| Bonds are probably the most flexible source of long-term capital available to churches. The greatest advantage of bond financing is that bonds provide a fixed interest rate, long-term solution for your financial needs. Thus with bonds, there are no balloon payments, rate changes, or future re-qualification risks normally associated with bank loans. Bond financing allows a church borrower to tailor its borrowing needs and repayment schedules. Because bonds provide the mechanism to provide fixed, long-term financing rates for up to 25 years, the borrowing church will know at the onset each payment it will make for the next 25 years. Since churches are budget-based institutions and chrch leaders are stewards of their congregations’ financial resources, knowing theses future payments is critical for responsible financial management. Bonds typically have significantly less onerous terms and conditions associated with them as compared to borrowing from a bank and other conventional lenders. Our organization does not require members of the issuing church to purchase any bonds. Our investors regularly invest in bonds issued by churches throughout the country. Bond financing can be very flexible and provide a low- cost method for churches to borrow funds.
American Investors Group, Inc. specializes in the underwriting and distribution of mortgage-secured church bonds. The bonds are sold through its established, nationwide broker network with an extensive client base. Loans funded through bonds range in size from $1 million to $15 million. |
