Free Methodist Investment & Loan Fund


Thank you for considering the Free Methodist Investment & Loan Fund for your financing needs. We are pleased with and are grateful for your consideration. 

Please contact us for a loan application:

Joshua Adams, Manager of Loan Fund Operations
800.325.8975 ext. 826

Mark Olson, President/CEO
800.325.8975 ext. 803

Bargain sale

What is a Bargain Sale?
A bargain sale is a unique opportunity for non-profits to achieve significant outright gifts in support of their mission. This charitable planning technique is often overlooked and definitely underused, and has many applications. In short, a bargain sale is the purchase of property (securities, real estate, etc.) for less than its fair market value. The difference between the fair market value and the sales price constitutes a charitable gift. The donor/seller is therefore able to recoup some cash, perhaps equal to their investment in the property, and use the balance as a charitable gift.

How can the Free Methodist Foundation help?
The Free Methodist Foundation has assisted ministries in communicating and executing bargain sales.

Is a bargain sale appropriate for our situation?
Bargain Sales requirements can be confusing and depend on the circumstances.  Tim Burkhart is the Vice President of Estate & Gift Planning, and he would be happy to speak with you and assist you in the process.

For more information, please contact Tim Burkhart:


The Free Methodist Loan Fund has two general guidelines that will help you determine how much you may qualify for. First, the Free Methodist Loan Fund is only authorized to loan up to 75% of what the property is appraised at. Therefore, if the property is appraised for $100,000 the largest potential loan would be $75,000.
Second, a maximum of 30% of a ministries’ revenue (excluding capital funds) can be used to service debt.

Different from most lenders, the Free Methodist Loan Fund does not charge any points or fees for new loans. The ministry normally incurs out of pocket expenses to cover the cost of an appraisal, mortgage preparation, and title insurance. Title insurance and appraisals will depend on the amount of the loan. Below are approximate rates for the state of Michigan. Please contact a local appraiser, attorney, and title company in your state to get a more accurate price.

The cost of appraisal will very greatly by appraiser and region. Please contact a local appraiser to get an accurate estimate for a limited summary appraisal. Since the price may vary greatly between appraisers, it may be beneficial to contact multiple appraisers.

The current loan rate can be determined by calling (800) 325-8975.

The Loan Fund committee at The Free Methodist Foundation and the Investment Committee of its board of directors review and set loan rates regularly.

Loans under $250,000 can be processed in approximately four weeks. Loans for more than $250,000 may take closer to six weeks because they normally involve more steps including board approval. The amount of time to fully process a loan may be reduced through a high degree of responsiveness by the church.

After approval you will receive an approval letter with the remaining requirements. The time to complete these requirements varies based on the responsiveness of the church, Title Company, and appraiser. Normally we find that these take around four weeks.

Step 1- Preparation and Submission of Application
   Complete Application with Signatures (Requires Conference Superintend Signature)
   Attached Year To Date and Previous Year Financial Statements and Budget

Step 2- Review, Analysis, and Decision by FMF

Step 3- If approved, the applicable documents from the list below are required:
   Articles of Incorporation
   Property Deed
   Minutes of the Local Society Authorizing the Loan
   Copy of Conference BOA Authorizing the Loan
   Release to Encumber
   Appraisal
   Copy of Purchase Agreement, if applicable
   Copy of Construction Agreement with General Contractor
   Promissory Note
   First Mortgage or Deed of Trust
   Title Insurance Policy
   Certificate of Fire and Extended Coverage Insurance

Step 4- FMF disburse funds by Electronic Transfer or check.

There is no penalty for paying the loan off early with funds from operations or capital campaigns. We strongly encourage organizations to pay off their loan as soon as possible. However, if the organization refinances the loan with another institution within three years after the closing date, the following penalties will be assessed:
   3.00% of the full payoff amount at the time of the refinance if refinanced within the first year after the closing date.
   2.00% of the full payoff amount at the time of the refinance if refinanced within the second year after the closing date.
   1.00% of the full payoff amount at the time of the refinance if refinanced within the third year after the closing date.

Joshua Adams, Manager of Loan Fund Ops: 800-325-8975 (toll free) | 517-841-5826 (direct) | 
Mark Olson, President/CEO: 800-325-8975 (toll free) | 517-841-5803 (direct) | 

In most cases, the Free Methodist Loan Fund can electronically transfer funds directly into your bank account. Checks can also be mailed.

Yes, interest accrues daily on the unpaid balance. The ministry is asked to make monthly interest payments while in the draw phase. These payments are applied to interest only. If a payment is received early and the payment is more than the amount of interest that has accrued, the excess will be carried forward and offset the amount of interest due the next month.

The church receives the current rate in effect at the time the entire application is received at The Free Methodist Foundation. If approved, the church will be guaranteed this rate for five years from the date the loan is approved. After five years the loan will be adjusted up or down to the current rate in effect at that time.

The rate generally adjusts to the base rate in effect for new loans at that time. The base loan rate is determined by a wide variety of factors including loan demand, market conditions, and dollars available to loan.

In order to receive a release to encumber, society minutes are required by the denomination. If the loan has been authorized by the church board, you will be asked to submit society minutes authorizing the church board to act.

When the society of the church votes to approve the loan, the minutes need to specifically state the amount of the loan, the understanding that a lien will be placed on the property, and state the person who is authorized on the behalf of the church to sign any documents necessary. Please see the example below. 

“RESOLVED, that [Your Name Here], is authorized to obtain a loan from The Free Methodist Foundation and to grant to the Foundation a mortgage on the property of the ministry for up to [$the amount], and that the person authorized to sign and deliver the Promissory Note, the Mortgage and any other document(s) needed to consummate the transaction is ___________________________, who is the ministries’ ____________________________ (title).”

When the conference board of administration votes to approve the loan, the minutes need to specifically state the amount of the loan, the understanding that a lien will be placed on the property, understanding that the conference is signing the note as co-maker, and state the person who is authorized on the behalf of the conference to sign any documents necessary. Please see the example below.

“RESOLVED, that [Conference Name] approves of [Church Name Requesting Loan] obtaining a loan from The Free Methodist Foundation, and of the church granting to the Foundation a mortgage on the Church’s property for up to [Enter Amount]; that the Conference agrees to sign as co-maker the Promissory Note for the loan, recognizing that the Conference is thereby obligated to make the loan payments at any time if the Church does not; and that the person authorized to sign and deliver the Promissory Note and any other document(s) needed to consummate the transaction on behalf of the Conference is __________________________, who is the Conference’s ________________________ (title).

New loan recipients do not pay points or processing fees for loan services.  Loan recipients are required to pay actual expenses for loan documentation such as mortgage, appraisal, and title insurance fees.  The terms of our loans are 10, 15, 20, and 25 years.  The rate will be subject to adjustment at five year intervals.  The internal loan committee at the Free Methodist Foundation (FMF) reviews all loan applications.  Board members of The Free Methodist Foundation also review and approve loan applications above $250,000.  All loan decisions are based upon an analysis of financial ratios and guidelines, relevant circumstances and the availability of funds.  No loan request is guaranteed approval.

All loans are guided by requirements defined by the Free Methodist Book of Discipline and the policies described in our offering circular.  Loans are secured by first mortgages and conferences co-sign all loans to churches.  Site visits may be required for loans exceeding $250,000.  The Foundation monitors compliance with securities regulations in each state that offers certificates.



Our calling is to enable you to experience the joy & peace of building your financial life and legacy to its God given potential.

The Free Methodist Investment & Loan Fund
is a ministry of FMF Financial Services.


Monday: 8:00 am – 5:00 pm
Tuesday: 8:00 am – 5:00 pm
Wednesday: 8:00 am – 5:00 pm
Thursday: 8:00 am – 5:00 pm
Friday: 8:00 am – 4:00 pm
Saturday: Closed
Sunday: Closed


8050 Spring Arbor Rd.
PO Box 580
Spring Arbor, MI 49283
phone: (517) 750-2727
fax: (517) 750-2752

Variable rate adjusted from time to time. Interest on all certificates accrues daily. A statement is provided each quarter reflecting the principal of each certificate. Investment certificates are unsecured general debt obligations of The Free Methodist Foundation. Investment is subject to risks, which are described in our Offering Circular, including: no sinking fund, no trust indenture, no FMCUSA guarantee, not FDIC or SIPC insured, not bank deposits or bank obligations, no public market, reinvestment rates may change, loans may be secured by special purpose property, borrowers may be dependent on contributions for loan repayment. This is not an offer to sell you our securities and we are not soliciting you to buy our securities. The offer is made solely by the Offering Circular. We will offer and sell our securities only in states where authorized.