Financial Services
Loan Program for the Plain Community
Anabaptist Financial
Anabaptist Financial is a non-profit corporation that qualifies as a tax-exempt entity by virtue of its mission, which is to preserve the Anabaptist way of life by enhancing conservative Anabaptist religious values. We provide financial services to conservative Anabaptist churches, families, and businesses while promoting Biblical stewardship, mutual aid, and brotherhood assistance through our low-cost loan program. The Loan Program helps Anabaptist families and businesses with fewer resources meet their needs using funds that have been placed with Anabaptist Financial by members of our conservative Anabaptist church communities who have excess resources.
Anabaptist Financial’s Loan Program is a channel for moving financial resources within conservative Anabaptist church communities. Funds received are placed into loans within our constituency church groups. Anabaptist Financial secured its tax-exempt status on a religious basis by demonstrating that our loan program enhances our conservative Anabaptist religious values by connecting clients in relationships that preserve our way of life and uphold our traditional values of mutual aid and brotherhood accountability.
Brotherhood Lending
If you desire to participate in the lending program by providing mutual aid to Anabaptist community members who are in need of brotherhood and support, please contact our office.
How Does Our Loans Program Work?
Anabaptist Financial provides financing to the conservative Anabaptist constituency for agricultural, commercial, and residential real estate loans. (Residential loans are not offered in all states.) We do not offer loans for automobiles and other consumer items.
Our goal is to promote brotherhood assistance and good stewardship connections among borrowers and lenders to advance the Kingdom of God within the Anabaptist brotherhood.
Anabaptist Financial offers loans to members in good standing of churches who adhere to the 1963 Mennonite Confession of Faith or similar earlier confessions.
Applicants must submit the appropriate loan application for their loan type, fully disclosing all assets, liabilities, expected costs, other applicable information, and tax returns from the previous two years.
To protect our clients, loans will be secured by filing a lien against collateral.
Our interest rate is variable and may be adjusted quarterly. Anabaptist Financial does not offer fixed-rate loans. Please contact our office for the current interest rate.
Loans are amortized over an agreed upon number of years in equal monthly payments.
Residential real estate loans may not exceed a term of 25 years, business real estate loans 20 years, and business operating loans 7 years.
Loans may not exceed 80% of the value of the property.
Generally, the loan payment, property tax, and brotherhood aid/insurance cost should not exceed 30-35% of net income. On business loans, debt service coverage ratio should exceed 1.35.
All loan collateral must be covered by a verified protection plan for fire, storm, and theft. Brotherhood aid plans are acceptable coverage.
Delinquent loans with no acceptable resolution will require a church-appointed oversight committee.
Why Choose Anabaptist Financial
Our clients participate in mutual aid through borrowing and lending. The funds that are placed at Anabaptist Financial assist borrowers who are in need, and the interest and principal payments from borrowers benefit the lenders. Participation in this network of individuals who share common doctrine and lifestyle holds unique value within the Anabaptist community by supporting these conservative Anabaptist values:
Clients know that their funds are being used for purposes that are in accordance with our religious beliefs.
We can provide loans that are protected by mutual aid sharing plans in lieu of insurance. Many banks do not accept church mutual aid plans.
We provide stewardship education to borrowers consistent with our lifestyle values, especially to young, first-time borrowers.
In the case of a loan default, we conduct resolutions in accordance with our religious beliefs and without foreclosure or legal proceedings.
We work with local churches to provide loans for members returning from domestic and foreign voluntary service assignments who may not have sufficient recent income history.
We do not impose a penalty for borrowers for non-conforming assets, such as homes with no electricity, etc.
We allow borrowers with construction loans to do the work themselves, rather than requiring a licensed contractor.
Contact Us
For more information about Anabaptist Financial or to see if you qualify to participate in our financial program please contact us.