BICF Mortgage Loans for Facilities

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 standard interest rate effective January 1, 2009 for congregational mortgages is 6.00%. 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. 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:

URL: www.bicfoundation.org/org/mortgage_loans_for_facilities.htm