Church Acquisition Checklist

Requirements to underwrite a church purchase:

  • Resume on the pastor (Pastor needs to have a 5 year track record at current location)
  • Any other ancillary income (Day Care, Preschool, or Etc.)
  • Church's YTD Profit and Loss and Balance Sheets
  • Church's 3 Years Profit and Loss and Balance Sheets
  • Church Bylaws
  • Evidence of tax exempt status
  • Membership requirement (If applicable)
  • Breakdown on the donations. Are the majority of the funds coming from a special group or individual(s)?
  • Is there any specific member who is supporting the congregation?
  • Personal Financial Statement for the pastor and any other person providing a guaranty of repayment for the loan.
  • Purchase and Sales Agreement
  • Will this new building be used to replace an existing building? If yes, please explain what will be done with the building that is being replaced.
  • Do you currently own your property or lease? If leased, how much is the monthly lease payments? If owned, how much is the monthly mortgage payments?
  • How will this new property improve the organization?
  • What is the seating capacity of your current sanctuary?
  • What is the seating capacity of the new sanctuary?

What the lender will require:

  • Banking relationship is required with the lender who is extending the new loan
  • Identify the ownership entity that will take title (Non-Profit or Profit)

Information above is required to better understand, underwrite, and package the deal. Each deal is unique and additional information may be required. Some of the requirements may not apply to every single case. We recommend that all applicable items on the above check list be provided in a timely manner.

Above information provided by: