AG Financial Solutions

AG Loan Solutions 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), capital commitment/bridge loans and new church plant loans.

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.

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.

When evaluating a loan application, AG Loan Solutions looks 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. 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.). 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.

Certainly, and we encourage churches to do so. There are no pre-payment penalties with AG Loan Solutions.

CAll churches are charged a non-refundable application fee of $300. A loan origination fee equal to 1.0% of the total loan amount is charged when the loan is closed. Finally, all loans are closed through an escrow company and will require title insurance, etc. You are responsible for the costs for these items as well as miscellaneous recording fees, etc.

Delinquent Loan Notices are mailed on any account delinquent 30 days or more, with copy to co-maker (if any). A delinquency letter is sent on any account over 90 days delinquent. A late charge equal to 5% of the monthly payment will be assessed for payments not received within 30 days of due date.

AG Loan Solutions policy requires a first mortgage on buildings. So, if there are no buildings, we generally cannot approve a loan. If, however, a church already owns a building and is purchasing land for future expansion, a loan for raw land may be approved, provided that financial ratios are acceptable.