Why Can’t My Church Get A Loan?
When you need to get funding for your religious institution and you go the standard route, you are nearly guaranteed to run into hiccups along the way. Although not publicized, most institutional lenders, such as banks, will rarely arrange loans for churches. Being a non-profit institution without any guaranteed monthly income, churches are of the lowest priority for large financial institutions.
This doesn’t mean your church shouldn’t qualify for a loan. You may have plenty of donations coming in and own equity on your property. The institution may have been around for decades, yet you are given the run around for months by banks – even Christian credit unions!
The same holds true for refinancing. We have worked with churches that have had an existing loan with a bank that had a five year term. The church had made all 60 monthly payments on time, have equity in their property – yet the bank would not refinance their balloon payment. Even if the bank does refinance, the church is often faced with having to refinance every 3, 5, or 7 years – including having to pay the fees and costs all over again each and every time.
What makes BDM Mortgage Services different is that our loans are based primarily on the church’s real estate. Naturally other items are considered (such as income), but the primary factor is equity. If you own sufficient equity in the church’s real estate, we will normally be able to arrange the loan. This is different from standard institutional lenders, since our loans are funded by private party lenders. These lenders can be individuals, pension funds, IRAs, and profit sharing trusts. This makes it possible for us to arrange a loan that a bank either can’t, or will choose not to fund.
In addition – receiving a loan from BDM only takes weeks, not months!
We don’t require personal guarantees from any members of the church. We don’t perform credit checks on any of the members, and the loan never shows up on any person’s credit report. We don’t require a resume from the pastor and there is no prepayment penalty if you choose to pay some of the loan off early. The interest rate is fixed and the loan is amortized.
Having a fully amortized loan means there will be no balloon payment. When your payments are complete – your loan is entirely paid off. You won’t have to worry about refinancing a loan that you make with BDM.
Contact us today to see how BDM can help you to get that church loan you were thinking was impossible to close!