Church Loans

We offer a full range of loans:

• Permanent loans
  
• Construction loans
• Credit lines
• Vision loans
• PAC Startup Loans
• Facelift Loans
• Custom-tailored loans to fit your ministry needs
  

Visit our Church Loans page to learn more.

We offer a range of options based on the needs of your church. To learn more about loan options, read our resource "How to Shop for a Church Loan".

In the world of commercial lending, a long-term, fixed-rate mortgage loan generally does not exist. Lenders often use the term “fixed-rate” to draw potential borrowers to short-term loans. However, even though the rate is fixed, it is only for that short-term. At the end of the term, the full loan amount must be paid. This large final payment is called a balloon payment.

In contrast, we offer long-term permanent loans, which provide stability to churches and ministries. Our mortgage terms are up to 25 years, with rate adjustment periods of one, three, five, or seven years. We also provide interest rate caps on how high your rate can go—a guarantee you will not find with short-term mortgage loans.

A portion of your mortgage interest dollars go to the support of churches and ministries across the country, helping them to grow and advance the Kingdom. With AGFinancial, you have a partner in ministry whose values align with yours, and you can be assured that your interest dollars contribute to ministry growth.

With a construction loan, the total loan amount is approved at closing, and all documents are prepared and signed at closing. The church can then borrow up to the approved amount during construction by drawing funds from our office. These draws are reviewed by our Construction Loan Project Manager, who will ensure that the amount is in line with the work being completed. At the end of each month, the church is billed only for the interest due on the amount that has been drawn up to that point. Our Lender Representative may visit the site to meet with the owner and General Contractors and to help facilitate keeping the project on schedule and on budget. This service is included in the loan fees. When construction is done, the loan is transitioned over to a permanent loan with regular monthly payments.

We attempt to establish property values through tax records, insured values, real estate market analysis, and other methods. However, on new construction loans over $1 million or when the collateral ratio appears to be outside our policy levels, we may need an appraisal. In most cases, a summary appraisal is enough.

We will need a Schedule of Values form (firm cost estimate with specific line items for cost overruns and contingencies), architectural drawings, a floor plan with elevations, and other documents as needed.

We will use the district’s Articles and Bylaws.

As a rule, with complete information and documentation, a loan can be approved within 30-45 days and funded within 30-45 days following approval. This timeframe varies based on schedules and how quickly third-parties such as title companies and appraisers complete their work. Turning in all documentation with your application and staying in touch with the escrow company helps prevent delays.

Terms can be as long as 25 years. However, we often advise against such long terms because of their higher interest cost to the church over the life of the loan.