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Mortgage Loans for Pastors

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 (US) 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 current interest rate for pastoral mortgages is 3.25%.  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.

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

At closing an amortization schedule is provided showing the principal and interest due monthly.  During construction, interest is billed monthly on the amount of the draws to date and is vouchered from the your checking account by ACH.   Automatic payments are then scheduled and begin the month following closing or completion of construction.  The payment is withdrawn on the last business day of each month.  Additional principal payments may be made at any time by check or by ACH at request of you the borrower.

Forms:

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