At times, as an Alliance district, you may have the opportunity to purchase property for a future church site before the congregation has the ability to assume the monthly loan payments. While Orchard Alliance does not participate in land speculation when the appreciation of land value is a necessary condition for the repayment of a loan, you may apply for a district land purchase loan under the following criteria:
- The property under consideration must be unimproved. (Improved property will only be considered as long as the improvements add no significant value to the property.)
- The church body for which the property is intended must be an extension church. If this is unclear, the Orchard Alliance board of directors will determine whether or not the church in question should be considered an extension church.
- The church body for which the property is intended must already be in existence and worshipping together.
- You must demonstrate that the property is in a prime target area for the church.
- Similar property should not be readily available, due either to escalating prices or to lack of other vacant lots; or the property should be demonstrated to be significantly underpriced.
- You, as the district, must have 25 percent equity in the property. If you are not able to provide a cash down payment of at least 25 percent, other debt-free district property may be used as collateral.
- You, as the district, agree to accept full responsibility for monthly loan payments.
- All existing Orchard Alliance loans to your district, or for which the district has guaranteed payments, must be current.
Send us your DLP Loan questions.