For every church that we close a loan for that is referred to us by you we will pay a generous fee per referral or work with you on points. Anyone can participate; you do not need to be a church to earn referral fees or points. This is a great way to earn additional income and help churches find the financing they need.
We are a full service organization and an important part specializes in church financing and securing loans for other nonprofit organizations. For churches, trying to find church financing can be a frustrating and arduous ordeal even for the astute borrower. Finding a lender with the proper mix of interest rates, financing terms and dollar amounts can be time consuming and often an effort in futility.
With many years of experience in the financial market place, we have the resources amid expertise to get the church financing that a church is seeking. We explore every possible avenue of finance in order to find the most workable solution to the church’s unique borrowing needs.
We operate on a national basis, which gives us access to a large network of church lenders across the country. We offer 15, 20, 25 and 30 year fully amortized church loans with no balloon payments and low fixed interest rates. We secure loans for churches doing new construction, major renovation, purchasing existing facilities, land acquisition and the refinancing of existing church loans. Having served more than 30 denominations and hundreds of churches through the years, our talented staff has the diverse experience and resourcefulness needed to help through the church financing maze. You will be astonished at how fast and efficiently your loan application will be processed. There has never been a better time to apply for a church loan; interest rates are low and can be amortized for as long as 30 years. Many lenders are not making loans and of those that do even fewer are willing to help churches. In as little as 24 hours we can analyze a request. If you know someone who is looking for a church loan then you have come to the right company. The capital sources that we work with have provided church financing for projects ranging in size from $75,000 to $24,500,000. If you know of a church looking for a loan to purchase, refinance, renovate or construct a building we want to help them get financing. We offer a number of different church financing programs to meet the churches needs. Even if they have been turned down by a bank we want to talk to them. We are often times able to be more creative than a traditional bank. We understand that churches are different from for profit businesses and their finances are unique, many lenders simply do not.
It is often difficult for a church to determine how much they will qualify to borrow and underwriting guidelines vary from loan program to loan program so we have created some pretty easy to follow guidelines that will give you a good idea of when a loan is worth submitting to us.
If the church can say yes to the following questions they should apply for a loan:
If the church is looking to borrow less than 6 times its annual gross income.
For example if the church has gross income of $500,000 and you are looking to borrow less than $3,000,000 then you should send the loan in to us.
If the loan to value of the property is 90% or less then you should send in the loan.
If the church has been in operation 2 years of more you should send in the loan.
Although most of our loans are done without personal guarantees there are occasions where a personal guarantee can add strength a loan that would not normally work. So even if you answer no to the above questions but feel you can provide strong personal guarantees for the loan then it may be worthwhile sending in the request.
Before applying for a loan you want to make sure that you have the last 2 or 3 years financial statements available for the church. We do NOT need any personal financial statements or tax returns.
THREE THINGS YOU MUST KNOW TO QUALIFY FOR A CHURCH LOAN :
1) Your church must almost always be in business a minimum of 2 years to get a loan.
2) You should have good income and membership trends for the past 2 years or a good explanation as to why the trends are negative.
3) You must show the ability to make the loan payments on a historical basis. In other words, the new loan can not generally be based on the premise that the church will make more money. Although this information is helpful, it can not be the reason why a loan would be made. Read the big underwriting bonus below for more details
The church DOES NOT have to have enough net income to show that they can make the payment, many factors are taken into consideration to determine if a church can afford a payment. Some of these factors are: depreciation, non recurring expenses, capital expenditures, current loan payments. So do not let a poor bottom line deter you from applying for a loan. Refer to the Easy Church Guidelines above to determine if you should submit a loan and remember, if in doubt, send it to us… we will analyze it free of cost and without obligation.
What you can expect from us: - Absolutely free and no obligation quote (No Upfront Fees) - 24 hour conditional approvals - No personal guarantees - Quick closings We understand how churches raise and spend money; we understand that churches have a great deal of discretion over their expenses. So while a traditional lender may look at a Church Financing request and determine that the church can not afford the loan payment based on the net income of the church, our capital source will take the time to understand which expenses are discretionary and what should be added back to the net operating income of the church to help service the Church Loan debt payments. Church Financing is a very specialized business and most traditional lenders do not understand how churches operate, they want to underwrite a Church Loan using the same methods they use for an apartment building or gas station or any other type of business loan, in most cases, this does not work. Our capital source is the most knowledgeable and highly trained Church Financing staff around.
Tenzer Partners would like to close your church loan; our team has seen it all. Whether you are looking for a church loan to purchase, renovate, refinance or construct a new building we will have a loan for you. In today’s difficult economic times there are few lenders offering loans and of those that are, very few are offering church loans .
BROKER REFERRALS WELCOME * *
WHAT MAKES US DIFFERENT :
No personal guarantees on church loans . Very few of our church loans require personal guarantees.
High loan to values . Many of our church financing products go up to 80% of the real estate value. We even have products that allow the church to borrow up to 90% using a first and second trust loan.
No CPA prepared financials
No Tax returns.
NO UP FRONT FEES. We will do our best to analyze your church loan request in
24 HOURS or less and give you a no cost, absolutely no obligation written offer.
Provide the most creative, aggressive, lowest priced church loan products available in the marketplace.
We are dedicated to providing world class customer service. We have more dedicated church financing analysts than any other company in the country that we know. Often times when you go to a bank you talk to someone that does not understand church financing , they want to treat a church just like any other business. A church is different from a traditional business, the way they raise and spend money is different, the impact they make on their community is different, and often times they simply give away their money, something a traditional business does not do. With these factors in mind a church should be underwritten based on what it can afford to borrow not how much money it had left over at the end of the year.
Our church loan rates are some of the lowest available in the marketplace and our fees are more than reasonable. We have church loan programs that are designed for specific purposes:
Church loan for purchasing real estate – With loan to values up to 80% and combined loan to values up to 90% we try to limit the down payment a church needs to as little as possible.
Church loan for refinancing real estate – If you are looking to decrease the interest rate on your current loan or have a balloon note we can provide a quote in 24 hours or less.
Church loan for the renovation of real estate – If you’re church is looking to expand a property that you currently own we can provide the financing in the form of cash out for small projects or draws as needed for larger projects.
Church loan for the ground up construction of real estate – If you are looking to build a new sanctuary, day care center, family life center or any other building we can provide the financing as a line of credit where you pay interest only payments during construction and the permanent financing when the project is completed. With one closing we keep your costs to a minimum.
With over 25 different loan programs available and a dedicated staff of analysts we are confident that we can provide the right type of church loan to meet your needs.
UNDERSTAND THE CHURCH LOAN PROCESS AND GET TO KNOW YOUR TEAM :
Throughout the process of your church loan their will be 3 people from our team working on your loan. The church loan Analyst is the first person, they will analyze the request, understand the needs and design a church loan catered to your situation. After designing a loan to meets your needs, the analyst will present their recommendations to you explaining the pros and cons of each program and present a written proposal to you for approval. Once you approve the proposal, the analyst completes the credit write up and submits the proposal to an underwriter for approval. Once your loan is approved it is assigned to a processor to close the loan. The processor gathers whatever remaining documents are needed to close the loan and schedules the closing of your church loan .
If your church is looking for a loan to purchase a new church building, renovate a parsonage, or construct a new family life center we promise to provide world class customer service and church loan products that meet your needs.
Many times a fast growing church will find itself in a situation where it can not afford to purchase a large enough building to house its current congregation or the expected growth of its congregation in the near future but it finds itself in a location that is too small and stifling growth. Churches that find themselves in this situation often end up renting a larger facility and attempting to save money until they can purchase or build a facility of their own.
There is another solution that is often overlooked:
Leasing with the option to purchase a building is a great way to get the space you need and “save” your down payment towards the purchase of the property. Although there are many ways to structure a lease to purchase option a church should keep several things in mind:
1) You generally want to determine the purchase price of the property as a part of the lease purchase agreement.
2) You want to determine how much of each monthly payment is going towards the purchase price of the building.
3) You want to determine what happens when you make improvements or repairs to the building. Do those improvements and repairs go towards the purchase price?
4) What time frame you have to complete the lease purchase agreement, the longer the better.
5) Ask for partial seller held financing to be a part of the purchase when the time comes. Don’t get too aggressive here, ask them to hold a second trust of 10% or 15% when the time comes to complete the purchase.
You may not get everything you want in the lease to purchase agreement but understanding what can be done is a vital step in the negotiation process.
For more details on this or if you are looking to purchase or refinance a building please do not hesitate to call me.