Qualifying Your Financials
The first step in the process of securing funding for your project is to review and qualify your organization's financial statements. Here's what we need to for you to receive your FREE no obligation financial review:
Income & Expense Statement and Balance Sheet (2004 -2006
& Year-to-date)
Biographical Sketch of the Lead Pastor
Brief History of Church including attendance patterns for the past 5 years and projections for the coming years
Description of the Project and/or Current Indebtedness
Detailed history of Capital Funds Campaign You can fax, e-mail or mail this information to us. We can then pre-qualify your project and get a Preliminary Letter of Intent to Fund
and/or Funding Proposal from appropriate lenders. Financial Ratios
There are certain key guidelines that lenders typically use to rate a project for funding. If the Church's financial ratios don't fall within these limits, a Capital Stewardship Program may be required to improve the Church's financial health in order to qualify. Here are the most common financial ratios used by our enders:
Debt to Income – Maximum 30% of annual income
For example: If the Church's has $1,000,000 in yearly income, the most that can be used for debt service (loan payment) is $300,000.
Maximum Capitalization – 3.5 times annual income
For example: If the Church has $1,000,000 in yearly income, the maximum loan amount can't be more than 3.5 times that amount, or $3,500,000.
Debt Service – 1.0 to 1.25 times debt service
For example: If the debt service on a loan is $300,000 the church must have cash available that is at least 1.5 times that amount, or $450,000.
Loan to Value – Maximum 75%
For example: The Loan amount of $1,000,000 cannot be greater than 75% of the appraised value of the property, or $1,350,000. *Note: There are exceptions to every rule, and we can help you qualify for the best loan package for your needs! |
