Loan Types

Great Nation specializes in:

• Short-term, variable-rate loans for land/building purchases;
• Construction loans convertible to permanent financing;
• Fixed-rate, short-term financing (3 to 5 years);
• Fixed-rate, intermediate-term bond financing (5 to 10 years);
• Fixed-rate, long-term bond financing (15 to 25 year);

Short Term Variable Rate Loans

Sometimes a church or faith-based organization only needs to borrow for a short period of time in order to take advantage of a special buying opportunity for land or a building.  We recommend short-term borrowing whenever a church has contracted to sell its current building, but has not yet closed and received cash.  We also recommend this form of borrowing whenever the property being purchased can be repaid within 2-3 years from a capital gifts program, pledges or some other reliable means.

Construction Loans Convertible to Permanent Financing

Great Nation pioneered this form of financing in 1989 which is now an industry mainstay!  Specifically, this form of financing combines the best of short-term and long-term financing whenever construction has already started or is about to start, but a church’s anticipated financing fails to materialize.

Great Nation is able to arrange interim funds to pay construction costs on a “co-first” mortgage basis.  While interim loan proceeds are being used to pay construction costs, Great Nation initiates the church’s bond program also on a “co-first” mortgage basis.  The “co-first” mortgage allows the interim loan and the bond program to share equally in the mortgaged property given as collateral.  Once the bond program begins, funds received from the sale of bonds are used to repay the interim construction loan until the bond program is completed.  The church’s primary advantage in this form of financing is the fact that the church is only required to make payments on either the interim construction loan OR the bond program, but not both!  Another advantage is the fact only one title policy fee is paid to cover the interim loan and the permanent financing.

Fixed Rate, Short-term Financing (3-5 years)

Most churches and faith-based organizations do not realize they can take advantage of lower, short-term interest rates by issuing bonds for 3 to 5 years.  The interest rate available to them usually is the current prime banking rate!  Great Nation also specializes in short-term conventional loans:  However, the interest rate is usually higher for a conventional loan.

Fixed Rate, Intermediate-term Bond Financing (5-10 years)

For select churches that have the ability to retire debt sooner rather than later, Great Nation is able to design a bond offering to fit each need.

Fixed Rate, Long-term Bond Financing (15-25 years)

Although you may be quoted repayment terms based upon 20 or 25 years, the simple fact is conventional loans are typically locked-in for only five (5) years with no commitment by the lender to extend your loan for a longer period of time!  Bond financing is fixed for the life of the loan and offers churches the ability to repay all or a portion of their debt ahead of schedule without penalty.