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Loans are made from the Brotherhood Loan Fund to pastors for the purchase, construction, remodeling or expansion of their primary residence.
Qualifications
As a pastor with the Brethren in
Christ Church you may apply for a loan. To qualify for the loan you will
provide a 20% down payment. Additionally, debt repayments including this
new loan should not exceed 35% of your income.
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.
By reviewing these two documents the Loan Officer can determine if you meet the
qualifications for a loan from the Foundation. The loan application is
then sent to the Foundation's Loan Committee for final review. This
review is 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 interest rate
effective January 1, 2009 for pastoral
mortgages is 5.00%. 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 of the invoice. 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.
For more information:
| URL: www.bicfoundation.org/indiv/mortgage_loans_for_pastors.htm |
Last Modified on November 17, 2008 | Brethren in Christ Foundation, Inc. All rights reserved.