FAQs

Church & Institution Financing

Q: How do I calculate how much we can borrow?

A: Thrivent Financial for Lutherans does not have a specific formula to calculate how much a congregation can borrow. It is most important for you to plan your project around the ministry needs of the church. Professional stewardship or fundraising experts can assist you in the planning. Thrivent Financial for Lutherans does have some guidelines to consider:

• A loan should not exceed 75% of the collateral available.
• Based on our experience, a manageable level of debt is up to $3,500 per communicant member and about 33% of the congregation's operating budget. However, there are many congregations that can handle significantly more debt.

Please contact us directly to discuss your specific project and financing needs. We may be able to suggest additional creative solutions.

Q: How do we start the loan process?

A: You can begin the process by completing the loan application and submitting it to us as directed on the loan application form.

The actual loan process begins with our receipt of your application. The application provides us with the details of your congregation and the nature of the financing you are requesting.

Once we receive your application, we will underwrite the loan and, upon approval, will send the congregation a formal letter of our commitment to provide the loan.

Q: How long will the loan process take?

A: Typically we need about two weeks to complete the underwriting process and to issue the formal commitment. After that, the timeline depends on the specific requirements needed to close the loan. For example, all loans require a borrowing resolution to be approved by the congregation, so you will need to do that in accordance with your constitution and by-laws.

Once we receive all the specific requirements, it takes about two weeks to review the items submitted, prepare the loan documents and schedule the closing. These timeframes are estimates and may vary based on the nature of the project.

Q: How do I compare our Thrivent Financial for Lutherans loan offer with other lenders?

A: It can be difficult to get an "apples to apples" comparison since lenders' terms and conditions vary widely. However, Thrivent Financial for Lutherans will gladly work with you to help evaluate your choices. Our goal is to help you and your congregation find the product that best suits your needs. Ask the following:

• What is the term of the loan (the date the loan matures, not the length of the amortization)? Few lenders offer a term longer than three to five years and may charge additional fees to renew the loan.
• How long is the initial interest rate fixed? If the rate is variable, what are the terms of the reset?
• What are the initial fees? Are there additional fees during the life of the loan if changes are made?
• Are there prepayment penalties?
• Are there late payment charges?

Q: Who can borrow from Thrivent Financial for Lutherans?

A: Thrivent Financial for Lutherans provides financing to Lutheran congregations and other Lutheran institutions that are self-supporting and meet our lending criteria. Thrivent Financial for Lutherans does not provide financing for operating expenses.

Q: How are Thrivent Financial for Lutherans' rates determined?

A: We base our rates on a number of factors, including relevant Treasury securities; Commercial Mortgage Backed Securities markets; overall market volatility; and various risk parameters. The rates are not tied to one specific metric and typically do not fluctuate daily or with every change in the market; however, they are reviewed on a periodic basis and adjusted as necessary.

Our goal is to offer favorable rates while delivering on our commitment of investment return for members/product owners. As a non-profit entity that gives back to the Lutheran community through fraternal operations, Thrivent Financial for Lutherans does not have the added margin of profit or overhead built into pricing that other financial institutions typically do.

Q: When should we complete and send in the loan application?

A: Once you begin to firm up your project plans, you should submit your loan application. For large construction projects, developers will typically want to ensure you have a firm commitment for financing before entering into a contract.

Q: How is the interest paid on our church loan used by Thrivent Financial for Lutherans?

A: Thrivent Financial for Lutherans' Church and Institution Financing Program is one investment portfolio within the larger corporate general account. The interest that is repaid by your congregation over the life of the loan is used to support commitments on products offered by Thrivent Financial (e.g., life insurance payouts).

Also, the church loan portfolio, along with other investment assets, helps support Thrivent Financial programs to help those in need, strengthen not-for-profit organizations and provide community assistance.

Q: Where can I find information about Thrivent Financial for Lutherans' church loans for my presentation to the church council or the congregation?

A: Download a general overview (PPT, 145K) of Thrivent Financial for Lutherans' Church Loan Program. For more specific information relevant to your project, our staff will be happy to provide assistance. Contact us.

Q: Can we pay off or pay down the loan early without a penalty if the church receives a large sum of money from an estate or a fundraiser?

A: The congregation may make payments, in addition to the required monthly payments without penalty, provided the funds did not originate from another lender. A prepayment penalty will apply when funds originated from other lenders and/or any other external sources are used. Prepayments will be applied immediately to the balance of the loan and they shorten the term of the loan. Monthly mortgage payments are not reduced, unless specifically requested by the congregation.

Q: Where do I send an additional payment?

A: If at any time you wish to send additional funds toward your loan principal, please print out a principal only coupon (Word, 75K) and indicate the church name, address, loan number and dollar amount on the coupon in the spaces provided. Please be sure to add your loan number and instructions in the memo field on the check as well (Example: 200011111 Principal Only) and mail to:

Thrivent Financial for Lutherans
4321 N. Ballard Road
Appleton, WI 54919-5002

Q: Who do I contact about a late payment issue (past due issue, etc.)?

A: Our church loan servicing area can help with any type of payment issue. Please contact us.

Q: Why didn't I receive my bill this month?

A: There are a number of reasons why a billing statement may not have been mailed, but the most common reason is a payment was made ahead of the payment date and nothing was due when the billing statements were printed. If a payment has been fulfilled more than 15 days before the due date, a billing statement will not be mailed. Please contact us if you are in need of payment information.

Q: How do I make a payment? What is the easiest way?

A: Payments can be made one of two ways:

1. Payments can be made by mail to:
   
   Thrivent Financial for Lutherans
   4321 N. Ballard Road
   Appleton, WI  54919-5002
   *Please be sure to include your loan number on the memo line of the check.
   
   

2. We can simplify your payment process by automatically drawing funds from your specified church account (set up instructions [Word, 87K]).

Q: How do I change the address of our billing statements?

A: Complete an online form to update your church loan billing statement mailing address. Your address change will be updated in our system in approximately two business days. Your next church loan statement will be sent to this updated address. This mailing address change will NOT change the address on any other Thrivent Financial for Lutherans' products the congregation may have.

Q: How do I change our account information for automatic payments?

A: Thrivent Financial for Lutherans will need updated bank account information to make changes to our billing system. Please contact us to make changes.

Q: What do we do if our church runs into financial problems?

A: We understand that things don't always go as planned. Please call us at 800-984-9425 to discuss.

Q: How do we pay off our loan?

A: Please call our servicing area at 800-984-9425 for a quote to pay off your loan ahead of your scheduled maturity or submit a request. The current principal balance on your monthly statement does not reflect any accrued interest due on the loan.

Q: Can we obtain additional funds from our existing loan?

A: Thrivent Financial for Lutherans does not provide financing for opertaing expenses. Financing for capital improvements may be available. Please complete an application (PDF, 45K) or contact us for more information.

While Thrivent Financial is proud to support Lutheranism through its members and benevolent efforts, it and its affiliates are not a church or part of the Lutheran church.

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