Church Investors Fund

Loan FAQ

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Frequently Asked Questions

What interest rates do churches pay on loans?
Does Church Investors Fund make loans to any kind of church?
Why should I borrow from Church Investors Fund?
How much of the construction cost can I borrow?
Is there an origination fee on new loans?
How long are loans amortized?
How long is the interest rate locked in on a loan?
Do I need an appraisal for a loan?
Is there a prepayment penalty for early pay down?
Do we need to prove our cash flow in order to get a loan?
Do we pay interest and principal during the construction phase?
Does Church Investors Fund give personal loans?
What should our church do if we are thinking about building?
What interest rates do churches pay on loans?
Interest rates may vary. Please call us at 1-800-543-2343 or email us for the latest rates.
Does Church Investors Fund make loans to any kind of church?
No. Church Investors Fund lends money to NAB churches and ministries for the acquisition, construction and remodeling of churches, parsonages and other projects.
Why should I borrow from Church Investors Fund?
Much of the interest paid on a loan with Church Investors Fund goes back into our churches and individuals within our churches. The funds loaned are made available because churches and individuals within our conference believe in investing for a cause that reflects their values. Many times, there are investors within the borrowing church that are loaning the funds.
How much of the construction cost can I borrow?
We lend up to 80% of the total cost of most projects, whether new construction or renovations.
Is there an origination fee on new loans?
Yes. The loan origination fee on new loans is 0.5%.
How long are loans amortized?
All Church Investors Fund loans are amortized for a maximum of 25 years.
How long is the interest rate locked in on a loan?
The interest rate is locked for each three or five year period. The new rate each three or five years is set by the prevailing rate at the time of renewal.
Do I need an appraisal for a loan?
Church Investors Fund is willing to waive the need for an appraisal on projects valued under $1,000,000 that are a normal loan to value ratio.
Is there a prepayment penalty for early pay down?
No. There is no prepayment penalty for early paydown of principal when the money is raised from within the church.
Do we need to prove our cash flow in order to get a loan?
Yes. Proven cash flow for the past three years is necessary to help us make an informed decision.
Do we pay interest and principal during the construction phase?
No. During the draw stage (construction) of a new project, only interest payments are made. At the completion of the project, the loan is modified to include principal and interest in the payment.
Does Church Investors Fund give personal loans?
No. We are limited to working with non-profit corporations as defined in Section 501(c)(3) of the Internal Revenue Code.
What should our church do if we are thinking about building?
It is important that the church contact professional counsel in areas of architecture, construction, finance, etc. as early in the process as possible. You should also contact us so that we can assist you and prepare in making the necessary plans.