CGF - Loans

The CGF offers affordable, competitive interest rates. We are able to structure loans with flexible terms that are compatible and meet the financial needs and conditions of each individual borrower.

Loan Terms and Interest Rates

The CGF offers affordable, competitive interest rates. We are able to structure loans with flexible terms that are compatible and meet the financial needs and conditions of each individual borrower.

Long Term Building Loans

  • Loans are available for the purchase, construction, or improvement of a facility used in ministry and the purchase of land for future use.
  • Loan term is up to 30 years.
  • Maximum loan amount is $5 million.
  • Interest rates are determined based upon the financial strength of the borrower and the transaction.  
  • Loan interest rates are determined based upon the CGF's review of the loan application and the current market conditions.  Contact the CGF for more information regarding loan interest rates.  
  • Collateral is generally a first mortgage on the borrower's property.
  • Borrower must provide a minimum cash down payment of or hold an equity real estate position amounting to 15 percent of the loan amount.
  • The borrower is responsible for normal real estate closing costs.

Short Term Building Loans

  • Loans are available for facility repair, restoration, and improvement and equipment purchases.
  • Loan term is up to five years.
  • Maximum loan amount is $200,000.
  • Interest rate is fixed for term of the loan.
  • No collateral – all loans are unsecured.
  • There may be a minimal fee assessed.  

Special Loan Programs

  • Loans are available for improvements to facilities damaged by natural disasters, to improve energy efficiency, and to make facilities more handicapped accessible.
  • Loan term is up to 25 years.
  • Maximum loan amount is $100,000.
  • Interest rate is fixed at 3 percent for the first five years of the loan.
  • Collateral is a first mortgage on the borrower's property.
  • While there are no fees, the borrower is responsible for normal real estate closing costs.

This information is only intended to be a summary of the terms available. Actual terms will be established by the loan documents.

Construction Lending

In addition to offering traditional long term financing for the purchase and improvement of existing buildings, we also have a highly competitive and easy to use construction lending program. Some of the key features of this program are:

  • Automatic conversion of the construction loan into a long term loan at completion of construction, eliminating the need for two loan closings.
  • Interest-only payments during the construction period.
  • Loan advances are made only for what is needed during construction, which reduces costs since interest is only paid on the amount borrowed. The entire loan balance does not have to be borrowed at the time the loan is closed.
  • The interest rate is fixed at the time of loan approval not only for the construction period but for the long term loan as well, for up to five years, which provides protection to the borrower from a potential rise in interest rates.

Loan Guidelines

The following is a summary of certain guidelines established by the CGF for use in considering the Construction Lending approval of loan requests. The summary is not all-inclusive and final loan approval may include the consideration of other factors at the discretion of the CGF loan approval authorities.

  • The congregation should be incorporated or in some other respect a legally recognized entity and must be the owner of the real property that will serve as collateral for the loan.
  • Eligible borrowers are as follows:
    • A congregation organized as an RCA church and that has held worship services within the RCA for at least three years
    • Any classis or regional synod of the RCA
    • Other agencies or affiliates of the RCA that are authorized by and subject to the general oversight of a regional synod or classis
  • The congregation should generally have a history of stable or increasing attendance, membership, and income over the past three years.
  • Generally, total debt service should not exceed 25 percent of the congregation's qualifying income.
  • The loan amount should not exceed three times annual congregational income.

Apply for a Loan

Loan application requests and questions regarding CGF loan programs can be directed to Robert Carlson, executive director, at (616) 541-0907 or bcarlson@rca.org, or to Pamela Goslinga, vice president, at (888) 722-4958 or pgoslinga@rca.org.

 

This is not an offer to sell our securities to you and we are not soliciting you to buy our securities. We will offer and sell our securities only in states where authorized. The offering is made solely by our Offering Circular. The purchase of our securities is subject to risks, which are described in our Offering Circular. We do not currently offer securities in all states. See How to Invest for a list of states in which we are authorized to sell our securities.

Not FDIC or SIPC insured • Not a bank account • No RCA guarantee • cgf@rca.org