Church Bonds

Church bonds are an alternative to traditional bank-issued mortgages. They offer substantial benefits to the church, its members and leadership team. Today's church bonds have changed since their introduction in to the Christian community. In the early days, these bonds were sold only to members of the church or Christian community. In 1913 the first church bond was sold to an outside investor. This has proven beneficial for churches as the availability of funds has increased.

Financing through Church Bonds

Church bonds can be compared to an “IOU,” where the borrower agrees to pay interest on the amount in addition to principal sum by a pre-determined date. Interest rates, agreement terms and the repayment schedule are set in a similar manner as traditional mortgages. These fixed payments help keep church leadership financially prepared throughout the life of the bond.

The loan amounts issued through church bonds have traditionally been less than $1,000,000. However, the trends today feature larger congregations serving thousands of people in multiple Sunday services. Accommodating for this increase in size has required larger loan amounts. Today it is common to see churches requesting millions of dollars to complete construction projects. In recent years, with innovative funding strategies, sizeable congregations are able to acquire the funds necessary for these large-scale plans.

Now is the ideal time to begin thinking about starting a reconstruction project. With today's affordable interest rates, the loan terms available through large networks of lenders are helping the growth of Christian communities. To begin the research process or to learn more about possible services, church administrators are advised to search the many resources available online.