Heartspring Methodist Foundation offers loans as a service to the churches and affiliated agencies of the Texas Conference.
When considering finance options for your next project,we invite you to fill out a loan application. For answers to your questions and a detailed discussion of the specifics, please review our loan policies and requirements.
Types of Loans
Planning a new facility or expanding an existing structure? Develop a financial plan that will incorporate ministry, stewardship and fundraising while determining a “safe” debt level.
Rates are at historic lows. Refinancing your debt may lower your total interest expense, which frees up funds for ministry.
Line of Credit
Most churches do not receive their income in 52 equal offerings and may experience “lean” months, typically during the summer. A line of credit can provide a “bridge” during the low income months to ensure that all the ministries and programs of the church are funded.
Heartspring Methodist Foundation does not have a set rate for loans. We simply offer the very best rate we can for your loan. Because we are a non-profit lender, we do not have to earn a profit to pay shareholders (like a commercial bank) so our objective in lending is to cover our administrative costs. Consequently we can often offer lower rates than commercial banks or other lenders.
Factors that determine the rate we can offer you include liquidity, market conditions, size of loan, terms (fixed or floating rate) and collateral, among others.
Whether your project is large or small, we at Heartspring Methodist Foundation look forward to bidding on your loan. We can provide you with a checklist of information needed for a loan application.
Qualifying for a Loan
A loan to a United Methodist Church is essentially a cash flow loan. In the loan application, a church must show that it has adequate cash flow to make the payments over the life of the loan.
In the case of a major building program, churches typically conduct a capital campaign, usually with pledges collected over a three-year period. The results of the capital campaign, along with current financials, will determine a safe debt level. The Foundation would make a three-year interim / construction loan. At the end of the interim loan, the church would close on a long-term mortgage of seven to 20 years. Cash flow is the key. The annual income, along with a reasonable growth rate, must show the ability to fund the entire cost of the monthly payments along with the ministry and program of the church.
Contact us for assistance in conducting this analysis.
The Mortar to Mission bundled service package is a comprehensive program that combines a loan with a suite of services for your building project, including a capital campaign, stewardship education and endowment development for ongoing maintenance.