If you are planning for renovations for your church or looking to expand your ministry, you will have to ponder a church loan. And nowadays, this is not a matter of fact because numerous financial institutions and lenders are available who offer these loans. Usually, the requirements are to take church finance. It will be our point of discussion- the criteria for church loans. Let us check up on the loans.
What is a church loan?
A church loan is considered a commercial real estate loan. Following these, the loan requirements for church loans are the same as a commercial loans. Different types of loans are available when you take loans for churches. Let us understand more about the church loan requirements.
What are church loan requirements?
When you apply for a church loan, some specific information you should know. Let us discuss them.
Three years of financial statements
Financial institutions will check your three years church financial statement. If your church has appointed an accountant, providing the documents will be no issue. But if you do not have one, you may need to create the financial statements, which include the income statement for each year and the balance sheet.
Current property value
The lender will ask about the property value of the church. You should tell the lender what you believe the property to be worth and when the loan is approved, the lender will order an appraisal.
Membership of Church
You will need to provide your total membership of the church as the lender needs to know the size of your church. These members can be women, men, or children. They will be regarded as members only when they have met all the requirements.
Number of giving units
For the church, the giving unit is a person who has a job, attends the church regularly, and gives at least $500 per year. Here, the lender wants to know the church’s income and the number of giving the unit a church receives.
You will also be requested to provide the church’s history because it will give a better idea of longevity. Documents that may be required by the lender include the date the church was founded, as well as notable events in its history. Some specifics are a background of church leadership, church location, denomination, and more.
Information about the campaign
Lastly, the lender will ask about your campaign’s associates with the church that will play a role in funding the project. You have to provide some of the information like-
Expected time for the campaign
Amount of funds raised a percentage
How much is the campaign projected to raise by specific dates?
History of previous campaigns
This is a healthy discussion about the prerequisites for the loan requirements for the church. For your loan approval to be confirmed, you must be knowledgeable about all these factors. Loans for churches can be helpful for renovations and ministry. So, now that you have all the information, you can easily apply for church finance. But for that, you have searched for a reliable financial institute that can help you with the loan. Financing Solutions can be your helping hand. They have helped numerous customers to date. Visit their website to know more