The primary purpose of LACE is to provide congregations with low-cost loans.
These loans can be used to refinance current mortgages; construct, expand or renovate church/school facilities; parsonage or teacherage construction; or to complete miscellaneous projects such as purchasing an organ or fixing a roof.
LACE does not charge any direct fees for our service!
The only fees incurred are from third party companies – typically related to the title process and state/local filings.
YOUR investments make current and potential opportunities to support schools & congregations possible!
Loan Rates: 7.50%
We offer 5 Year Balloon Terms: 20, 25 or 30 Years (Rates reviewed every 5 years). LACE loans are secured by a mortgage where we must be in first position. This would require any existing mortgages to be paid off prior to a LACE loan or to be included into the total requested loan amount on the application.
Types of Loans
Construction Loans
LACE provides a loan commitment letter for the full amount while you only pay interest on the amounts disbursed. Compared to most traditional lenders, this saves your congregation/ organization money on interest and does not require a separate closing process and fees.
Classic Loans
LACE provides a loan commitment letter for the full amount and generally disburses that amount days after the loan closing process is completed.
Refinancing Loans
LACE, based on various factors, can refinance existing LACE loans as well as loans from other financial institutions. The same application process is generally followed and may be limited to available liquidity. Having your congregation and/or members invest in LACE Certificates may increase our liquidity to assist with the loan review.
Small Loans
LACE may make small loans for up to $165,000. The interest rate for these loans is typcially the same as all other loan options.
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The loan may be for the purchase of equipment or capital improvements, but cannot be used for operating expenses, and
Borrowers must make a minimum monthly repayment of $100.
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For loans of $25,000 or less: the loan must be fully amortized over a period equal to or less than sixty (60) months.
For loans between $25,001 and $165,000: The loan must be fully amortized over a period not greater than one hundred eighty (180) months.
The maximum loan amount generally permitted for a single borrower is 10% of the total amount of LACE’s loan portfolio at any given time, including approved but undisbursed loans.
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LACE loans funds to Borrowers for (1) financing capital expansion projects (particularly for the construction, renovation, repair or purchase of facilities and real property for worship, education and ministry); (2) refinancing existing capital indebtedness; (3) making major purchases of equipment; and (4) for other projects that serve to extend the Lutheran church and its mission. If funds are available, LACE provides loans for the above purposes when LACE is satisfied from its review of the application form and related documents that the potential Borrower (“Loan Applicant”) will be able to meet LACE’s repayment requirements. LACE does not loan funds for general operating expenses.
Except for construction loans or special situations, LACE generally requires that Borrowers make minimum monthly payments that will amortize the loan in 30 years or less. In the case of construction loans, LACE typically requires interest only payments for up to the first six months of the construction period. Thereafter, the loan payment will typically be a fixed amount of principal and interest on the entire loan. Prepayments on loans may be made on any type of loan at any time without penalty. LACE requires Borrowers to retain their own legal counsel and to pay miscellaneous charges for recording fees and any special state, county or other governmentally imposed fees.
Questions?
FAQs
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7.50%
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Please fill out an application and a borrowing resolution, which you can find under the resources tab, mail these forms in with 2 years of financials. Our office will contact you with questions and/or the status of the loan in a timely manner.
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The title work that we order takes the longest, once we receive the title work (typically less than 3 weeks) we can schedule the closing. Note- If you send in a borrowing resolution when you send in your application- this helps speed up the process so that the documents are ready as soon as title work comes in so that we can see who the authorized signers are.
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Yes!
USPS delivery has been inconsistent at best. We’ve had things post marked a week or more before we see it. ACH ensures the payment arrives in time and keeps the Principal & Interest amount the same. The more days between payments means the more interest paid - 30 days between payments is best. If your payment arrives late, accounting for USPS, holidays or weekends, 40-45 days between some loan payments can easily occur. When payments are applied - past due interest is paid first.
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An ACH transfer goes through an interbank system for verification before it's completed. A wire transfer goes directly and electronically from one bank account to another without an intermediary system. ACH transfers typically have lower fees than wire transfers have.
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$600,000
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For WELS / ELS organizations:
Land, building purchase, remodeling & expansions
New construction
Not for:
Personal loans of any kind.
Operating costs
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APPLICATION
TWO YEARS OF FINANCIAL STATEMENTS
BORROWING RESOLUTION
ARTICLES OF INCORPORATION
CONSTITUTION & BYLAWS
PROPERTY APPRAISAL