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 limits participation to Anabaptist people committed to 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 submit a completed 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. The cost of filing a mortgage and/or lien will be assumed by the borrower.

Adjusted interest rate

The variable interest rate will be indexed to equal the six-month Treasury bill plus an assigned base rate. 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. Anabaptist Financial does not offer fixed-rate loans at this time.

Monthly payments

Payments are amortized for monthly payments over a specified term of years, payable on the first day of the month. All late payments of principal or interest will incur a fee of $20.

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, and theft, and verified by a policy.

Loan origination fees

  • Loans up to $150,000: $550
  • Loans up to $400,000: $850
  • Loans up to $1,000,000: $1,500
  • Loans more than $1,000,000: $2,500

Add $100 to above fees when not using an attorney.

  • $20 Wire Transfer (if provided by AF)
  • $150 (residential) Title Search (if provided by AF)
  • $250 (commercial) Title Search (if provided by AF)
  • $250 Construction Loan Fee (for construction loans)
  • $25 Late Document Fee (if applicable)
  • $75 Minimum Loan Satisfaction Fee
  • Lien recording fee (varies by courthouse and state)

All assessed fees will be paid by the borrower at closing unless otherwise arranged.

Required information

  • Value of collateral (appraisal may be required)
  • Title Search (Title Certificate may be required)
  • Last two years of tax returns

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 failure to pay. If no favorable solution is reached, or regular payments are not resumed, 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.

Private Lending and Loans

Anabaptist Financial functions as a third-party facilitator when assisting lenders and borrowers in a private loan arrangement. AF produces the loan documents and offers third-party counsel. In addition, AF can file a mortgage or lien, if desired. The lender determines the loan parameters and assumes all the risk; AF does not provide security of private notes. Loan payments are made directly to AF. Note: Private lenders are not protected with the security of the investments within the investment pool.