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Church lending
Hello,
The borrower is a new Buddhist non-profit organization (Church. Actually they call it temple.) This organization is planning to buy a property in NY or NJ to establish a place for retreats, different events and classes. Their teacher, Rinpoche, is well known in Europe, US, Mongolia, India and many other countries. Where to start, what documentation do they need, how much money do they need for down payment, etc. Thank you, Tatiana
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4 Replies
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Loans for churches. You can get up to 75% to 100% loan to value on churches. How much is the church? What is the loan to value. We are both lenders and brokers. Who owns the church. In wheelhouse or outside wheelhouse. Credit score?
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Hi Gustan, I have more questions to you. May we schedule a call for any day at your convenience? Thank you
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Tatiana, of course. Let’s set up a time to talk tomorrow late morning or early afternoon. However, in the meantime, can you please get me more information? Do they have a church now and are they buying a new church or are they adding on to an existing church? How much is the loan? What is the loan to value or how much is the church planning on putting down? Who are the guarantors of the loan? If you can answer these questions so I can do some legwork and get you something solid for tomorrow. My number is 262-627-1965 and website is http://www.gustancho.com and http://www.lendingnetwork.org. Thank you.
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Here is the question: How do you qualify for church loans? How does the mortgage process of church loans work? Here is the answer: It is important to remember that churches are seen as high-risk borrowers. Thus, the loan application process for a church involves pertinent steps and is a little different. This is the way it generally works:
Finances: When assessing the church, lenders look at its income, which is earned from donations, tithes, and other sources. They might ask for 3–5 years of financial records.
Credibility: Lenders focus on analyzing the church’s credit, and no substantial debts are left unpaid.
Security: The church property can be used to secure the loan.
Review: In the end, a lender offers the loan terms. After that, the mortgage process is almost identical to commercial property loans.
Most of the time, though, the church’s financial status and well-defined loan repayment plans determine the ultimate success of obtaining approval.