Loan types
Term Loans
For capital projects such as improvements, remodels, or construction of facilities. After the project is finished, the loan is amortized over 10–15 years with regular payments of principal and interest.
Bridge Loans
For affordable housing pre-development on faith land. Covers permitting, project management, legal documents, and other pre-development costs. Interest-only payments during the project; principal due after a trigger event like the sale of property or receipt of a grant.
Term vs. bridge loan comparison
| Criteria | Term Loan | Bridge Loan |
|---|---|---|
| Security | First mortgage position, title insurance at borrower’s expense | First mortgage position, title insurance at borrower’s expense |
| Max Term | 15 years | 5 years |
| Interest Rate | Prime minus 0.5% | Prime plus 1.5% |
| Relationship Discount | 0.5% for accounts held 1+ year | 0.5% for accounts held 1+ year |
| Debt : Income | 30% or less | N/A |
| Loan : Value | N/A | 10% or less |
| Loan : Project | 70% or less (require 30% cash on hand) | 80% or less |
| Contingency | 15% new construction, 20% remodeling | 15% new construction, 20% remodeling |
| Repayment Ability | 3+ years of financials; evidence of sufficient cash flow for payments and all expenses | 3+ years of financials; detailed exit plan and contingency plan for repayment |
Rates, terms & fees
Interest rates
Term loans: WSJ Prime − 0.5%. Bridge loans: WSJ Prime + 1.5%. Fixed for four years, then reviewed each fourth year. Organizations with Faith Foundation investment accounts (1+ year) receive an additional 0.5% discount.
Loan term
Currently the longest term available is 15 years. Amortization depends on loan size and the organization's ability to service the debt.
Fees
No application fees. Title insurance and (for large/complex loans) legal counsel costs are added to the principal. For bridge loans, these usually total less than $1,000. No prepayment penalties — ever.
How your loan helps others
The money we loan to organizations comes from investments in our Stable Value Portfolio. Unlike a bank loan where interest lines the pockets of executives and shareholders, every penny our borrowers pay in interest directly benefits other organizations who have invested their reserves with us. It's a cycle of giving and receiving that supports mission-driven work here in the Northwest.
Funds become loans →
Interest benefits investors →
Repeat
Eligibility
How to apply
Start inquiry
Tell us about your project and select your loan type. Our team will review your inquiry and send you the right application form.
Submit application
Complete the online application with your organization details, financials, project costs, and repayment plan.
Committee review
Our loan committee reviews your application, usually within several weeks.
Title & documents
We order a title report and prepare loan documents for trustee signatures.
Closing & first draw
Once documents are recorded, request your first draw. Funds arrive via direct deposit.
Lending FAQs
Common questions from organizations exploring their borrowing options.
Do we have to be United Methodist to qualify?
No. Although Faith Foundation Northwest has deep roots in the United Methodist tradition, congregations do not have to be United Methodist to qualify for a loan. We serve churches and faith-based organizations across Alaska, Idaho, Oregon, and Washington.
How are payments made?
We disburse funds by direct deposit. Payments begin the first day of the second month following distribution of funds, and are made via ACH through our secure portal.
How long does the loan process take?
After we receive a complete application, our loan committee is usually able to make a decision within several weeks. After that, we order a title report and originate the legal documents. If the loan is small and the title report is clear, things progress quickly. Once all parties are comfortable with the documents, the church trustees work with the title company to sign, notarize, and record them. As soon as they're recorded, you can request your first draw.
How much can we borrow?
As of late 2023, the Foundation is able to independently make loans up to $800,000. If you need a bigger loan, we have several other lenders ready to participate and help us make your loan happen — so don't be shy about asking! The actual amount depends on your project and your church's repayment ability.
What are your interest rates?
Term loan rates are set below the Wall Street Journal Prime Rate. Bridge loan rates are set a little above WSJ Prime. Rates are fixed for four years and then reviewed each following fourth year. Adjustments, both up and down, can be made upon each four-year anniversary.
What fees do you charge?
We don't charge any fees unless our underwriting requires site visits. The cost of title insurance is added to the loan principal. In the case of a large and/or complex loan, the cost of legal counsel is also added to the loan principal. There are never penalties for early repayment.
What is the 30/30 rule?
For term loans, we use the 30/30 rule to determine eligibility and loan amount. This is a guideline our loan committee uses to assess your church's ability to service the debt. For bridge loans, we focus more on the loan-to-value ratio rather than the 30/30 rule.
What security is required?
A Deed of Trust recorded in first position is required for all loans.
What types of projects do you finance?
We offer two loan types. Term loans (available since 1992) finance new construction, retrofitting worship space for outreach, and capital improvements like paving parking lots, repairing roofs, and replacing HVAC systems. Bridge loans (available since 2019) support special projects like solar panels and pre-development for affordable housing.
Ready to explore your options?
Our team works exclusively with faith-based nonprofit organizations. Reach out to discuss your project and financing needs.