Loans through the MI Area Loan Fund✦

Karen Thompson, Sr. Director of Loan Services 

Ever wonder how hard it would be for your church to get a loan? Do you think the process will be difficult? Or that your church might not be eligible for a loan? If you have an existing loan at a bank, but don’t like that the interest rate on the loan keeps increasing, maybe it is time to call our office to discuss your options. The process is as easy as picking up the phone.

The Michigan Area Loan Fund offers mortgage loans and smaller unsecured loans to churches in the Michigan Conference and Michigan churches with historical ties to the denomination.

We received positive feedback from a church that recently worked with the Michigan Area Loan Fund to refinance an existing bank loan. The finance chair said, “the process was easy and it was a pleasure to work with our knowledgeable staff on the refinance.” This church lowered the interest rate on their existing loan and lowered their monthly payments, ultimately helping to meet their annual budget.

Our process works like this: we get a phone call from a Pastor or Finance Chair, and we talk about the loan that is needed. We ask a few questions regarding the project or refinance and about the church’s finances. An application is sent out with a request that financial statements be returned with the application. There is likely a need for a charge conference to authorize the loan and authorize certain individuals to sign loan documents. We review and ask a few more questions and then the loan goes out for internal approval. If approved, documents are sent to the title company and attorneys, this may include gathering the deeds and insurance information. The title company reviews the title documentation in order to provide assurance/insurance that the property can be used as security on the loan. A loan closing is scheduled at the church, and the agreements are completed and funds requested are provided. We communicate with the church as these steps are completed.

See? It really isn’t difficult; we walk alongside you as we go through the steps to complete the loan.