Church Lending
Wiseman Capital Group is very excited to introduce our Ministry Loan Program. If you are a church/organization looking for financing please review the information below to see if we can be of assistance.
Eligibility
- Each church applying for financing will be required to provide a statement of faith/core values/beliefs for organizational membership before we can process their loan.
Loan Amount
- All requests for financing should not be greater than 3 times the average annual general fund income.
- The real estate used as collateral must meet loan to value guidelines based on our lending program: up to 70% commercial, up to 50% undeveloped land, up to 40% camp and conference, and up to 65% educational.
Capacity
- The church/organization’s total debt payments for loans and leases should not exceed 30% (15% for schools) of the average general fund income.
- The church’s/organization’s general fund annual net income should be able to cover at least 125% of the new and existing aggregate annual debt and lease payments.
Additional Guidelines
- The church/organization must have a minimum 5 year financial history.
- At least three years of stable or growing church attendance history.
- Excellent payment history with current lender (if applicable).
- Debt Service Ratio -30% or less (based off of Qualified Income: UNDESIGNATED Tithes and Offerings)
- Debt Coverage Ratio - looking for 1.25 or greater (also based off of Qualified Income)
- Loan To Value - cannot exceed 70%
- If you are requesting a construction loan we will require:
- A minimum 25% borrower contribution on construction loans and 30% down payment on purchases
- Guaranteed maximum price contract,
- Payment and performance bond
- Recording of loan documents before ground breaking
- 100% banking relationship is required if the loan is made.
Terms
- Variable Rate (1st trust deeds) 2 points origination
- Variable Rate (2nd trust deeds) 3 points origination
- Fixed Rates (3 yr and 5 yr balloons offered
- Loans less than $1,000,000 we will charge anywhere from 2 to 4 points origination
- Loans from $1,000,000 to $5,000,000 we will charge anywhere from 1 to 3 points origination
- Loans over $5,000,000 we will charge 1 point orgination
We also offer equity credit lines in the 1st and 2nd trust deed position and unsecured term loans. We will charge anywhere from 2 to 3 points origination. All loan fees are at the sole discretion of Wiseman Capital Group and are subject to change without notice. Please note: Credit lines cannot exceed 10% of the ministry’s annual income, and unsecured term loans cannot exceed 20% of the ministry’s annual income.
For any potential loans, please email us or fax us three (3) years income/expense statements and balance sheets (2007 - 2009). In addition, we will need a copy of the church’s Statement of Faith in order to establish eligibility for the ministry. If the church belongs to a specific religious denomination, please let me know as they may already be eligible for financing. Please include the loan amount, down payment amount / borrower’s contribution amount, etc when submitting your loan request.
