Loan application guide for ELCA Congregations

Loans over $100,000 fall under the "Long-Term" product category, with terms up to 25 years, depending on underwriting and loan purpose. 

Example: A $110,000 loan for maintenance may not justify a 25-year term. MIF may recommend a shorter term. 

Loans are secured with a first-position lien on ministry property. 

MIF does not charge an application or origination fee. The only associated costs are third-party expenses such as title and document preparation. Construction loans may allow interest-only payments during the building period, with funds disbursed as needed. 

Loans under $100,000 are typically referred to the ELCA Federal Credit Union and are usually unsecured. On occasion, the MIF will issue a small project loan.  

Small project loans utilize a promissory note rather than a mortgage. 
There are no closing or title costs. Funds are typically disbursed in a lump sum. 

Include a copy of the purchase contract. Ministries may also submit a preliminary application prior to signing a contract to verify borrowing capacity. 

Purchase loans typically require a survey, appraisal, and other due diligence depending on the property type. If you are purchasing vacant land an environmental study and soil study may be required. 

List only the remaining costs to complete the project. Fill out applicable sections and feel free to: 

• Contact MIF for assistance. 

• Match your budget categories to those in our form. 

• Combine or rename categories if necessary. 

Even for preliminary applications, provide as much detail as possible. Don’t forget to consider costs like: 

• Builder’s risk insurance 

• Performance bonds 

• Furnishings and equipment 

• Contingency budget 

We use this information to ensure all project-related expenses are included. 

If your ministry already has a loan with MIF and is seeking additional funding, list your current loan balance. In most cases, we’ll combine the existing and new loans into one. 

If you prefer to keep them separate, explain this in your cover letter. 

If refinancing a loan from another lender, check if a prepayment penalty applies. 

Include a contingency line item in your project budget for unexpected costs. Any unused portion may reduce your total loan amount and your payments will be adjusted accordingly. 

Estimate interest costs based on loan size and construction timeline. No exact calculation is required, but budgeting for this is important. 

A legal document preparation fee, starting at $1,200, will apply (charged by MIF’s attorney). 

Varies by state. MIF will provide an estimate. Typical items include: 

• Title insurance (based on loan amount) 

• Title search fees 

• Recording fees 

• State-specific taxes and filing costs 

• You should estimate the title costs to be around 1% of the total loan amount. If you are in a state with a mortgage tax, you should expect the title costs to be higher 

If payments come from capital campaign donations (not general giving): 

• Annual principal and interest payments should not exceed 75% of your pledged income. 

• Example: $100,000 in pledges = max $75,000 in payments 

• Total debt should not exceed 4x your regular member giving. 

• Example: $100,000 in giving = max $400,000 in total debt 

If loan payments will come from your operating budget: 

• Annual principal and interest payments should not exceed 15% of regular giving. 

• Example: $100,000 in giving = max $15,000 in payments 

• Total debt should not exceed 2x your regular giving. 

• Example: $100,000 in giving = max $200,000 in total debt 

Explain your repayment plan in your cover letter.