Churches are encouraged to seek funding from their local lending institution to provide the primary financing. First and second mortgage loans are often available to qualifying churches.
For consideration of financing, churches must be a Participating Church contributing financially ot the Virginia portion of the Cooperative Missions budget as defined in the BGAV Constituion Article III, Section C: “A church shall be deemed to have contributed financially when it has given either (a) at least $500, or (b) at least two percent (2%) of its total annual receipts, during the previous fiscal year to the Virginia portion of the Cooperative Missions Budget.”
- Contact the Baptist Extension Board to request a Loan Application and copy of the Guidelines for Extension Board Loans.
- Complete all portions of the written application and return to the Baptist Extension Board at the Virginia Baptist Resource Center for consideration at the next Board meeting.
- The church should already have at least three trustees who hold legal title to property for the congregation and who sign related property and loan documents. The elected trustees must have been appointed by a circuit court judge. If this has not been done, your congregation must elect the trustees and your attorney then will petition the court to have them appointed. You may want to do this at the same time as the petition mentioned in paragraph 5.
- Church leaders are expected to appear in person to present their loan request to the Baptist Extension Board at the Virginia Baptist Resource Center. The Board meets during the first and second quarters each year and may also convene under special circumstances at other times during the year. Church leaders can contact the office for results of the meeting the following business day.
- Upon loan approval, the church must submit a petition to the circuit court to request approval to encumber the property with a deed of trust.
- Written notification of loan approval and the terms of the approval will be sent to the church pastor. Acceptance of the loan offer must be made in writing to the Baptist Extension Board within 30 days.
- Upon receipt of written acceptance of the loan offer, the Baptist Extension Board will send appropriate loan documents to the church pastor. These documents should be forwarded to an attorney of the church’s choosing to be executed by the trustees and recorded in the local circuit court.
- Before closing, appropriate Title Insurance or an attorney’s opinion of title must be submitted to the Baptist Extension Board.
- The original recorded Deed of Trust and signed Deed of Trust Note should then be returned to the Baptist Extension Board along with written instructions for disbursement of loan funds.
- The Baptist Extension Board must be listed as an Additional Insured or the Mortgagee on the church’s hazard insurance policy as of the time of recording the Deed of Trust. The certificate of insurance showing that information must be forwarded to the Baptist Extension Board.
- Loan funds will then be disbursed based on written instructions from the church or the church’s attorney.
- Monthly loan payments will be remitted by the due date to the Baptist Extension Board in the amount designated in the terms of the loan.