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Loan FAQ

How long has Heartspring Methodist Foundation been making loans?
The Foundation made its first loan in 2000. The loan fund was funded by individual members and churches in the Texas Conference that purchased Certificates of Participation. test

What types of loans do the Foundation fund?
The Foundation offers low-cost, competitive loans to churches in the Texas Conference for:

  • New construction
  • Repair and refurbishment of existing buildings
  • Land acquisition
  • Purchasing of office equipment
  • Refinancing existing debt

What are the basic loan terms?
The Foundation can lend up to 80 percent of a project’s total cost. The Foundation offers loan terms up to a maximum of 20 years. Interest rates are based on current market conditions and the financial strength of each individual church.

What about those hidden loan fees other lending institutions charge?
The Foundation does not charge any loan fees (e.g., origination fees, discount fees, points, loan processing fees, etc.). Also, there is no prepayment penalty for early principal reduction and/or payoff.

Is there a limit to the size of loan the Foundation makes?
Yes. The Foundation has internal limits regarding the size of loans we can fund on our own. For loan requests greater than $1 million, we will participate with a strategic banking partner to meld our knowledge of the Methodist loan market with the bank’s lending resources.

Does the Foundation provide construction financing?
In order to provide construction financing, Heartspring Methodist Foundation participates with other experienced financial institutions that have the resources to manage the special requirements characteristic of construction lending. In addition, our participation partners enable us to offer more sophisticated financing options, such as swaps, that can result in lower interest rates.

What does the Foundation require for collateral?
All loans are secured by either a first lien Deed of Trust on property owned by the church, or by assets that a church already has on deposit at the Foundation.

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