When a loan is more than a loan?
Ailee Taylor, wife of church planter Derrick Taylor, explains their experience with BFI’s loan program in securing their church building in Staunton Illinois.
What are the benefits of a BFI loan
BFI provides low cost, easy to apply for church loans for construction or other capital projects. In most cases, the loans are for a 20 year amortization and no “balloon” payment is required (i.e. permanent financing). BFI is currently offering a rate of 5.5% fixed for 5 years.
How are BFI loans financed?
Most BFI loans are financed by bond investments. Simply put, God's people (individuals, churches) purchase BFI bonds, providing funding to the borrowing church or organization. As the loan is repaid, bond investors receive a fixed rate of interest. This process creates a win-win for the Kingdom! God's people have the opportunity to invest in Kingdom growth and the borrowing church can take heart in knowing that church funds are staying within the Church.
What are the loan criteria?
All BFI loans are secured by a first position mortgage on church property. We use a 50% loan to value maximum ratio (i.e. the church must have property that would cost twice as much as the loan to replace) and a 25% debt to income ratio (i.e. the church must have unrestricted gift income sufficient that the loan payment does not consume more than 25% of the offerings).
How long does the process take?
The BFI loan committee of the Board of Trustees typically meets to consider giving conditional approval approximately two weeks after receipt of loan applications. Following approval, BFI can typically close a loan within 30-45 days.
"If we are going to pay interest on a loan, I would much rather that interest support other Baptists and Baptist Churches."
Watch BFI Loan testimony from First Baptist Church of Waterloo.