General Loan FAQs

• What types of loans are available?
UPCI Stewardship Group offers a complete range of financing tools including permanent first mortgage loans (refinance, purchase, improvements), construction draw first mortgage loans (improvement/construction loan with guaranteed take-out to permanent), vehicles.   

• How long does it take to obtain a loan?
From the time a completed application and all supporting documentation are received, a loan can generally be approved within 10 to 20 business days, and funded within 30 to 45 days. This timeframe can vary based upon committee schedules and how quickly the escrow company completes its work. The key is to provide all requested documentation with your loan application, and stay in touch with the escrow company to make sure that its work is progressing on schedule.
   
• Is it possible to add to an already existing loan?
Generally, yes, but approval will depend on several factors including, most importantly, current loan rates and whether the loan documentation includes a Future Advances clause. Generally, an origination fee is charged and the interest rate will change on the entire loan. You do, however, save some costs.
   
• What are financial ratios?
When evaluating a loan application, UPCI Stewardship Group partners look at a variety of factors including two key financial ratios. These ratios are designed to provide an accurate picture of the church''s ability to service its loan.
1. The first and most important ratio is the debt service ratio. The annual debt service (all monthly payments x 12) is divided by the church''s annual operating income (regular tithes and offerings only, NOT designated income like missions, departmental, etc.).
2. The second ratio is the collateral ratio, also known as loan to value (LTV), which is calculated by dividing the amount of the loan by the value of all buildings and land.  
   
• Can we pay off our loan early?
Certainly, and we encourage churches to do so. As you pay off loans early that frees up your money to be used for another part of the ministry.
   
• Are there any other costs? 
more info to follow
   
• What happens if I miss a monthly payment? 
more info to follow
   
• Can we obtain a loan to purchase raw land? 
You can obtain a loan to purchase raw land.