Q: How do I calculate how much we can borrow?
A: Thrivent Financial for Lutherans does not have a specific formula to calculate how much a congregation can borrow. It is most important for you to plan your project around the ministry needs of the church. Professional stewardship or fundraising experts can assist you in the planning. Thrivent Financial for Lutherans does have some guidelines to consider:

• A loan may not exceed 75% of the collateral available.
• Based on our experience, a manageable level of debt is up to $3500 per communicant member and about 33% of the congregation’s operating budget. There are many congregations that can handle significantly more debt.

Q: How do we start the loan process?
A: The loan process begins with receipt of the application. While we enjoy consulting with you at any time during the planning of your project as you contemplate your financing needs, the application provides us with the details of your congregation and the nature of the financing you are requesting. Once we receive your application we will underwrite the loan and upon approval will send the congregation a formal commitment letter to provide the loan.

Q: How long will the loan process take?
A: Typically we need about two weeks to complete the underwriting process and to issue the formal commitment. After that, the timeline depends on the specific requirements needed to close the loan. For example, all loans require a borrowing resolution to be approved by the congregation so you will need to do that in accordance with your constitution and by-laws. Once we receive all the specific requirements, it takes about two weeks to review the items submitted, prepare the loan documents and schedule the closing. These timeframes are estimates and may vary based on the nature of the project. Please contact us directly to discuss further.

Q: How do I compare our Thrivent Financial for Lutherans' loan offer with other lenders?
A: It can be difficult to get an “apples to apples” comparison since lender’s terms and conditions vary widely. However, Thrivent Financial for Lutherans will gladly work with you to help evaluate your choices. Our goal is to help the congregation find the product that best suits your needs. Here are some key considerations:

• What is the term of the loan (the date the loan matures, not the length of the amortization)? Few lenders offer a term longer than 3-5 years and may charge additional fees to renew the loan.
• How long is the initial interest rate fixed? If the rate is variable, what are the terms of the reset?
• What are the initial fees? Are there additional fees during the life of the loan if changes are made?
• Are there prepayment penalties?
• Are there late payment charges?

Q: Who can borrow from Thrivent Financial for Lutherans?
A: Thrivent Financial for Lutherans provides financing to Lutheran congregations and other Lutheran institutions that are self-supporting and meet our lending criteria. Thrivent Financial for Lutherans does not provide financing for operating expenses.

Q: What are Thrivent Financial for Lutherans' current interest rates?
A: Interest rates on Thrivent Financial for Lutherans' church loans are very competitive. View our current rates.

Q: What financing needs can Thrivent Financial for Lutherans help with?
A: Thrivent Financial for Lutherans' church loans present financial opportunities for a variety of projects. Thrivent Financial for Lutherans can help with both your construction and permanent financing needs. We offer funding for:

• Refinancing existing mortgage loans
• Construction of new buildings
• Complete renovations
• Improving accessibility
• Purchasing an organ
• Buying property for expansion
• Paving parking lots
• Repairing or replacing roofs
• Replacing heating and air conditioning systems
• Other capital improvements

Q: Does Thrivent Financial for Lutherans offer construction loans?
A:Thrivent Financial for Lutherans commits to providing long-term “permanent” financing. On the basis of Thrivent Financial for Lutherans' loan commitment, your congregation may need an interim short-term construction loan. Thrivent Financial Bank, a subsidiary of Thrivent Financial for Lutherans, now offers construction loans in a number of states. Please call us for more details. If you choose to work with a local lender or another institution for your interim construction loan, Thrivent Financial for Lutherans can assist you with the transfer of documentation to ensure a smooth transition.

Q: How are Thrivent Financial for Lutherans' rates determined?
A: Thrivent Financial for Lutherans bases its rates on a number of factors including relevant Treasury securities, CMBS (Commercial Mortgage Backed Securities) markets, overall volatility of the market and various risk parameters. The rates are not tied to one specific metric and typically do not fluctuate daily or with every change in the market, but they are reviewed on a periodic basis and adjusted as necessary. Thrivent Financial for Lutherans' goal is to offer favorable rates while delivering on its commitment of investment return for Thrivent Financial for Lutherans' members/product owners. As a non-profit entity that gives back to the Lutheran community through its fraternal operations, Thrivent Financial for Lutherans does not have the added margin of profit or overhead built into pricing that other financial institutions typically do.

Q: When should we complete and send in the loan application?
A: Once you begin to firm up your project plans, you should submit your loan application. For large construction projects, developers will typically want to ensure you have a firm commitment for financing before entering into a contract.

Q: Can we borrow money to assist with operational expense increases?
A: No. Thrivent Financial for Lutherans' loans cannot be used to finance operational budget shortfalls.

Q: Where can I find information about Thrivent Financial for Lutherans' church loans for my presentation to the church council or the congregation?
A: View a general overview of Thrivent Financial for Lutherans' Church Loan Program. For more specific information relevant to your project, our staff will be happy to provide assistance. Contact Us.

Q: Why should we consider financing from Thrivent Financial for Lutherans' church loans?
A: Thrivent Financial for Lutherans has been providing loans since 1905. In the process, we have become more knowledgeable and responsive than most other financial institutions to the specific needs of churches. Thrivent Financial for Lutherans' church loan staff works closely with all congregations to provide professional service and financial insight. (View general presentation.)

Q: How is the interest paid on our church loan used by Thrivent Financial for Lutherans?
A: Thrivent Financial for Lutherans' Church Loan Program is one investment portfolio within the larger corporate general account. The interest that is repaid by your congregation over the life of the loan is used to support commitments on products offered by Thrivent Financial (e.g., Life Insurance payouts). Also, the church loan portfolio, along with other investment assets, helps support Thrivent Financial programs to help those in need, strengthen not-for-profit organizations and provide community assistance.

Q: Can we pay off or pay down the loan early without a penalty if the church receives a large sum of money from an estate or a fundraiser?
A: The congregation may make payments, in addition to the required monthly payments without penalty, provided the funds did not originate from another lender. A prepayment penalty will apply when funds originated from other lenders and/or any other external sources are used. Prepayments will be applied immediately to the balance of the loan and they shorten the term of the loan. Monthly mortgage payments are not reduced, unless specifically requested by the congregation.

Q: Who can I talk to about applying for a church loan?
A: The easiest way to reach us is by calling us directly at 1-800-984-9425. You may also e-mail us at churchloan@thrivent.com.