What Will It Take for Your Organization to Get a Loan Today?

by Mike Boblit

February 22, 2016

We’re all too aware that the rules of the financing game changed forever after the Great Recession. It simply became harder for churches and other ministries to qualify for loans. Rubber stamp for approved ministry loan

What about today? With the economy gaining steam, are the rules still changing? If your organization is looking for a loan, here are some things you should know.

How do you qualify?

The answer to this question is far more complex than it was before the Great Recession. For starters, three things need to be true if you want to qualify for a loan.

  • One, your cash flow must meet specific requirements.
  • Two, you’ll need sufficient collateral.
  • Finally, the character of your leadership needs to be strong.

To better understand what’s required in these three areas, check out What It Takes to Qualify for a Loan.

What will it cost?

The cost of a loan is no simple matter either. Besides the interest rate you’ll pay, there are variables like appraisals, loan fees, cost of required improvements, cash required at closing and others. Since each loan scenario is different, the kind of costs you can expect and the amounts of those costs vary widely. Step one is to sit down with a ministry financing expert who can walk you through the process.

What about refinancing?

You’ll need to refinance your ministry loan soon. You’re making monthly mortgage payments on time and always have. So refinancing will be a slam dunk, right? Nope. Refinancing means requalifying for a new loan. And that means your numbers—like cash flow, cash reserves and collateral—have to add up. If they don’t, you could be in for a big surprise when you contact your lender about refinancing. To learn more about getting ready to refi, take a look at Refinancing: Do Your Numbers Add Up Today?

One thing that hasn’t changed about ministry financing is that it takes considerable time and effort to secure a loan. ECCU’s financing team is always available to help. You can contact them at 800.921.1130, ministry@eccu.org or learn more at www.eccu.org/ministrybanking/lending.

Category: Ministry Matters