Business Details
50+ Years
experience
Trusted Low-Cost Loans for Lutheran Congregations
Established in 1960, we are a Christ-centered nonprofit organization dedicated to providing low-cost loans to support Lutheran congregations and affiliated organizations. Our mission focuses on enabling religious communities to undertake capital projects through flexible financing solutions, including construction, expansion, and refinancing options. Governed by a board of directors and funded through investment certificates, we combine financial expertise with a commitment to Christian values. Our loan programs prioritize projects that strengthen church missions, such as facility improvements, educational infrastructure, and worship spaces. With decades of experience, we offer competitive interest rates and tailored loan structures while maintaining transparency and accountability.Our operations are guided by a deep understanding of the unique needs of WELS and ELS religious organizations. By channeling investments into designated projects, we help congregations reduce overall borrowing costs. Our team ensures a streamlined application process and ongoing support for borrowers. We adhere to strict financial stewardship principles while fostering partnerships that advance Lutheran ministry nationwide. Our services are available across the United States to eligible religious institutions.
Services
Low-Cost Loans
Construction Financing
Refinancing Programs
Small Project Loans
Investment Certificates
Church Expansion Loans
School Facility Loans
Parsonage Construction
Organ Purchases
Roof Repairs
Details
- Year established: 1960
Highlights and features
- We offer low interest rates starting at 7.5% for church loans
- Our 5-year balloon terms provide flexibility for long-term projects
- Construction loans include interest-only payments for the first six months
- We support diverse projects from roof repairs to new school buildings
- Investment certificates allow donors to directly reduce loan costs for churches
Services
Low-Cost Loans
We provide affordable loans for Lutheran religious organizations to fund capital projects. Our financing supports church construction, school expansions, and facility renovations. Borrowers benefit from competitive 7.5% interest rates with 5-year balloon terms up to 30 years, requiring first-position mortgages for security.
Construction Loans
Our construction loans offer interest-only payments during the initial six-month building period. This financing covers new church construction, school buildings, and major renovations. Funds disburse incrementally as projects progress, reducing interest costs compared to traditional lenders while maintaining strict financial oversight.
Investment Certificates
Individuals and organizations can purchase loan certificates starting at $250 with terms from 1 to 5 years. These investments earn competitive interest rates while directly funding Lutheran ministry projects. Certificate holders may designate investments to specific congregations to reduce their borrowing costs through this dual-purpose financial instrument.
Refinancing Programs
We offer refinancing options for existing church mortgages through other institutions or previous LACE loans. The process follows standard application procedures with consideration for current liquidity positions. Designated investments from congregation members can improve approval chances for refinancing applications.
Small Project Loans
Our small loan program supports equipment purchases and capital improvements up to $165,000. These loans require minimum $100 monthly payments with terms up to 15 years. Applications must demonstrate clear project benefits for worship, education, or ministry activities while excluding operating expense funding.
Questions
What types of projects qualify for LACE loans?
We finance capital projects including church construction, school expansions, facility renovations, parsonage building, and major equipment purchases that support Lutheran ministry missions.
How do investment certificates work?
Purchase certificates starting at $250 with terms 1-5 years. Earn annual interest while funding Lutheran projects. Designate investments to specific congregations to reduce their loan costs.
What loan terms are available?
We offer 5-year balloon terms with 20, 25, or 30-year amortization schedules. Interest rates remain fixed at 7.5% throughout the loan period with first-position mortgage requirements.
How long does the loan process take?
Applications typically take 3-6 weeks. Submit completed forms with financial statements and borrowing resolutions. Title work usually takes less than 3 weeks once received.
Can we refinance existing loans?
Yes, we consider refinancing applications for both LACE and external loans based on current liquidity. The same application process applies with potential limitations.
