Church Construction Loans

Griffin Church Loans offers church construction loans that are looking to build almost any type of building:

• Sanctuary,
• Family Life Center,
• Gymnasium… just to name a few.

Types of Church Construction Loans We Offer

We offer 4 types of construction loans for churches:

• Financing for Churches that already own property and want to build a new building or an addition.
• For Churches that want to buy land and build a new building.
• Financing for Churches that want to buy a property that already has a building on it and build an addition to that property.
• For Churches in the middle of a construction project and have run out of money and the project has stalled.

Benefits of Loans

Most of our church construction loan programs have the following benefits:

• Finance up to 100% of the project cost as long as the total project cost does not exceed 80% of the as completed value of the property. This is good for churches that do not have or do not want to use their cash but already own land that they want to build on.
• No Personal Guarantees are usually needed on our church loans.
• No audited financial statements are usually needed.
• Interest only payments during construction.
• Loan turns into a permanent loan on completion of the construction. So, there is only one loan closing, saving the church money.
• Low interest rate and great church loan terms.

What is the maximum amount of money a church can afford to borrow?

Underwriters take many factors into consideration when determining the maximum borrowing capacity of a church. A good rough estimate of the general range a church can borrow is to take the last 12 months of gross general tithes and offerings income and multiply that number by 3 times and by 5 times and that will generally give you the low end of what the church can borrow and the high end of what the Church can borrow. As an example if a church has gross income of $500,000 per year they can probably borrow between $1,500,000 and $2,500,000

Construction Completion of a Church in Progress:

Each year, we have the great fortune of working with thousands of churches and some of those are in difficult situations; one of the most difficult situations is a stalled construction project. Whether the church ran out of money, has cost over runs or their lender is refusing to honor the draw requests, we can likely help. Over the years we have provided financing to help finish churches that are unable to complete their construction project because of a lack of funding.

If your church is looking for a construction loan, we want to help, our advice is free whether we provide the financing for your project or not.