Secure competitive church commercial loans for purchasing a sanctuary, refinancing an existing mortgage, or funding construction and renovations. Our church lending team understands donation-driven cash flow, board approvals, and seasonal giving patterns.
Ideal for: sanctuaries, fellowship halls, classrooms, daycare wings, parsonages, and multi-campus ministries.
Church Financing Programs Overview
Choose between tax-exempt style bond financing or conventional bank options, both tailored to the needs of faith-based organizations.
| Bond Financing Option | |
|---|---|
| Term: | 15-year to 25-year term (fixed interest rate) |
| Amortization: | 15-year to 25-year amortization |
| LTV: | Approximately 75%, supported by book value or appraisal |
| Other Features: | Interest-only options available No depository relationship required No pre-payment penalty No personal guarantee required Open-ended mortgage allows for future borrowing without disturbing original loan |
| Conventional Bank Church Option | |
|---|---|
| Term: | 5-year term (fixed or floating interest rate) |
| Amortization: | 10-year to 30-year amortization |
| LTV: | Approximately 75%, supported by appraisal |
| Other Features: | Interest-only options available Depository relationship No pre-payment penalty except from external borrowed funds for the first 3 years No personal guarantee required |
| Church Loan Parameters | |
|---|---|
| 33% Test: | Ratio of annual mortgage payments to annual receipts |
| 75% loan-to-value ratio: | Percentage of the loan to the value of existing buildings, land and project being financed by loan |
| LTV: | Approximately 75%, supported by appraisal |
| Minimum loan amount requirement: |
a. Bond financing option = $1,000,000 b. Conventional bank financing option = $700,000 |
| Other Parameters: |
Fixed price contract and bondable contractor required on all construction
projects. Analysis of historical and projected debt service coverage |
Church Loan Highlights
- Competitive fixed or floating rates with interest-only options during build or renovation.
- No personal guarantees required in most cases; focus stays on church strength and collateral.
- Rate locks available to protect against market moves before closing.
- Streamlined checklist and clear milestones from term sheet through funding.
- Nationwide lending for established congregations and growing ministries.
Eligibility Snapshot
- Generally 3+ years operating history (new church plants considered with strong sponsorship).
- Board-approved borrowing resolution and evidence of stable giving/attendance trends.
- Collateral can include sanctuary, classrooms, daycare facilities, land, and parsonage.
- Minimum loan sizes: $1,000,000 (bond) and $700,000 (conventional).
How to Get Started
- Request a quote using the form above or call our church lending desk.
- Share recent financials, giving trends, property details, and any existing notes.
- Receive a tailored term sheet outlining structure, rate options, and timelines.
- We coordinate appraisal, title, and closing with your board and counsel.
FAQs About Church Commercial Loans
Please note this is a general summary of terms and not a formal loan commitment. Formal credit approval and satisfactory due diligence are required.
