Starting the Process


Here are some of the questions we’ve been asked.


Who can borrow from The UMDF?

Any United Methodist local church, organization, board or agency may borrow.

Why is The United Methodist Development Fund a good choice when considering a lending institution?

• The UMDF knows that often many loan institutions offer you incentives.We believe that The UMDF offers something different.

• The UMDF understands the relationship between proper facilities and local ministries.

• The payment schedule is often better than with local lending institutions.

• The interest on your loan can be used to help other United Methodist churches build and expand their facilities.

• Priority is given to racial/ethnic minority churches.

What steps does our church have to take to borrow money from The UMDF?

• The 2016 Book of Discipline outlines the process in paragraph 2544.

• Develop a plan for church development with your District Superintendent.

• The Plan must be reviewed and approved by your District Board of Church Location and Building.

• Complete and return the loan application form available from The Fund.

• Directors approve loans on a monthly basis.

What types of loans are offered by The UMDF?

  • Refinancing - UMDF assists churches of all sizes refinance existing mortgage(s). We can also consolidate multiple loans into one new refinanced loan, which usually results in a lower overall payment.
  • New Construction - UMDF can finance your church’s new construction and provide the long term financing all in one transaction.
  • Church Expansion - UMDF provides financing for expansion of existing church space. Many United Methodist Churches have also consolidated their existing long-term loan, with new funds for church expansion into one new loan.
  • Renovation - UMDF assists churches of all sizes with the financing for renovation projects. Renovation loans have favorable terms which begin at $25,000. Many United Methodist Churches have also consolidated their existing long term loan, with new funds for renovations into one new loan.
  • Church Purchases and Acquisitions - UMDF provides financing for the purchase of land or existing buildings.

What are the loan terms?

Please call for current loan rate


Up to 20 years

Do individual church members have to guarantee the loan?

Personal guarantees are never required.

Are pre-payments penalized?

Pre-payments are not penalized. Instead, we celebrate your success with you.

How can I get a loan application packet?

Contact our office and a packet will be sent out immediately. 

The United Methodist Development Fund Loan Administration Office
11709 Boulder Lane, Suite 220, Austin, Texas 78726


Who can invest in UMDF?

Any United Methodist individual, local church, organization, board or agency may invest. ​

What investment opportunities are available from The UMDF?

The UMDF offers five investment options:

  • One-Year Term investment
  • Two-Year Term investment
  • Three-Year Term investment
  • Four-Year Term investment
  • Five-Year Term investment
  • Flexible Demand investment
  • IRA's (Individual Retirement Accounts)

What Are the Terms of One-Year, Two-Year, Three-Year, Four-Year, and Five-Year Notes?

One-Year, Two-Year, Three-Year, Four-Year, and Five-Year notes are payable upon their maturity date. Withdrawal prior to their maturity date carries a penalty.​

What are the terms of the Flexible Demand investment?​

Flexible Demand notes are payable on demand. Amounts may be added or withdrawn not more than twice a month in increments of $100.00.​

Does UMDF offer IRAs (Individual Retirement Accounts)?

UMDF offers IRAs. An IRA is a savings account that offers tax advantages, making it an ideal way to save for your retirement.  Unlike 401(k)s, IRAs are accounts that you open on your own.  They can be opened at your bank, at a brokerage house, and at UMDF.

How secure is my investment?

Invested funds are loaned to local United Methodist churches, districts, city societies, district unions, mission institutions or conference church extension agencies. Those loans are secured by first mortgages on property purchased or buildings constructed with the loan funds. Strict guidelines are observed to make sure that congregations can sustain such loan payments. The Fund is also required to maintain a reserve of 5% of the principal balance of The Fund’s outstanding investment obligations.

Notes of The Fund are not insured by the Federal Deposit Insurance Corporation (FDIC) , or Securities Investor Protective Corporation (SIPC), or any other state or federally regulated institution.

You should also be aware that The Fund’s Notes are unsecured and that The Fund may call any of its Notes at any time upon three months prior written notice.

How is the interest rate established?

Interest rates are determined periodically by The Fund’s Board of Directors, taking into consideration the average rate of interest return from The Fund’s first-mortgage loans and current interest rates paid on similar types of investments. For current rates call 1-800-862-8633.

How are withdrawals handled?

The investor contacts The UMDF office in writing to request a withdrawal.

What are some of the options for use of the interest on my investment?

Interest income is paid directly to investors unless a different arrangement is requested. For example, interest may be reinvested in your account. If you specify in writing that you would rather have your interest income paid to your local church as part of your annual contribution or designated to the mission project of your choice, The Fund will process these payments according to your instructions.

If a husband and wife invest jointly, what happens if either dies?

Ownership passes automatically to the living spouse.

I would like to set up an account for a minor. Is this possible?

Yes, a custodial account can be established under the Uniform Gift to Minors Act. For additional information on such accounts please contact The UMDF office.


Monday – Thursday:  8:00 a.m. – 5:00 p.m. (CST) 
Friday:  8:30 a.m. – 2:30 p.m. (CST)


General:(800) 862.8633
(800) UMC-UMDF


The United Methodist Development Fund
11709 Boulder Lane, Suite 220
Austin, TX 78726


Regarding Loans:

Regarding Investments: