Determine the maximum loan amount your church can comfortably afford based on industry-standard financial ratios used by Church Extension Funds nationwide.
Annual income and operating costs
Total annual tithes, offerings, and other income
Salaries, utilities, programs, insurance, etc.
Existing obligations and collateral
Current loan payments (principal + interest per year)
Fair market value of property to be used as collateral
Desired repayment period and rate
Longer terms lower monthly payments but increase total interest
Typical CEF rates range from 4.5% to 8.5%
Based on 6.5% rate, 20-year term
Enter your church's financial details to see the maximum affordable loan amount.
Important Disclaimer
This calculator provides estimates for educational purposes only. Actual loan amounts, terms, and eligibility depend on the lending policies of individual Church Extension Funds, detailed underwriting review, and current market conditions. Consult directly with your CEF for a formal pre-qualification.
Church Extension Funds use three primary financial metrics to evaluate a congregation's borrowing capacity. Understanding these ratios is essential for any church leadership team preparing to finance a building project, expansion, or refinance.
The difference between a church's total annual revenue (tithes, offerings, donations, event income) and its annual operating expenses (staff compensation, utilities, programs, insurance, maintenance). NOI represents the funds available to service debt obligations.
The DSCR divides NOI by total annual debt payments. A ratio of 1.25x means the church generates $1.25 for every $1.00 in debt payments, providing a 25% safety margin. Most CEFs require a minimum DSCR of 1.25x, though some prefer 1.35x or higher for new congregations.
LTV compares the loan amount to the appraised property value. A 75% LTV maximum means a church can borrow up to three-quarters of the property's value. This protects both the lender and the church by ensuring adequate equity in the property.
This calculator applies all three constraints simultaneously and returns the lower of the DSCR-based and LTV-based maximum loan amounts. This conservative approach mirrors actual underwriting practices at most Church Extension Funds and provides a realistic estimate of borrowing capacity.
Lenders analyze 3 to 5 years of giving history. Consistent or growing revenue streams demonstrate congregational health and reduce perceived risk. Seasonal fluctuations are normal, but significant downward trends raise red flags.
A church with disciplined financial management and controlled expenses will show a stronger NOI. Operating expenses should ideally remain below 80% of total revenue, leaving at least 20% for debt service and reserves.
The appraised value of the collateral property directly impacts the LTV calculation. Well-maintained properties in favorable locations command higher appraisals and better loan terms.
Current loan payments reduce the funds available for new debt service. Churches with existing debt may need to demonstrate a clear plan for managing multiple obligations or consider refinancing.
A growing membership suggests increasing future revenue capacity. Lenders view positive attendance trends favorably, as they indicate sustainability of giving levels over the loan term.
Strong financial governance, including an active finance committee, regular audits, and transparent reporting, increases lender confidence in the church's ability to manage loan repayment responsibly.
The Debt Service Coverage Ratio measures a church's ability to repay its debts. It is calculated by dividing the Net Operating Income by the total annual debt service (loan payments). Most Church Extension Funds require a minimum DSCR of 1.25x, meaning the church generates $1.25 in income for every $1.00 of debt payments. A higher DSCR indicates a stronger ability to service debt and reduces lending risk.
Most Church Extension Funds cap loans at 75% of the appraised property value (0.75 LTV). This means if a church property is appraised at $1,000,000, the maximum loan amount would typically be $750,000 regardless of the church's income. Some CEFs may offer higher LTV ratios for well-established congregations with strong financials, while newer churches may face lower LTV limits.
Lenders look for stable or growing giving patterns over 3 to 5 years. Consistent or increasing annual revenue demonstrates a healthy, engaged congregation and reduces risk. Significant fluctuations or downward trends may raise concerns about the church's ability to sustain loan payments long-term. Churches should be prepared to provide detailed financial statements showing giving history.
Yes. Many churches refinance existing debt through Church Extension Funds to obtain more favorable terms, lower interest rates, or to consolidate multiple loans. When refinancing, the existing debt payments would shift from "Existing Annual Debt Payments" to the new loan calculation. CEFs often offer competitive rates because they operate as ministry-focused lenders rather than commercial banks.
While this calculator provides a strong estimate based on financial ratios, actual approval also depends on: the church's credit history and existing relationships, congregation size and membership trends, leadership stability and governance structure, geographic location and market conditions, environmental assessments for the property, denominational affiliation and standing, and the specific lending policies of the Church Extension Fund.
Connect with our team to discuss your church's building project, expansion plans, or refinancing needs. We specialize in serving Church Extension Funds and their borrowing congregations.