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 General Information on Loans On September 1, 1954 the Revolving Building Trust, a Loan and Investment Fund, came into existence. It began with an initial gift of $88,000 from the Revolving Building Fund of the Baptist General Conference. The formation of the Revolving Building Trust challenged conference church members to invest their reserve funds in the Trust, to be made available to Conference churches as 1st mortgage loans for the financing of new buildings. In 1989, The BGC Cornerstone Fund was established as an Illinois not-for-profit corporation, taking over the operations of the Revolving Building Trust. Since its inception, the BGC Cornerstone Fund and its predecessors have financed more than 600 church building/remodeling projects within Converge/BGC. What types of projects does the BGC Cornerstone Fund finance?
What does a BGC Cornerstone Fund loan look like? Loans are made on a first mortgage basis and are amortized up to 20 years. Loans to purchase land are amortized over 10 years. Amortization begins and rates are typically fixed for a three-year period at the time of the final loan disbursement. Rates are adjusted every three years during the term of the loan. Churches in existence for less than 10 years qualify for a lower interest rate. The maximum loan to value is (1) 50% of the lower of cost or appraised value on loans to purchase land and (2) 75% of the lower of cost or appraised value on other non-land purchase loans. Areas Considered in Lending Decisions It's simple...the Fund looks at 3 areas when making a decision whether to finance a loan.
If you are thinking about or planning a project we'd love to talk to you! Please contact Vince Moxon at 1.800.323.4215 x3207 or vmoxon@baptistgeneral.org. If you are ready to begin the application process, click here for our Loan Application. |