WIF provides first mortgage loans to churches for capital projects, including purchasing property, new construction, renovations and expansion of churches, parsonages and other buildings and property, and refinancing existing debt. WIF does not provide loans for operating expenses.
Generally, no. The vast majority of WIF’s loans are first mortgage loans secured by all church property. However, WIF reviews each loan request on a case-by-case basis. Typically, these types of loans are short-term and often require a co-signer from a related District, Conference, or Association.
No, WIF provides “commercial” loans only to churches. WIF will consider, however, providing a first mortgage loan to a church to purchase a parsonage for a pastor.
Generally, a church can borrow up to three times its recurring annual tithes and offerings. For example, a church with $500,000 in tithes and offerings may qualify for a loan of up to $1.5 million. However, there are several other factors that determine the loan amount, such as attendance, property value, cash available for downpayment and operations, and the church’s ability to repay the loan. There is no maximum loan amount.
Every purchase or building project is analyzed on a case-by-case basis. WIF considers many factors when determining a required downpayment for a purchase or building project, including existing equity value in the church’s property and type of purchase or project. Generally, WIF requires 35-50% cash equity for raw or undeveloped land purchases, 20-30% cash equity for existing facility purchases, and 25-50% cash equity for renovations to existing properties.
WIF provides loan terms up to 30 years; however, most loan terms are 15-20 years.
WIF determines the loan rate based on current market conditions on a case-by-case basis. WIF provides competitive loan rates and terms for qualified church borrowers. The initial loan rate is fixed for three years and may adjust every three years thereafter to WIF’s prevailing loan rate based on market conditions at that time.
Yes. Generally, WIF requires a first mortgage on all church property and to be the sole provider of debt for the church. This ensures borrowers have the greatest flexibility when working with WIF, and churches will not obtain additional mortgage debt from other lenders.
Yes. WIF will establish a predetermined “Draw Period” to allow for construction draws to occur on the loan to pay vendors and/or contractors. When funds are needed, the church will complete a draw request, including an updated project budget, AIA G702/703 or similar forms, invoices, lien waivers, and updated pictures of the project. During the Draw Period, interest-only payments will be collected at the time of each draw, or no less frequently than monthly, from loan proceeds. Monthly principal and interest payments will commence after the loan is fully drawn and/or the project is completed, whichever occurs first.
Yes, WIF accepts partial or whole principal loan payments at any time, as long as funds are obtained from tithes, offerings, gifts, donations, or sale of existing property. However, WIF generally charges a 2.0% prepayment premium if the loan is refinanced by another lending institution.
Fees and costs vary based on the amount of the loan, type of project, and where the church is located. Generally, total out-of-pocket closing costs, such as title insurance, survey and filing fees range from 1.0% to 2.0% of the loan amount. Additionally, WIF charges a loan fee of .05% to 1.0% of the loan amount, and a $300.00 minimum fee to prepare the loan documents. For larger or more complex loans, involving multiple borrowers and/or properties, WIF may engage outside legal counsel to prepare loan documents, at the church’s expense.
Generally, WIF requires closing costs or any other “soft costs” to be paid by the borrower. However, this depends on several factors, including cash already invested by the church in the project or building purchase. WIF will consider financing closing costs on a case-by-case basis.
Upon receipt of a completed loan application (apply.wifonline.com/church-loan), we will typically respond in 7-10 business days with a loan proposal or a request for more information. Loan approvals are dependent upon several factors, and may take as little as a few weeks, or up to 4-6 weeks if a site visit by a WIF representative is required. Generally, WIF loans are closed and funded within 4-8 weeks of loan acceptance and approval.