Loans Policies

Anabaptist Financial offers a loans program within the Anabaptist faith by providing loans for business real estate, business operations, and home mortgages. We do not offer consumer loans, such as those for automobiles and consumer items. The overarching principle guiding our loan program is to advance the Kingdom of God and enhance financial fellowship by facilitating mutual aid with mutual gain within the brotherhood.

To achieve advancement and fellowship in the kingdom, Anabaptist Financial reinvests in Anabaptist people committed to establishing themselves in the Anabaptist community in a manner consistent with biblical truths, as defined in the 1963 Mennonite Confession of Faith or earlier similar confessions.

Loan application

Interested parties wishing to obtain funds as a borrower must fill out a loan application, showing all assets, liabilities, expected costs, and other applicable information. In addition, applications must be accompanied by copies of the previous two years of tax returns.

Mortgage and liens

If the loan application is approved, a mortgage will be filed on real estate loans, as well as a lien on other loans. This filing is done to protect the investors. All responsibility and cost of filing a mortgage will be assumed by the borrower, unless the loan is not associated with a purchase. If a lien is filed, Anabaptist Financial assumes the responsibility of filing, however the borrower still assumes the cost of the lien.

Adjusted interest rate

The variable interest rate is adjusted quarterly and indexed to equal the six-month Treasury bill plus the base rates described below. Adjustments to the variable interest rate occur quarterly on January 1, April 1, July 1, and October 1 of each calendar year, regardless of any interim change to the six-month Treasury bill. Adjustments are indexed to equal the previous month's Treasury bill on December 1, March 1, June 1, and September 1 to the nearest 1/8 of 1 percent, plus the base rates.

Base rates

Home mortgage loans: Six-month Treasury bill, plus 2.00 percent

Business real estate loans: Six-month Treasury bill, plus 2.25 percent

Business operating loans: Six-month Treasury bill, plus 3 percent

For a three-year adjustable rate mortgage, add 0.50 percent to loan rates listed above. Higher rates may apply based on borrower's information.

Monthly payments

Payments are amortized for monthly payments over a specified term of years, payable on the first day of the month.

Term limit

Real estate loans will not exceed a term limit of 25 years. Business operating loans will not exceed a term limit of 10 years.

Loan to value percent

Loans will supply no greater than 85 percent of the borrower's purchase price or of the appraised value. When funding new construction, the 85 percent is determined by the finished cost. In the event of a guaranty provided by a qualified cosigner, a loan providing up to 100 percent may be available.

Protection plan

All collateralized or mortgaged items must be covered by a protection plan for fire, storm, or theft, and verified by a policy.

Loan document preparation fees

Borrower pays all associated fees:

$ 500 Document Preparation Fee when using a lawyer

$ 600 Document Preparation Fee when not using a lawyer

$ 20 Wire Transfer Fee (if provided by AF)

$150 Title Search (if provided by AF)

Mortgage recording fee (This varies with each courthouse and state)

Required information

Value of collateral (Appraisal may be required)

Title Search (Title Certificate may be required)

Last Two years of tax returns

Late payment fee

All late payments of principal or interest will incur a fee of $20. Payments must be postmarked by the first of the month.

Loan default plan

In the event a borrower fails to make payment within 30 days after the due date, an investigation will be conducted to determine the reason for the default. If no favorable solution is reached, or full payment is not received within the next 30 days, a committee will be appointed to manage the finances of the borrower's operation. The committee will consist of one individual of the borrower's choice from within the congregation, one individual from Anabaptist Financial, and one individual mutually agreed upon by the borrower and Anabaptist Financial.

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