Guidelines & Fees
Loan Guidelines
A number of guidelines are used in the underwriting of a new loan. In the event that a congregation does not meet all of the guidelines, a congregation may still qualify for a loan with an adjusted rate of interest. We consider the following in our underwriting process:
- An institution's total debt and revenue.
- Fundraising or capital campaign plans.
- Property owned by the congregation. All property and collateral owned by the congregation is included in a mortgage loan.
- Appraised value of the congregation's real estate.
- Other indebtedness (we generally expect that the congregation has no other indebtedness).
- Annual income/expenses and cash flow.
- Length of time as a self-supporting congregation.
Loan Fees
- Loan Commitment Fee – A commitment fee of 0.125% (one eighth of a point) or a minimum of $500 will be charged. For example, a $625 commitment fee will be charged on a $500,000 loan. Thrivent Financial for Lutherans will issue a letter to the congregation, committing to the loan amount. Upon receipt, an official of the congregation will sign the commitment letter and return it to Thrivent Financial for Lutherans along with the required commitment fee.
- Refinance Fee – For refinance of an existing Thrivent Financial for Lutherans loan, a refinance fee of 1% of the existing loan balance will be required to restructure the terms of the current loan. This fee applies if the loan is changed in any of the following ways: the rate is decreased, the maturity date is extended or the loan type is changed (i.e., fixed vs. adjustable).
- Prepayments – 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 may shorten the term of the loan. Monthly mortgage payments are not reduced, unless specifically requested by the congregation.
- Other Fees and Expenses – All fees and expenses connected with the preparation, execution, recording and funding of the loan, including title insurance fees and attorney fees, are paid directly by the congregation.
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