The Loan Committee of the Foundation's Board of Directors and staff give careful consideration to each loan applicant's qualifications. The prudence of applied standards for every applicant results in responsible use of invested money as well as safe debt levels for borrowing churches.
Mortgage loans for amounts of more than 10 percent of a church's property value must have the approval of the Pastor, District Superintendent, Charge or Church Conference, and District Board of Church Location and Building in compliance with the Discipline. The written evidence of these approvals is required as part of a mortgage loan application.
It is the policy of the Foundation to secure a loan with a first lien on the property of the borrowing church. Required documentation may include:
- Real Estate Lien Note and Deed of Trust
- Lender's Title Policy
- Fire and Hazard Insurance with an 80% co-insurance clause naming the Foundation as lender/loss payee
- Survey
- Evidence of owned property value
- Appraisal of any property to be acquired
- Evidence of pledges designated for the project
- Copy of real estate contract for sale or purchase of property
- Other documentation required by the Loan Committee
The borrowing church will pay all costs including attorneys' fees, escrow fees, filing fees, and other costs associated with a loan.
For more information, contact the Foundation.
