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Loan Eligibility
Rates
Fees
Approval Process
Loan Service
Loan Prepayments
Individuals
Construction Financing
Loan-to-Value Ratio
Negative Pledge Agreement
Commercial Transaction
Loan Eligibility
Who qualifies for a ChurchLoan?
Any institution affiliated with the greater Catholic community in the United States, United States Territories and Canada is eligible for consideration under ChurchLoan. Knights of Columbus state, provincial and local councils are not eligible for ChurchLoan.
Rates
When does my rate lock in?
The rate is locked as of the close of the last business day of the week prior to funding. Rates cannot be locked prior to the close of the loan.
How is my rate calculated?
The interest rate applicable to the loan will be determined by comparable maturity Constant Maturity Treasury notes plus a spread.
Fees
Are there any fees associated with the application?
A nominal fee is included with your loan application. However, if the loan is closed or if the application is not approved this fee is refunded.
Are there any points?
No.
Are there any hidden charges?
Other than the application fee, there are no hidden document processing fees or handling fees. However, all typical costs required for the close of the loan will be covered by the borrower. (i.e. title insurance, survey, appraisal, legal counsel etc.)
Approval Process
How long does it take to receive approval for a loan request?
The length of the underwriting process varies from application to application. Cooperation from the applicant, and completing and providing all the required application materials will speed up the approcal process.
Loan Service
Could my loan be sold to another institution?
These loans are not sold and will remain with Knights of Columbus for the life of the loan.
Will my institution’s information be sold to other institutions?
No, Knights of Columbus respects the privacy of Catholic institutions. We will treat all non-public information provided to us as confidential and with the same care as our own non-public information.
Loan Prepayments
Are there prepayment penalties?
No, prepayments can be made without penalty as long as the payment comes from internally generated funds (i.e. capital campaign, bequests, fund-raisers etc.)
Individuals
Do individuals qualify under ChurchLoan?
No, individuals are not eligible for ChurchLoans.
Construction Financing
Does ChurchLoan provide construction loans?
No, ChurchLoan is not available for construction financing. Typically, a borrower will go to a local bank for financing construction. A ChurchLoan would take-out the construction loan at the completion of the project.
Loan-to-Value Ratio
What is a Loan-to-Value Ratio?
Secured ChurchLoans must meet a 75 percent loan-to-value ratio. For example: If XYZ parish’s property is worth $1 million, XYZ parish’s borrowing limit is 75 percent of that value, or $750,000.
Negative Pledge Agreement
What is a negative pledge agreement?
A negative pledge agreement states that the borrower will not place liens on any of its property for the life of the loan.
Commercial Transaction
Is a ChurchLoan a commercial transaction?
Yes, a ChurchLoan is considered a commercial transaction. Every ChurchLoan must meet all the typical standards required for any commercial transaction.
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