Religious institutions want the freedom to create a space tailored to their congregation. New churches, or churches without the option of taking out a loan, look to individuals willing to take on the risk for the benefit of the church
Fredericksburg, VA (PRWEB) May 27, 2014
Griffin Capital Funding, a leader in church financing for over 15 years, is now helping churches with pastoral loans refinance under the Church name.
Griffin Capital Funding has been financing church real estate across the United States since 1999, and we asked one of their analysts Song Quichocho to tell us about a common problem that he sees with churches. “When a church is new or does not have a good credit history, individuals will often secure financing under their name so that the church can buy a building. The church will then pay that person who then makes the mortgage payments to the lender. There can be several problems with this: The individual may be at risk of damaging their credit if the church is unable to pay, the individual may reduce or eliminate their ability to obtain a loan because of the amount of debt they have, property taxes will generally have to be paid because the property is not owned by a 501C3 designated organization.
Griffin Capital Funding wants these churches to know that they can refinance these loans in the name of the church rather than the individual. Transferring the loan to the church’s name not only builds credit for the church but almost always makes the building property tax free.
Most churches in the above situation may not be aware they are able to refinance this way. There are churches paying high interest rates, depending on when the individual took out the loan and their credit history at the time. For example, Song Quichocho recently closed a loan in Virginia Beach, VA where the Pastor had taken a loan out in his name with an 8% interest rate. The church refinanced the note under the church’s name, bought an adjacent property and got cash out for improvements – all with a church loan at 4.6%.
When Song Quichocho was asked about this niche in church refinancing he replied, “This is not an uncommon situation. I talk to many churches, and they all want to own their real estate. Religious institutions want the freedom to create a space tailored to their congregation. New churches, or churches without the option of taking out a loan, look to individuals willing to take on the risk for the benefit of the church. A time comes when this is no longer the best scenario for the church, or for the individual. We want to help the church, and the person holding the current mortgage get proper financing.”
Those interested in learning more about financing for church properties can visit http://www.churchloans.net or call Song Quichocho at 540-736-7362 for more information.
About Griffin Capital Funding
Griffin Capital Funding has been serving churches for 15 years by providing church loans for the refinance, construction, renovation and purchase of almost any church building (churchloans.net). On average, Griffin provides over $100,000,000 a year in loans to churches. Griffin Capital Funding is one of the most well-known and respected church financing companies in the country. Griffin Capital Funding also offers loans to for profit businesses through the SBA 7A and 504 loan programs as well as offering hard money loans.