What fees can we expect?

• There is a one-time service fee of 1.5% based on the loan amount. This fee is usually added into the loan.
• The buyer pays closing costs including the title insurance policy, recording fees, fire insurance policy, appraisal fees, legal fees, etc. These costs are paid directly to the agency or person providing the document or service.
• Monthly payments are due the 20th of each month, and a late charge is assessed if no payment is received within 10 additional days.
• If additional security is added to the loan, a new service fee of 1.5%, based on the additional funds, will be added. The buyer will also be responsible for additional title and closing costs.

Are there any balloon payments?

No.

What are the interest rates?

Several interest rate options are available based on the level of certificate participation. The higher the certificate base, the lower the interest rate. For an overview of our current rates, see our Rate Chart.

Is the loan interest rate fixed?

Church Extension Plan has two types of loans: Fixed and Adjustable Rate Mortgages.

If you choose a fixed 20-year loan, CEP will adjust and fix the rate according to our current rate chart and certificate base at the time of the commitment.

If you choose an ARM, CEP will review your loan rate every 3 or 5 years, depending on the term set at the time of commitment. Rate reviews will continue until the loan is paid-in-full. There is a 2% cap per review and a 4% lifetime ceiling.

Is there a prepayment penalty?

No.

Can the loan be funded in phases?

If your ministry is simply refinancing an existing loan, the loan will be funded in its entirety at closing. If your loan is for construction or a remodel, the loan is funded progressively. This is a great benefit to the church because monthly payments will only be charged on the amount borrowed at the time. Progressive funding also makes it easier to keep track of which projects have been completed and paid for and ensures the project will be completed within the loan amount.

Can we add on to our existing loan?

Yes. If you choose to increase your funding beyond your original project, you must submit a loan expansion request in writing. Our loan committee will then review your request. If all the pre-qualification criteria is met, funds will be added onto the original loan.

Do we need co-signers?

No. Church officers are required to sign all loan documents, but they are not required to sign as co-signers.

Is volunteer labor permitted?

Yes.