The River Conference of the Free Methodist Church

Obtaining a Property Loan

Obtaining a loan for capital improvement or the purchase of property

Loan Requirements – If you are getting a loan for either capital improvements to your existing property or buying a new property, the following outlines the requirements that The River Conference (TRC) has set forth.

STEP 1: Read ¶6400-6410 of FMC’s Book of Discipline

STEP 2: Contact The Free Methodist Foundation (FMF) to determine what you qualify for and begin gathering the necessary paperwork.

STEP 3: TRC’s Property Team must review and approve the purchase of any property and/or building as well as any capital improvements greater than $10,000. They typically meet on the second Thursday of every month (except for July and December).

Proposals must be submitted to our Property Manager, Dan Lincoln, at [email protected]. He will then place your request on the next meeting’s agenda. The following paperwork must be submitted before the request is placed on the Property Team Agenda:

  • FMC’s Application to Purchase Property – If approved by TRC, we will sign and return this application to you. Please retain this copy as you will need it to complete the paperwork for FMF.
  • Year-To-Date Profit & Loss Statement and Balance Sheet
  • Prior Year’s Profit & Loss Statement and Balance Sheet
  • Current Year’s Budget
  • Articles of Incorporation
  • Minutes of the Local Society Authorizing the Purchase of the property
  • Copy of your current Insurance Policy

STEP 4: TRC’s Property Team approves/denies the request to purchase property.

The Property Manager will let you know the decision as soon as possible. He will explain any reasons for any denial, and you will have an opportunity to resubmit the request after rectifying any of the Property Team’s objections. In some cases, the Property Manager will inspect the prospective property to verify its value and to highlight any potential problems.

STEP 5: If approved by the Property Team, they will make a recommendation to TRC’s Board of Directors to allow the purchase of the property. TRC’s Board meets the third Thursday of every month (except for July and December). The Board will vote to approve or deny the request.

STEP 6: If the Board of Directors approves the purchase of the property, you will then begin the process of securing a loan from the Free Methodist Foundation or other lending organization.


A Trust Clause MUST be included in the Title of the Property and should state:
The property is held in irrevocable trust for the Free Methodist Church – USA (incorporated as “The Free Methodist Church of North America”) and is subject to all provisions of its Book of Discipline. “Property” includes all houses of worship existing now or later constructed on the property. The following additional provisions apply to the trust:

  • all seats shall be forever free;
  • all trustees and their successors, any society or congregation, and all entities or persons with any interest in the property shall permit a minister to hold religious services on the property if the minister is authorized under the Book of Discipline and holds services in accordance with it.
  • The property may be sold and the proceeds disposed of only in accordance with the Book of Discipline.
STEP 7: Preparation and Submission of Application. This was done in Step 3 and sent into TRC’s Property Team.

  • Complete Application with Signatures (Requires Conference Superintendent Signature)
  • Attached Year To Date and Previous Year Financial Statements and Budget

STEP 8: Review, Analysis, and Decision by FMF

STEP 9: 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 10: FMF disburse funds by Electronic Transfer or check.

Important Documents