A Loan Broker May be Able to Get
the Church Loan
A loan broker is often times used by a church
that is having
difficulty getting a church loan for the amount of money that
they need, be it church
construction financing, a bridge loan or church loan.
This may be because the church loan is greater than
what the church can afford to borrow.
It may be because the church needs some help from a
church loan broker in putting
together the information and presenting it to the bank in the
most coherent fashion. A loan broker may provide a service
to the church by offering to shop several
church loan lenders from a
single application to the broker. A loan broker can
provide a valuable service to the church desiring to get a
church loan or
Unfortunately, this is a field that has more than its fair
share of cheats and con artists. If you use a broker ( and
there are many good ones) check out their references well.
Loan brokers get paid to find you a church loan; fees typically from 1% of
the church loan to whatever the market will bear (some try to
charge as much as 10%). Make sure you understand in
writing what the broker gets paid, how (and who) pays them and
when. Some brokers get paid by the lender, make sure they
disclose this and negotiate fees accordingly.
NEVER give a broker
up-front money to secure a church loan. Not Ever,
Logic & wisdom says that if the loan broker
really thought they could get you a church loan, they
would invest time and effort in you in the expectation of a
commission. If they require money up front, they probably
don't have the expectation of closing that they would like you
to believe. If you
are having a hard time getting the church financing you need,
you may want to consider a built-to-suit lease with purchase
option, like the one offered through Build to Minister
Program as an alternative to church financing.
carefully how much the loan broker is charging to help you
secure your church financing. A church loan is expensive
enough without adding too much additional cost in loan broker
fees to the cost of the building program. Most brokers,
dealing with churches that have a reasonable chance of obtaining
financing, will charge around 1-2% in fees, depending on the
amount of work they have to put into your loan in conjunction
with the size of the loan. Smaller loans can expect to pay
higher fees as a percentage of the loan.
sure the loan broker only earns a fee on a loan he or she gets
for you. Read the agreement carefully so you don't end up
paying a broker for a church loan you were able to get on your
An option to using a loan broker might be a
construction consultant who may be able to incorporate
preparing a financial package and arranging for some
introductions to church friendly lenders as part of a larger
scope of services. A church building consultant may be
able to assist in obtaining a church loan without charging you a
brokers fee or taking compensation for helping you
get the church financing you need.
Ultimately, the church needs to carefully evaluate the value and
cost of services and select a loan broker only after due
diligence and developing a complete understanding of the costs
Written by an experienced church
Preparing to Build provides
your church valuable, real-world insight based on real-world experiences and
input from hundreds of church building projects.
"Preparing to Build was an
incredible value - just a wealth of
information. The truth & his experience
jump off the pages."
Dwight VanDaveer, Engineer & Church Building Committee Member
With over 160 information packed pages, this
book will explain the process of building and how equip the saints for the
work of building the church in an effective manner that will reduce the
church's cost, risk and effort. Click for more information or to purchase.