Posted:
7/15/08
Additional Lending Information
- A lender’s title insurance policy is purchased for each loan
made. If the church desires an owner’s title policy please advise
us at the time of approval. The cost of an owner’s policy will
be significantly less if ordered at the same time as the lender’s
title policy.
- An origination fee of 1% is charged on all loans and is added
to the principal balance of the loan unless the church wishes to pay
this amount separately.
- Land loans are amortized over 10 years. The Fund will loan
up to 50% of the lesser of the cost or market value of collateral
for loans to purchase unimproved land.
- Loans on improved property are amortized up to a 20 years.
The Fund will loan up to 75% of the lesser of the cost or market value
of collateral for loans on improved property.
- Construction loans begin amortization after the project is
completed. Rates are typically fixed for a three-year period when amortization
begins. Rates are reviewed for possible change every three years. Construction
loans pay interest only during the time of construction.
- During construction, the rate on construction loans is ¼%
over the normal loan rate.
- A 10% contingency is required for all construction loans.
- The Fund may require an independent architect to perform several
site inspections during the course of construction.
- Beginning construction or moving equipment
to the site before closing may jeopardize the Fund’s priority
and preclude the Fund from disbursing loan funds until our priority
can be perfected.
|
