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Churches
and Organizations > Mortgage Loans for Facilities
Mortgage Loans for Facilities
Loans are provided to congregations
and church agencies to finance the purchase, construction, remodeling or
expansion of their facilities.
Qualifications
As a Brethren in Christ Church or
Agency you may apply. To qualify for a Tier 1 loan you will provide a 20%
down payment. Tier 2 - 5 loans are made with
participation of the regional conference. A preferred rate is available to
congregations that meet certain additional standards. This rate is lower
than the standard rate for Tier 1 loans.
Application
Process
The first step is to complete an application. A qualified appraisal is
also required to support the purchase price, construction or remodeling costs of
the proposed project. After review of these documents and other requested
information the Loan Officer may find necessary to determine eligibility, the
loan application is sent to the Foundation's Loan Committee for final review and or approval. This
review is usually completed in 10 days or less.
Rates
and Fees
The Foundation, unlike most banking
institutions, does not charge any fees or points at closing. There are
also no fees charged nor a premium interest rate used during the construction
phase of a project. The current standard interest rate for congregational
mortgages is 5.25%. The interest rate is variable and the Foundation may
adjust the rate up or down at the beginning of any month. A 30-day written
notice of the change is required prior to the effective date. Increases or
decreases in interest rates may not be made retroactively. Both the rates
for loans and the investments which fund the loans, are variable to react to
changes in economic conditions. The intention of the Foundation is to
maintain loan rates and investment rates as stable as possible. Generally,
rates are adjusted annually as needed.
Documentation
The Foundation prepares a Note
Secured by Mortgage and the Mortgage document and sends them to the closing
agent. For a construction loan an Construction Agreement will be
prepared and also a Stipulation Against Liens (to be signed off by the
contractor). At the completion of construction the Foundation prepares the
Note and Mortgage for closing.
Costs
The applicant is responsible for
costs incurred for an appraisal, title insurance, recording the mortgage and any
other legal expenses associated with the closing.
Loan
repayments
On construction loans interest is billed monthly on the amount of the draws to
date and is due upon receipt. At closing an amortization schedule is
provided for all loans showing the principal and interest due monthly.
Automatic payments are then scheduled and begin the month following closing.
The payment is withdrawn on the last business day of each month from your
checking account. Additional principal payments may be made at any time by
check or bank wire without penalty.
Forms:
For more information:
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