Beginning in 2011, the Church Loan Fund started offering church loans to Church of God congregations across the United States. The Church Loan Fund is run by the knowledgeable loan staff that previously managed the loan portfolio for the Ministers’ Retirement Plan.
While the loan program operates similar to the previous church loan program under the retirement plan, some aspects have changed – and hopefully for the better. Most notably, the Church Loan Fund now offers rates ranging from a low of 6.75% to a high of 8.75%, compared to the old program where all loans were priced at the 8.75% rate. Under the new rate structure, the interest rate is determined based upon an objective, detailed analysis of the credit-worthiness of the church following a thorough review of the church’s financial condition. Simply put, a church which can demonstrate stable to growing income, plus control over their discretionary spending, may qualify for an interest rate as low as 6.75%.
An extensive application process is required before a loan request will be considered by the Church Loan Fund. The major provisions of the church loan program are as follows:
- Five-year (5) balloon note OR a ten-year (10) balloon note with a five-year interest reset provision.
- Twenty-year (20) amortization schedule for payment and interest
- No Prepayment Charges
- No Origination Fees
- $250 Application Fee
- Loan to Value Ratio not to exceed 60% of the current appraised value
- Loans payments not to exceed 15-25% of the church’s monthly income
- Basic documentation requirements include a first mortgage, approval resolution by the local church, state or regional council guaranty agreement, non-compete covenant by pastor, Church of God “warranty deed,” certified appraisal, title insurance, property and casualty insurance, etc.
If you are interested in a loan from the Church Loan Fund, you are invited to visit our web site at http://www.benefitsboard.com/churchloans/ to learn more about the program. After reviewing the policy manual at the above link, you may contact the Church Loan Fund staff by e-mail at aconine@benefitsboard.com or by phone at (877) 478-7190 toll-free.
Church of God Benefits Board, Inc. 