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Foundation Loan Services

Foundation Loan Services. Jerry Vaughan Senior Vice President. Types of Funding Options. Traditional Loans Church Bond Programs Upfront Cash, Pay As You Go. Traditional Loans. Sources: The Baptist Foundation of Oklahoma Local Banks Other Nationwide Lenders. Traditional Loans.

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Foundation Loan Services

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  1. Foundation Loan Services Jerry Vaughan Senior Vice President

  2. Types of Funding Options • Traditional Loans • Church Bond Programs • Upfront Cash, Pay As You Go

  3. Traditional Loans • Sources: • The Baptist Foundation of Oklahoma • Local Banks • Other Nationwide Lenders

  4. Traditional Loans • Characteristics: • Credit Qualification • Mortgage Requirement • Title Work (Title Insurance, Title Reports) • Appraisal of Property, Surveys, EPA Reports • Closing Costs

  5. Church Bonds • Characteristics: • Two Types of Bonds • Faith Bonds (unsecured, not very common) • Mortgage Bonds (secured by mortgage) • Loan funds generated by sale of bonds • Bondholders repaid, with interest, by church

  6. Church Bonds • In most cases church assumes responsibility for selling the bonds, which can be laborious and involves legal issues • Church settles for whatever amount of bonds are sold • Bond repayment arrangements may be more restrictive than other forms of financing • The actual cost of financing is generally greater than the stated rate

  7. Upfront Cash, Pay As You Go • Good concept for small projects • For larger projects requires a significant amount of funding prior to beginning construction • Can lengthen building process and risk rising construction costs as cash flow varies from month to month • Church may not have use of facilities as quickly (scheduling of contractors, purchase of materials, etc.)

  8. Capital Fund Raising • Can be used whether a church decides to borrow, issue bonds or build debt-free • Great source of upfront cash and cash flow during project construction and repayment • Teaches the congregation about planned giving above the tithe • Significantly reduces debt over a short period of time

  9. The Baptist Foundation of Oklahoma A Ministry and Business Partnership Between The Baptist Foundation of Oklahoma and Oklahoma Baptist Churches

  10. The Baptist Foundation of Oklahoma • Fast and easy loan process • Competitive interest rates and terms • We know Southern Baptist Churches…our only customer • No appraisal requirement and No prepayment penalties • All interest paid is distributed to Kingdom causes

  11. ALL INTEREST PAID ON LOANS BENEFITS KINGDOM CAUSES!! OBHC OBU BGCO CHURCHES OTHERS BFO SBC

  12. The Foundation is committed to: • Providing a fast, easy and convenient loan process • Competitive interest rates and terms • Low closing costs • Our goal is to help churches borrow wisely and service debt efficiently.

  13. “…through us your generosity will result in thanksgiving to God.” II Corinthians 9:11b

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