Frequently Asked Questions

Yes, commercial banks turn down churches all the time. Being turned down by a commercial bank is not the end of the world – it does not mean you do not qualify for a loan. Church capital specializes in assessing and meeting the loan needs of churches and non-profits by using other means of qualification to provide funding for your church.

We consider several factors when underwriting a church loan and different loan programs have different underwriting guidelines. Some of the standard considerations for a church loan are annual revenue, current debt levels, debt service coverage ratio, loan to value and cash on hand. We can also qualify a borrower based on the amount of equity in their property.

Debt Service Coverage Ratio (DSCR) refers to the church’s funds available to make the mortgage payment after covering all regular operating expenses.

Church Capital offers various loan programs such as New Construction, Purchase, Refinance, Renovation, Bridge Loans and Cash-Out Loans.

Typically, a church is required to put down between 20% – 30% of the purchase price as a down payment but in some cases, we may require more or less.

With a construction loan, the total loan amount is approved at closing and all the documentation is prepared and signed at closing. The church can then draw as much as is needed during the construction phase. At the end of each month, the church is billed for the interest on the amount that has been drawn to date not the total amount of loan. At the end of construction, the loan will typically convert to a permanent principal and interest loan.