The decision is ours
Your church is not sent to an outside credit committee that has never financed a congregation. The people who evaluate your church are the people who fund it.
Summary
Griffin is the lender on private money church loans.
We fund from our own capital, we hold the loan, and we service it ourselves. We lend up to 60% of value on private money, and we do not generally sell these loans.
Private money is designed as a step, not a destination. It stabilizes your church now so that you can move into conventional financing later, where well-qualified churches can borrow up to 80% of value. We will tell you which path fits your church before you spend anything.
Direct lending
What does it mean that Griffin is the lender on private money?
We hold the loan
We do not generally sell our private money loans. In most cases the lender who approved your church is still the lender years later.
We service the loan
Payments, statements, questions and payoffs are handled by Griffin, not by an outside servicer your church never chose.
You can reach the decision-maker
Because we still hold the loan, questions about your church's situation go to the people who made the decision, not to a call center handling a file they inherited.
Founder
John Berardino on why Griffin lends its own money
John Berardino founded Griffin in 1999. Griffin has closed more than 2,000 church loans and over $2 billion in volume.
Fit
When is a private money church loan the right answer?
Most churches we work with have good credit and qualify for conventional financing. Private money exists for the churches that do not, and for situations where timing matters more than rate.
Churches we see most often on this program:
- Churches in or coming out of bankruptcy
- Churches facing foreclosure
- Churches with unresolved IRS or tax issues
- Churches negotiating a discounted payoff on an existing note
- Churches with a balloon payment coming due
- Churches turned down by banks and denominational lenders
- Churches that need to move quickly on a time-sensitive opportunity
If your church is not in one of these situations, conventional financing is almost certainly the better answer, and we will tell you so.
Comparison
Private money and conventional financing: how they differ
Griffin offers both, and they work differently. The most important difference is how much you can borrow against the value of your property.
| Comparison point | Private money | Conventional church financing |
|---|---|---|
| Who is the lender | Griffin. We fund from our own capital. | Lenders that specialize in church credit. Griffin structures and places the loan. |
| Maximum loan-to-value | Up to 60% | Up to 80% for well-qualified churches |
| Who it is for | Churches that do not currently qualify conventionally, or need to move quickly | Churches with stable finances and clean credit |
| Cost | Higher than conventional financing | Lower |
| Term | 3 to 5 years, interest only | 5 to 30 year term, with amortization over 15 to 30 years |
| Speed | Faster. Some closings have happened in as little as two weeks once due diligence was complete. | Typically 45 to 60 days |
| Who services the loan | Griffin | Varies by lender |
| Personal guarantee | Case by case | Almost never required on loans above $500,000 |
| Available | Most parts of the United States | Most parts of the United States |
Private money
- Who is the lender
- Griffin. We fund from our own capital.
- Maximum loan-to-value
- Up to 60%
- Who it is for
- Churches that do not currently qualify conventionally, or need to move quickly
- Cost
- Higher than conventional financing
- Term
- 3 to 5 years, interest only
- Speed
- Faster. Some closings have happened in as little as two weeks once due diligence was complete.
- Who services the loan
- Griffin
- Personal guarantee
- Case by case
- Available
- Most parts of the United States
Conventional church financing
- Who is the lender
- Lenders that specialize in church credit. Griffin structures and places the loan.
- Maximum loan-to-value
- Up to 80% for well-qualified churches
- Who it is for
- Churches with stable finances and clean credit
- Cost
- Lower
- Term
- 5 to 30 year term, with amortization over 15 to 30 years
- Speed
- Typically 45 to 60 days
- Who services the loan
- Varies by lender
- Personal guarantee
- Almost never required on loans above $500,000
- Available
- Most parts of the United States
Read the loan-to-value row carefully. The 80% figure applies only to conventional financing for well-qualified churches. On private money, the ceiling is 60% of value. If your church needs more than 60% and does not qualify conventionally today, private money will not close the gap on its own.
More About Private Money Church Loan vs. Conventional Church Loan
Path forward
Private money is a step, not a destination
Most private lenders will not tell you this, so we will: a private money loan costs your church more than conventional financing, and it is not where your church should stay.
Our private money loans run three to five years, with interest-only payments. That structure is deliberate. It is designed to carry your church through a difficult period, not to be a permanent home for your mortgage.
The purpose of that time is to resolve whatever is currently blocking conventional financing, so that your church can move into a longer-term loan on better terms.
Because Griffin holds and services your private money loan, we see your church's record as it develops. When the time comes to look at conventional financing, that conversation starts with people who already know your file.
Our loan is meant to provide an opportunity for the church to correct the issues that are preventing it from qualifying for a conventional loan.
Prepayment terms vary by loan and are set out in your loan documents.
Trade-offs
The trade-offs, stated plainly
Private money solves a problem that conventional financing cannot solve today. It does that at a cost, and you should weigh it before you apply.
It costs more.
Private money carries a higher rate than conventional church financing.
It lends less.
Up to 60% of value, against up to 80% conventionally for well-qualified churches. Your church needs meaningful equity.
It is interest only.
Your payments cover interest, not principal. The balance at the end of the term is what your church borrowed at the start.
It has a defined end.
The term is three to five years. Your church will need to refinance or pay off the loan at maturity, so there needs to be a realistic path to that point.
It is a tool, not a plan.
If your church has no realistic path to resolving the underlying issue, a private money loan postpones the problem rather than solving it. We will say so if that is what we see.
Process
What happens after you apply
1
Apply.
One page. It takes about two minutes and there is no cost to apply.
2
We respond.
We give you a written answer within one business day of receiving your application.
3
Document review.
We ask for three years of financial statements and current year-to-date statements. Churches that send complete documents move materially faster than churches that send them piecemeal.
4
Due diligence.
Appraisal, title and the property and legal review. This is the part of the process neither of us fully controls, and it is usually what determines the closing date.
5
Closing.
Griffin funds, holds and services the loan.
A realistic word on timing
Some Griffin private money loans have closed in as little as two weeks once due diligence was complete. That is not a typical timeline and it is not a commitment. How quickly your church closes depends on appraisal and title turnaround, the complexity of the situation, and how quickly your church can produce documents.
We do not guarantee approval, and applying does not commit your church to anything.
Role
Is Griffin a direct lender or a broker?
Both, depending on the program. We tell you which one applies to your church before you spend anything.
Private money.
Griffin is the direct lender. The loan is funded from our own capital, we hold it, and we service it ourselves. Available in most parts of the United States.
Conventional church financing.
Griffin structures your loan and places it with lenders that specialize in church credit. We are your specialist and your advocate through underwriting and closing, but we are not the lender of record on these programs.
FAQ
Questions churches ask
Is Griffin Church Loans a direct lender?
On private money, yes. Griffin makes, holds and services its own private money loans to churches in most parts of the United States. On conventional programs, Griffin structures the loan and places it with lenders that specialize in church credit.
How much can a church borrow on a Griffin private money loan?
Up to 60% of value. Conventional financing for well-qualified churches goes up to 80%, but that higher figure does not apply to private money.
Does Griffin sell church loans after closing?
We do not generally sell our private money loans. Griffin holds and services them.
Who services a Griffin private money loan?
Griffin does. Payments, statements, questions and payoff requests are handled by our own team.
How quickly can a private money church loan close?
Some Griffin private money loans have closed in as little as two weeks once due diligence was complete. That is not typical and it is not a guarantee. Timing depends on appraisal, title and how quickly your church can provide documents.
Is private money available in every state?
Private money is available in most parts of the United States, but not everywhere. Tell us where your church is located and we will confirm.
Does a private money church loan require a personal guarantee?
On a private money loan, this is decided case by case. Tell us about your church's situation and we will confirm.
Will a church in bankruptcy be considered?
Yes. Churches in or coming out of bankruptcy are among the most common situations we see on this program. Applying does not guarantee approval.
What does a church need to apply?
A one-page application, three years of financial statements, and current year-to-date statements. There is no cost to apply.
Can a church refinance out of private money into conventional financing?
That is the intent. Our private money loans run three to five years, and the goal is for your church to be in a position to qualify for conventional financing by the time the loan matures. Because Griffin holds and services your loan, that conversation starts with people who already know your file.
Next step
Find out where your church stands
There is no cost to apply and no obligation. We will tell you which program fits your church: private money, conventional, or neither.
Max LTVUp to 60% on private money
Phone(800) 710-6762
Emailinfo@churchloans.net
Office9951 Patriot Hwy,
Suite B,
Fredericksburg, VA 22407
Suite B,
Fredericksburg, VA 22407