Frequently Asked Questions

HM Financial serves both individuals and congregations that are affiliated with the United Methodist, Global Methodist or other Wesleyan based congregations in Indiana and the surrounding states. Some services are limited only to congregations, such as borrowing.

Yes. HM Financial is a 501(c)3 charitable organization. All gifts made to HM Financial qualify as tax deductible charitable gifts. Investment are not considered gifts as the investor may withdraw the investment.

An annual audit is conducted by a CPA firm. An audit report is supplied to all investors.

HM Financial does not have deposit insurance. We are not a bank or other financial institution, therefore we cannot be insured by the FDIC. We are approved by the Indiana Securities Division to accept investments. Your investment purchases a security interest in our loan pool. Loans are made only to churches and ministries in Indiana, Illinois, and Kentucky. We maintain a very high credit standard to minimize the risk of investment loss. To date, we have had no losses from loans issued and have never had to foreclose on a church property to collect the payment.

The funds from investments in Demand and Certificates of Participation accounts are pooled into a fund used to make loans to churches and ministries. 10% of the funds are required to be invested in fixed income securities as a reserve for cash flow purposes.

No, investments in Heartland Methodist Financial earn a competitive rate of interest. The interest earned on your investment is taxable interest.

Yes. To set up online access contact Sue Cunningham or Chris Jacobs to begin the process.

Certificates earn a fixed rate of interest for their term. Demand accounts are subject to periodic change in interest rates.

On 1, 3, and 5 year certificates, you can choose to receive interest payments monthly, quarterly or annually, or to have interest reinvested. On 6 and 9 month certificates, interest will be paid at maturity. On 18-month certificates, interest will be paid or reinvested at 12 months and again at maturity.

No. You, your parents, grandparents, children, or grandchildren must be affiliated with a Wesleyan theologically based church or ministry such as a United Methodist, Global Methodist or American Methodist Episcopal church.

Certificates will automatically renew unless you request a withdrawal or move to a state we are not authorized to serve. At maturity, you can add to your Certificate, make full or partial withdrawal, or change to a different maturity term.

Yes. Ten days from the date of maturity.

Our deposit interest rates are established by our Board of Directors. It is our goal to offer rates higher than most other financial institutions. However, there is no attempt to have changes in our rates track changes in the Federal Discount Rate.

Yes. Faxes or e-mail are fine if the signature matches the authorized signature that we have on file.

The Heartland Methodist Financial Board reviews the rates, and normally rates change the 1st of the month following the quarterly board meeting. However, rates may change more often depending on loan activity. Remember, the rate issued on a Certificate remains the same for the full term of that Certificate, but when the Demand rates are changed, that changes the rate paid on current Demand accounts as well as any new accounts.

The Indiana Securities Division and the securities administrators of the other states where we offer Demand Deposits and Certificates of Participation require that we provide each potential depositor a copy of the Offering Circular before Heartland Methodist Financial can accept a deposit from that person. We cannot accept a deposit from someone who has not received a copy of the Offering Circular. The Offering Circular is a full disclosure document that tells what we are about; why we take deposits; what we do with the deposits; what we offer in return for the deposits and the potential risks associated with our deposits.

Only churches or ministries may apply for a loan. Heartland Methodist Financial does not make loans to individuals.

Heartland Methodist Financial offers mortgage loans for purchases, construction or renovation of buildings or land. We also offer revolving lines for credit with appropriate collateral.

Contact our Loan Officer, George Davis, and he can walk you through the simple process. You will need to download our short 2 page application from this website. Complete the application and provide the required documentation noted at the end of the application and then return the entire packet to Heartland Methodist Financial.

Yes. The interest charged for loans is market competitive. The interest generated from the loan pool is used to pay the operating costs of Heartland Methodist Financial and our investors for the use of their funds.