Thursday, March 19, 2015

How To Acquire Church Mortgages

By Lelia Hall

When a church feels that there is a need to construct a new church this is usually a sign that they have gained more followers hence it is a happy thing. However, getting the money to finance the building of the ministry is not as easy as it seems. Many churches find it very difficult to acquire church mortgages therefore they end up using their old buildings even when they desperately need another. The following is some important information that can be used by congregations.

Church finances might be a source of misapprehension among the followers of a certain congregation since they do not understand the right techniques of getting the cash they require. People should be very prepared to look at the available choices so that they can define where they will acquire the money from. There are various mortgage loans obtainable in financial banks and also church pledges.

Churches can also acquire the money they need for construction through funding campaigns where the members of the congregation and other concerned parties will all contribute what they have and the money will be brought together to meet the construction requirements. There are also some grants that can be given to them for these purposes.

Every church accumulates large amounts of funds during every mass. For some churches, this money may even total to one million dollars annually. For this reason, banking institutions are not too hesitant to offer them funds. Banks can give mortgages that total to even 5 times the finances that are usually collected in one year and they give it with an interest.

Churches can also be given an opportunity to purchase a bond and later invest it to raise the total amount of money they will need. These are not necessarily the same as the traditional bonds as they have some difference. For these types, there are many lenders involved as opposed to the one lender involved in the traditional bonds. They are also relatively expensive compared to the other ones.

Instead of burdening themselves with the bank mortgage loans, the management can also be involved in some kind of a business so that the profits can be used for the construction of the proposed church. They can choose a certain product and sell it as this will help them to raise money without burdening themselves with future payment obligations.

There are various other non-traditional financing options that the congregation can choose. One of them is the lease-purchase kind of financing where the ministry will be constructed but they will pay later. The managing committee can also choose to purchase a property that has already been built by another person and just pay the loan with time. This will save them from all the stress of construction when they do not even have enough finances.

Capital stewardship companies are always ready to help people get the finances they need hence the churches must always be ready to consult them when they are not sure what they want. Here they will get all the best recommendations so that they can achieve all their objectives without being at risk. They will be presented with the above and many other options.

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