FREQUENTLY ASKED QUESTIONS ABOUT OUR LOAN PROGRAM

How does your loan program fit in with the Texas Methodist Foundation’s mission?

As an organization dedicated to empowering the Church in the achievement of her God-appointed missions, we are committed to assisting United Methodist congregations by offering resources that help grow and mature ministries. Helping churches avoid financial challenges is also priority in order to strengthen their ability to reach out to surrounding communities.

How do your Loan and Stewardship Services departments work together?

Our Loan staff partners with our Stewardship Services area to provide complete consulting designed to meet the individual needs of United Methodist churches. This includes working with stewardship consultants to evaluate the feasibility of expansion projects, including capital campaign potential, debt analysis, and funding sources.

What differentiates the Foundation from other lending institutions?

Our loan officers consult exclusively with United Methodist churches in Texas allowing us to understand the denominational structure and discipline, and how it relates to church financing. We also offer direction through our cash-flow model analysis and by following up with churches after the loan process is complete.

What’s the advantage of using your cash-flow model?

With the guidance of our loan officers, this model can help your church determine a safe project limit, based on your operating budget and other factors, or solve for a capital campaign required to support your desired project.

Do you offer support after a loan closes?

The Foundation loan staff continues to be available to your church for monitoring cash flows and appropriate structuring of debt. This ensures debt can be managed without compromising other programs.

Where does the Texas Methodist Foundation get the money to lend to local churches?

Loans for construction projects and other capital needs for United Methodist churches and institutions are funded at competitive rates through investments in the Methodist Loan Fund. This fund pays rates consistently higher than most bank money market and CD rates, making it an attractive choice for mission-conscious investors.

How does the Foundation use loan interest?

Unlike other financial institutions, loan interest earned by the Foundation supports United Methodist ministries.

What types of projects fit within your loan program?

We offer loans to United Methodist churches and institutions in Texas to finance new construction and building improvements; permanent mortgage loans for buildings, parsonages, or land; and loans for computers, copiers, vehicles and other equipment.