided by the church, an update of costs and expenses not accounted for on the initial plans and contracts
  • Final Permits – Provided by the church, an update of the final permits needed to ensure that the project can be completed as planned
  • Construction Escrow Forms – Provided by the church, a completed set of documents stating how construction draws will be handled
  • Evidence of Insurance Coverage – Provided by the church, a statement from the church’s insurance carrier stating coverage that complies with the Fund’s minimum requirements
  • Copy of Property Tax Exemption – Provided by the church, a statement of property tax exemption usually acquired after the occupancy permit is issued