20 to 30 year loans which allow the church to decide if they want a quarterly, annual, 3 year, 5 year, or 7 year rate adjustment period. The rate is fixed over the desired period and is then reviewed for a possible adjustment. Generally, there is both a period and lifetime interest-rate ceiling at which the rate cannot go beyond. The rates available on these loans are generally a bit higher then those available on balloon loans but the church avoids the costs associated with refinancing when the balloon is due. In most cases these loans carry no pre-payment penalty if paid-off with church capital or refinanced with the same lender. Borrowers should expect to pay between 1.5 and 2 points to acquire this type of financing.

3 to 5 year fixed rate, balloon, loans which give the church the option of 20 to 30 year amortization periods. These loans are best suited for churches who want to take advantage of low interest rates and plan to retire their debt in 3 to 5 years through capital campaign gifts or other reliable means. We also recommend this type of loan for churches that are planning to renovate (or do improvements to) their facility in 3 to 5 years and will need to refinance and obtain additional funds at that time. Such financing is also appropriate for churches who have (or are planning) to sell their existing location but have yet to receive the monies from the transaction. The interest rate available on these loans will typically be the lowest available and borrowers should expect to pay the lender 1 to 1.5 points for the financing. These loans generally only carry a pre-payment penalty if refinanced by an alternative lender.

7 to 10 year fixed rate, balloon, loans which give the church the option of 20 to 30 year amortization periods. We recommend intermediate-term financing to churches that like the safety provided by lengthy fixed rate funding and still want a competitive interest rate. These loans are great for churches that do not have plans to relocate within the next 3 to 5 years and feel that they will not need any financing for renovation or improvement purposes in the near future. Typically, the interest rates on these loans will be 1 to 2% higher then those available on short-term financing and the church should expect to pay the same loan points and pre-payment penalties as those mentioned above.

Through our lending partners we are able to provide construction loans which convert to permanent financing upon completion of construction. This allows churches to avoid the process of seeking financing from multiple lenders, enables them to lock in guaranteed rates and terms prior to construction, and reduces the time spent preparing a loan package since only one set of documents are necessary. During the construction period the church makes interest-only payments based on the funds which have been disbursed. After all church construction is completed the construction loan is converted to permanent financing with the churches payment being based on the agreed upon terms prior to the construction period. Combining these two forms of funding means there is no re-qualifying, re-appraisals, or any major additional closing costs.

Often times churches need more construction financing then is available through traditional means to meet both current and long-term congregational growth. Church 1st has a program specifically designed for churches that need to maximize square footage while still being able to financially qualify. The program includes architectural and engineering services, development services, accounting services, project management, complete ground up construction, a capital campaign, as well as construction and permanent financing. The program is unique in the industry since the church does not pay interest during construction. This is extremely helpful for churches moving to a new facility who cannot afford double payments while their new facility is under construction. Churches can generally put as little as 10% cash down and can qualify for 30% to 40% more funding than what would be possible through a traditional lender. To qualify for the program a church must meet at a minimum the following requirements; own land or be in the process of purchasing land, have annual income that exceeds $60,000, and be in existence for more then three years.