Most churches are well-supported financially by their religious order or through donations from their attendees and have no difficulty qualifying for loans, often with attractive terms and low interest rates. Sometimes, however, a church can fall into financial difficulty and have trouble getting financing. In these situations hard money church loans providers can offer a solution.
A hard money loan must be backed by collateral (typically land or real estate) so that the lenders risk is minimized and these types of loans often charge a higher interest rate and can sometimes be offered for shorter periods than traditional loans (although this will depend on the lender). They are attractive because there is no minimum credit score required to qualify, no application fees or other upfront fees, they can be established quickly and do not charge a penalty for early repayment.
