UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                  FORM 10-KSB/A
                                (Amendment No. 3)


[X]  Annual Report Under Section 13 or 15(d) of the  Securities  Exchange Act of
     1934 For the Fiscal Year Ended December 31, 2007

         or

[    ] Transition  Report Under Section 13 or 15(d) of the  Securities  Exchange
     Act of 1934 For the Transition Period from __________ to __________.



                        Commission File Number 000-25919

                        American Church Mortgage Company

              Incorporated Under the Laws of the State of Minnesota
                       I.R.S. Employer Identification No.
                                   41-1793975

                            10237 Yellow Circle Drive
                              Minnetonka, MN 55343
                            Telephone: (952) 945-9455

Securities registered under Section 12(b) of the Exchange Act: None

Securities registered under Section 12(g) of the Exchange Act: Common Stock $.01
par value

Check whether the issuer is not required to file reports  pursuant to Section 13
or 15(d) of the Exchange Act. Yes [ ] No [X]

Check  whether the issuer (1) filed all reports  required to be filed by Section
13 or 15(d) of the  Exchange  Act during the past 12 months (or for such shorter
period that the registrant was required to file such reports),  and (2) has been
subject to such filing requirements for the past 90 days. Yes [X] No [ ]

Check if there is no disclosure of delinquent  filers in response to Item 405 of
Regulation S-B contained in this form, and no disclosure  will be contained,  to
the  best  of  registrant's   knowledge,  in  definitive  proxy  or  information
statements  incorporated  by  reference  in Part III of this From  10-KSB or any
amendment to this Form 10-KSB [X]

Indicate by check mark whether the  registrant is a shell company (as defined in
Rule 12b-2 of the Exchange Act). Yes [ ] No [X]

              Revenues for its most recent fiscal year: $3,947,690

State the aggregate market value of the voting and non-voting common equity held
by non-affiliates  computed by reference to the price at which the common equity
was sold,  or the average bid and asked  price of such  common  equity,  as of a
specified date within the past 60 days: Not applicable.

The number of shares outstanding of the issuer's common stock as of February 27,
2009 was:

                  2,472,081 Shares of Common Stock Outstanding

                      DOCUMENTS INCORPORATED BY REFERENCE:

                                      None

    Transitional Small Business Disclosure Format (Check one): Yes [ ] No [X]
--------------------------------------------------------------------------------

<PAGE>



                                Explanatory Note



This Amendment No. 3 on Form 10-KSB/A (the  "Amendment") to the Annual Report on
Form 10-KSB of American Church  Mortgage  Company (the "Company") for the period
ended  December 31, 2007,  which was  originally  filed with the  Securities and
Exchange  Commission on March 28, 2008 (the  "Original  Filing"),  and which was
amended on April 29, 2008 (the "First Amendment"), and again on December 5, 2008
(the "Second Amendment") is being filed to amend the Original Filing as follows:

As a result of a comment letter from the Securities  Exchange  Commission  dated
February 13, 2009, in part  concerning  the Company's Form 10-KSB for the fiscal
year ended  December  31,  2007,  the  authorized  officers of the  Company,  in
consultation  with Boulay,  Heutmaker,  Zibell & Co.,  P.L.L.P.,  the  Company's
independent  registered  public  accounting  firm,  are filing this Amendment to
amend Item 7.  "Financial  Statements"  in order to change the  presentation  of
interest expense to be included as a component of net interest income instead of
within other expense. The Company is in agreement with the Staff comments and is
taking  action  necessary to amend the above  annual  filing  accordingly.  This
Amendment  does  not  change  the  Company's   reported   assets,   liabilities,
stockholders'  equity or the Company's net income for the period ended  December
31, 2007. In addition, the Company changed the presentation of the provision for
losses  on  mortgage  loans  receivable  and  bonds to show  these  accounts  as
components of net interest income.

In addition,  pursuant to the rules of the SEC,  this  Amendment  also  includes
certifications  executed  as of the date of this Form  10-KSB/A  as  required by
Section 302 and 906 of the  Sarbanes-Oxley  Act of 2002. The  certifications are
attached to this Form 10-KSB/A as Exhibits 31.1 and 32.1.

Except as stated herein,  this Form 10-KSB/A does not reflect  events  occurring
after  the date of the  Original  Filing  and no  attempt  has been made in this
Annual  Report  on Form  10-KSB/A  to  modify or  update  other  disclosures  as
presented in the Original Filing.


                        AMERICAN CHURCH MORTGAGE COMPANY
                                  FORM 10-KSB/A

<TABLE>
<CAPTION>

                                      INDEX
                                                                                                                   Page
                                                                                                                    No.

                                     PART II

<S>           <C>                                                                                                   <C>
Item 7.       Financial Statements..................................................................................F-1


              Report of Independent Registered Public Accounting Firm ..............................................F-2

              Balance Sheets
              December 31, 2007 and 2006 ...........................................................................F-3

              Statements of Operations
              Years Ended December 31, 2007 and 2006 ...............................................................F-5

              Statements of Stockholders' Equity
              December 31, 2007 and 2006............................................................................F-6

              Statements of Cash Flows
              Years Ended December 31, 2007 and 2006................................................................F-7

              Notes to Financial Statements.........................................................................F-9

Item 13.      Exhibits..............................................................................................  3

Signatures..........................................................................................................  4
</TABLE>
<PAGE>



                                     PART II

Item 7. Financial Statements

The Report of  Independent  Registered  Public  Accounting  Firm,  the Financial
Statements  and the notes  thereto are  included  in this Annual  Report on Form
10-KSB/A beginning on Page F-1.


Item 13. Exhibits

Exhibit No.       Title

31.1    Certification pursuant to Section 302 of the Sarbanes Oxley Act of 2002
32.1    Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to
        Section 906 of the Sarbanes Oxley Act of 2002







                                       3
<PAGE>




                        AMERICAN CHURCH MORTGAGE COMPANY

                              Minnetonka, Minnesota

                              Financial Statements

                           December 31, 2007 and 2006












                                       F-1
<PAGE>




[GRAPHIC OMITTED][GRAPHIC OMITTED]


             REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM


Board of Directors
American Church Mortgage Company
Minnetonka, Minnesota

We have audited the  accompanying  balance  sheets of American  Church  Mortgage
Company  as of  December  31,  2007  and  2006  and the  related  statements  of
operations,  stockholders'  equity,  and cash  flows for the years  then  ended.
American Church Mortgage Company's management is responsible for these financial
statements.  Our  responsibility  is to express  an  opinion on these  financial
statements based on our audits.

We conducted our audits in accordance  with the standards of the Public  Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements  are free of material  misstatement.  The Company is not  required to
have,  nor were we engaged to perform,  an audit of its  internal  control  over
financial reporting.  Our audit included  consideration of internal control over
financial  reporting  as  a  basis  for  designing  audit  procedures  that  are
appropriate  in the  circumstances,  but not for the  purpose of  expressing  an
opinion on the  effectiveness  of the company's  internal control over financial
reporting.  Accordingly,  we express  no such  opinion.  An audit also  includes
examining,  on a test basis,  evidence supporting the amounts and disclosures in
the  financial   statements,   assessing  the  accounting  principles  used  and
significant  estimates  made by  management,  as well as evaluating  the overall
financial  statement  presentation.   We  believe  that  our  audits  provide  a
reasonable basis for our opinion.

In our opinion,  the financial  statements  referred to above present fairly, in
all  material  respects,  the  financial  position of American  Church  Mortgage
Company as of December  31, 2007 and 2006,  and the results of their  operations
and their cash flows for the years then ended,  in  conformity  with  accounting
principles generally accepted in the United States of America.


                                    /s/ Boulay, Heutmaker, Zibell & Co. P.L.L.P.
                                                    Certified Public Accountants

Minneapolis, Minnesota
March 28, 2008 except as to Note 9
               which is as of March 5, 2009


                                      F-2
<PAGE>



                        AMERICAN CHURCH MORTGAGE COMPANY

                                 Balance Sheets




<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------------
                                                                                               December 31
                        ASSETS                                                           2007                   2006

-----------------------------------------------------------------------------------------------------------------------------------


Current Assets
<S>                                                                                 <C>                     <C>
    Cash and equivalents                                                            $     285,118           $  232,258
    Accounts receivable                                                                   112,546              136,709
    Interest receivable                                                                   151,105              164,923
    Current maturities of mortgage loans receivable, net of
          allowance of $72,056 and $97,262 at
          December 31, 2007 and 2006, respectively                                        907,812            3,073,619
    Current maturities of bond portfolio                                                   41,000               79,000
    Prepaid expenses                                                                        7,072                8,372
                                                                                     ------------         ------------
            Total current assets                                                        1,504,653            3,694,881


Mortgage Loans Receivable, net of current maturities                                   33,061,115           34,779,117

Real Estate Held for Sale, net of impairment reserve of                                 1,566,561            1,125,190
    $635,286 and $1,196,168 at December 31, 2007 and
    2006, respectively

Deferred Secured Investor Certificates Offering Costs,
    net of accumulated amortization of $871,437 and
    $706,022 at December 31, 2007 and 2006, respectively                                  700,479              852,720

Deferred Line of Credit Costs, net of accumulated
    amortization of $36,652 at December 31, 2007                                          227,278                    -

Bond Portfolio, net of current maturities and allowance
    of $100,000 at December 31, 2007                                                   11,222,713            9,471,697

Other                                                                                            -              60,000
                                                                                       ----------           ----------

            Total assets                                                              $48,282,799          $49,983,605
                                                                                       ==========           ==========


Notes to Financial Statements are an integral part of this Statement.

</TABLE>




                                      F-3
<PAGE>


                        AMERICAN CHURCH MORTGAGE COMPANY

                                 Balance Sheets
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------------
                                                                                                  December 31
        LIABILITIES AND STOCKHOLDERS' EQUITY                                                2007                  2006
-----------------------------------------------------------------------------------------------------------------------------------


<S>                                                                                    <C>                <C>
Current Liabilities
    Current maturities of secured investor certificates                                $   2,197,000      $   3,169,000
    Line of credit                                                                         3,350,000          1,166,000
    Accounts payable                                                                          28,941             21,796
    Accounts payable - related party                                                        -                     4,515
    Accrued expenses                                                                          18,022           -
    Building funds payable                                                                    50,000             27,000
    Current maturities of deferred income                                                     30,412             62,023
    Dividends payable                                                                        124,680            397,418
                                                                                          ----------         ----------
            Total current liabilities                                                      5,799,055          4,847,752


Deferred Income, net of current maturities                                                   596,164            611,891


Secured Investor Certificates, Series A                                                    6,008,000          8,807,000
Secured Investor Certificates, Series B                                                   14,626,000         14,662,000

Stockholders' Equity
    Common stock, par value $.01 per share
        Authorized, 30,000,000 shares
        Issued and outstanding, 2,493,595 at December 31, 2007
            and 2006                                                                          24,936             24,936
    Additional paid-in capital                                                            22,927,644         22,927,644
    Accumulated deficit                                                                   (1,699,000)        (1,897,618)
                                                                                         -----------        -----------
            Total stockholders' equity                                                    21,253,580         21,054,962
                                                                                          ----------         ----------

            Total liabilities and equity                                                 $48,282,799        $49,983,605
                                                                                          ==========         ==========



Notes to Financial Statements are an integral part of this Statement.
</TABLE>



                                      F-3
<PAGE>


                        AMERICAN CHURCH MORTGAGE COMPANY

                            Statements of Operations
<TABLE>
<CAPTION>


------------------------------------------------------------------------------------------------------------------------------------
                                                                                               Years Ended December 31
                                                                                              2007                 2006

-----------------------------------------------------------------------------------------------------------------------------------


<S>                                                                                        <C>                <C>
Interest Income                                                                            $3,947,690         $3,927,765

 Interest Expense                                                                           1,778,715          1,724,986
                                                                                            ---------          ---------

Net Interest Income                                                                         2,168,975          2,202,779

  Provision for losses on mortgage loans receivable                                            33,101              8,682
  Provision for losses on bonds                                                               100,000                  -
                                                                                              -------          ---------
Total provision for losses on mortgage loans and bonds                                        133,101              8,682
                                                                                              -------          ---------

Net Interest Income after provision for mortgage and bond losses                            2,035,874          2,194,097

Operating Expenses
  Other operating expenses                                                                    965,322            834,764
  Real estate impairment loss                                                                 217,362            205,165
                                                                                            ---------          ---------
     Total operating expenses                                                               1,182,684          1,039,929
                                                                                            ---------          ---------

Income Taxes                                                                                    -                 -
                                                                                            ---------          ---------

Net Income                                                                                 $  853,190         $1,154,168
                                                                                            =========          =========

Basic and Diluted Income Per Common Share                                                  $      .34         $      .46
                                                                                            =========          =========

Weighted Average Common Shares Outstanding                                                  2,493,595          2,536,351
                                                                                           ==========         ==========


Notes to Financial Statements are an integral part of this Statement.
</TABLE>


                                      F-5

<PAGE>


                        AMERICAN CHURCH MORTGAGE COMPANY

                       Statements of Stockholders' Equity



<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------------
                                                                                       Additional
                                                         Common Stock                    Paid-In             Accumulated
                                                      Shares         Amount              Capital               Deficit

-----------------------------------------------------------------------------------------------------------------------------------

<S>                                                    <C>           <C>               <C>               <C>
Balance, December 31, 2005                             2,551,568     $25,516           $23,416,468       ($ 1,566,511)

    Repurchase of 57,973 shares of
         common stock                                    (57,973)       (580)             (488,824)

    Net income                                                                                              1,154,168

    Dividends declared                                                                                     (1,485,275)
                                                       ---------      ------            ----------          ---------

Balance, December 31, 2006                             2,493,595     $24,936           $22,927,644       ($ 1,897,618)

    Net income                                                                                                853,190

    Dividends declared                                                                                       (654,572)
                                                       ---------      ------           ----------             -------

Balance, December 31, 2007                            2,493,595      $24,936         $22,927,644          ($1,699,000)
                                                      =========       ======          ==========            =========






Notes to Financial Statements are an integral part of this Statement.
</TABLE>





                                      F-6
<PAGE>


                        AMERICAN CHURCH MORTGAGE COMPANY

                            Statements of Cash Flows
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
                                                                                            Years Ended December 31
                                                                                          2007                 2006
------------------------------------------------------------------------------------------------------------------------------------

Cash Flows from Operating Activities
<S>                                                                                   <C>                <C>
    Net income                                                                        $   853,190        $   1,154,168
    Adjustments to reconcile net income to net cash
        from operating activities:
        Impairment loss on real estate                                                    217,362              205,165
        Provision for losses on mortgage loans receivable                                  33,101                8,682
        Provision for losses on bond portfolio                                            100,000                    -
        Amortization of deferred costs                                                    202,067              199,373
        Other                                                                              60,000
        Change in assets and liabilities
            Accounts receivable                                                            24,163              (27,267)
            Interest receivable                                                            13,818              (26,781)
            Prepaid expenses                                                                1,300               (8,372)
            Accounts payable                                                                2,630                6,971
            Accrued expenses                                                               18,022                    -
            Deferred income                                                               (47,338)             117,312
                                                                                     -------------         -----------
            Net cash from operating activities                                          1,478,315            1,629,251

Cash Flows from Investing Activities
    Investment in mortgage loans                                                       (6,807,144)         (19,699,820)
    Collections of mortgage loans                                                       9,891,776            9,944,751
    Investments in bonds                                                               (2,533,620)            (306,850)
    Proceeds from bond portfolio                                                          720,604              658,020
                                                                                        ---------            ---------
            Net cash from (used for) investing activities                               1,271,616           (9,403,899)

Cash Flows from Financing Activities
    Proceeds from sale of property                                                        130,343                    -
    Payments on line of credit, net                                                        61,185            1,166,000
    Proceeds from secured investor certificates                                                 -            3,369,000
    Payments on secured investor certificate maturities                                (1,851,000)          (1,770,000)
    Payments for deferred costs                                                          (110,289)            (177,987)
    Stock redemptions                                                                           -             (489,404)
    Dividends paid                                                                       (927,310)          (1,454,646)
                                                                                        ---------            ---------
            Net cash (used for) from financing activities                              (2,697,071)             642,963
                                                                                        ---------            ---------

Net Increase (Decrease) in Cash and Equivalents                                            52,860           (7,131,685)

Cash and Equivalents - Beginning of Year                                                  232,258            7,363,943
                                                                                        ---------            ---------

Cash and Equivalents - End of Year                                                   $    285,118        $     232,258
                                                                                      ===========         ============

                                  - Continued -
Notes to Financial Statements are an integral part of this Statement.
</TABLE>






                                      F-7
<PAGE>


                        AMERICAN CHURCH MORTGAGE COMPANY

                      Statements of Cash Flows - Continued



<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------------
                                                                                             Years Ended December 31
                                                                                              2007              2006
-----------------------------------------------------------------------------------------------------------------------------------


Supplemental Schedule of Noncash Financing and
    Investing Activities

<S>                                                                                      <C>                <C>
     Dividends payable                                                                   $   124,680        $   397,418
                                                                                          ==========         ==========

     Reclassification of mortgage and accounts receivable to
        real estate held for sale                                                        $   789,076        $   573,108
                                                                                          ==========         ----------

    Mortgage loans closed but not paid                                                  $     50,000       $     27,000
                                                                                         ===========        ===========

    Line of credit borrowings for deferred costs                                         $   166,815       $         -
                                                                                          ==========        ===========

    Line of credit borrowings used for payment of
        secured investor certificates                                                     $1,956,000         $       -
                                                                                           =========          =========


Supplemental Cash Flow Information
    Cash paid during the year for
        Interest                                                                          $1,760,693         $1,724,986
                                                                                           =========          =========


Notes to Financial Statements are an integral part of this Statement.
</TABLE>






                                      F-8

<PAGE>


                        AMERICAN CHURCH MORTGAGE COMPANY

                          Notes to Financial Statements

                           December 31, 2007 and 2006



1.  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Nature of Business

American Church Mortgage Company, a Minnesota  corporation,  was incorporated on
May 27, 1994.  The Company was organized to engage  primarily in the business of
making  mortgage loans to churches and other nonprofit  religious  organizations
throughout the United States, on terms established for individual organizations.

Accounting Estimates

Management   uses  estimates  and   assumptions  in  preparing  these  financial
statements in accordance with generally accepted  accounting  principles.  Those
estimates and assumptions affect the reported amounts of assets and liabilities,
the disclosure of contingent  assets and liabilities,  and the reported revenues
and  expenses.  Actual  results  could  differ  from those  estimates.  The most
sensitive estimates relate to the allowance for mortgage loans, real estate held
for sale and the  valuation  of the bond  portfolio.  It is at least  reasonably
possible that these  estimates could change in the near term and that the effect
of the change, if any, may be material to the financial statements.

Cash and Equivalents

The  Company  considers  all  highly  liquid  debt  instruments  purchased  with
maturities of three months or less to be cash equivalents.

The Company maintains accounts primarily at two financial institutions. At times
throughout  the year,  the Company's  cash and  equivalents  balances may exceed
amounts  insured by the Federal  Deposit  Insurance  Corporation.  Cash in money
market  funds is not  Federally  insured.  At December  31, 2007 and 2006,  such
investments  were  $5,000  and  $15,403,   respectively.  The  Company  has  not
experienced any losses in such accounts.

Bond Portfolio

The Company accounts for the bond portfolio under Financial Accounting Standards
No. 115, "Accounting for Certain Investments in Debt and Equity Securities." The
Company    classifies    its   bond   portfolio   as    "available-for    sale."
Available-for-sale  bonds are  carried at fair value.  Although no ready  public
market for these bonds exists,  management  believes that cost approximates fair
value, since the bonds are callable at any time by the issuer at par.

Allowance for Mortgage Loans Receivable

The Company records loans  receivable at their  estimated net realizable  value.
The Company's  loan policy  provides an allowance  for  estimated  uncollectible
loans based on an evaluation of the current status of the loan  portfolio.  This
policy  reserves for  principal  amounts  outstanding  on a  particular  loan

                                      F-9
<PAGE>

if cumulative  interruptions occur in the normal payment schedule of a loan. The
Company reserves for the outstanding principal amount of a loan in the Company's
portfolio  if the amount is in doubt of  collection.  Additionally,  no interest
income is recognized on impaired loans that are in the foreclosure  process.  At
December 31, 2007, the Company reserved $72,056 for fourteen  mortgage loans, of
which four are three or more  mortgage  payments in arrears.  Three of the loans
are in the  foreclosure  process,  of  which  one has  declared  bankruptcy.  At
December 31, 2006,  the Company  reserved  $97,262 for twelve  mortgage loans of
which one was four  mortgage  payments  in  arrears  and was in the  foreclosure
process.

The total impaired loans, which are loans that are in the foreclosure process or
are no longer  performing,  were  approximately  $1,156,000  and  $1,164,000  at
December 31, 2007 and 2006, respectively.

Real Estate Held for Sale

Foreclosure  was completed on a church  located in Battle Creek,  Michigan.  The
church congregation  disbanded and the church property is currently  unoccupied.
The  Company  owns and has taken  possession  of the  church  and has listed the
property for sale through a local realtor.

Foreclosure was also completed on a church located in Tyler,  Texas.  The church
congregation  is now meeting in a different  location and the church property is
currently  unoccupied.  The Company owns and has taken  possession of the church
and has listed the property for sale through a local realtor.

A deed in lieu of  foreclosure  was received from a church located in Cleveland,
Ohio. The Company took possession of the church and listed the property for sale
through a local  realtor.  The sale of the property was completed on January 18,
2008.  The property  sold for  approximately  $215,000 and the Company  received
approximately  $182,000  from the sale of the property  after  closing costs and
realtor fees. The Company  subsequently  realized a tax  deductible  loss on the
property totaling approximately $221,000.

Foreclosure  was  completed  on a church  located  in Dayton,  Ohio.  The church
congregation  is now meeting in a different  location and the church property is
currently  unoccupied.  The Company took possession of the church and listed the
property for sale through a local realtor.

Foreclosure was also completed on a church located in Dallas, Texas. The Company
took possession of the property.  The Company  received an earnest money deposit
from a buyer who is  currently  in the  process of  obtaining a  certificate  of
occupancy.  When the  certificate  of  occupancy  is  obtained,  the sale of the
property will be completed.

The Company  recorded the real estate held for sale at fair value,  which is net
of the expected expenses related to the sale of the real estate.


                                      F-10

<PAGE>

Carrying Value of Long-lived Assets

The Company  tests  long-lived  assets or asset groups for  recoverability  when
events or changes in circumstances  indicate that the carrying amount may not be
recoverable.  Circumstances  which could trigger a review  include,  but are not
limited to: significant decreases in the market price of the asset;  significant
adverse changes in the business climate or legal factors;  accumulation of costs
significantly in excess of the amount originally expected for the acquisition or
construction of the asset; current period cash flow or operating losses combined
with a history of losses or a forecast of continuing  losses associated with the
use of the asset;  and current  expectation that the asset will more likely than
not be sold or disposed significantly before the end of estimated useful life.

Recoverability  is assessed  based on the carrying  amount of the asset and fair
value which is generally  determined based on the sum of the  undiscounted  cash
flows expected to result from the use and the eventual disposal of the asset, as
well  as  specific  appraisal  in  certain  instances.  An  impairment  loss  is
recognized when the carrying amount is not recoverable and exceeds fair value.

Deferred Loan Costs

Deferred  loan costs are  amortized  over the  respective  terms of the  secured
investor  certificates  and the line of credit  using the  straight-line  method
which approximates the effective interest method.

Revenue Recognition

Interest  income on  mortgage  loans and the bond  portfolio  is  recognized  as
earned.  Deferred income  represents loan origination fees, which are recognized
over the life of the loan as an adjustment to the yield on the loan.

Income Taxes

The  Company  elected  to be taxed as a Real  Estate  Investment  Trust  (REIT).
Accordingly,  the Company is not subject to Federal  income tax to the extent of
distributions  to its  stockholders  if the Company  meets all the  requirements
under the REIT provisions of the Internal Revenue Code.

Income Per Common Share

No adjustments  were made to income for the purpose of calculating  earnings per
share, as there were no potential dilutive shares outstanding.

Recently Issued Accounting Pronouncements

In September  2006,  the  Financial  Accounting  Standards  Board (FASB)  issued
Statement  of  Financial  Accounting  Standards  No. 157 (SFAS 157),  Fair Value
Measurements. SFAS 157 defines fair value, establishes a framework for measuring
fair value, and expands disclosures about fair value measurements. The statement
is effective for (1) financial assets and liabilities in financial statements

                                      F-11
<PAGE>

issued for fiscal years  beginning  after November 15, 2007, and interim periods
within those fiscal years and (2) certain  non-financial  assets and liabilities
in financial  statements  issued for fiscal years  beginning  after November 15,
2008, and interim  periods within those fiscal years.  The Company is evaluating
the effect,  if any,  that the  adoption of SFAS 157 will have on its results of
operations, financial position, and the related disclosures.

In February 2007, the FASB issued  Statement of Financial  Accounting  Standards
No. 159,  (SFAS 159),  The Fair Value Option for Financial  Assets and Financial
Liabilities - Including an amendment of FASB Statement No. 115  (Accounting  for
Certain Investments in Debt and Equity Securities).  SFAS 159 provides companies
with an option to report selected financial assets and liabilities at fair value
and is effective for fiscal years  beginning  after November 15, 2007 with early
adoption  permitted.  The Company is  evaluating  the effect,  if any,  that the
adoption of SFAS 159 will have on its results of operations, financial position,
and the related disclosures.

Repurchase of Common Stock

Although  our common  shares are not  redeemable  by us, we may, at our complete
discretion,   repurchase  shares  offered  to  us  from  time  to  time  by  our
shareholders.  In such event,  we may pay whatever  price Church Loan  Advisors,
Inc., the "Advisor" to the Company,  deems  appropriate and reasonable,  and any
such shares  repurchased  will be re-designated as "unissued," will no longer be
entitled to  distribution  of  dividends  and will cease to have voting  rights.
Shares  that may be  purchased  are not  part of a  publicly  announced  plan to
repurchase  shares nor does the Company plan or anticipate any stock  repurchase
plans.

2.  MORTGAGE LOANS AND BOND PORTFOLIO

At December 31, 2007, the Company had first mortgage loans  receivable  totaling
$34,040,983.  The loans bear  interest  ranging from 7.50% to 12.00% at December
31, 2007. At December 31, 2006, the Company had first mortgage loans  receivable
totaling $37,949,998 that bore interest ranging from 7.75% to 12.00%.

The Company  also had a portfolio  of secured  church bonds at December 31, 2007
and 2006,  which are  carried  at cost plus  amortized  interest  income,  which
approximates  fair value since the bonds are  callable at any time by the issuer
at par.  The bonds pay either  semi-annual  or quarterly  interest  ranging from
4.50% to 12.00%.  The combined  principal of $11,392,790 at December 31, 2007 is
due at various  maturity  dates between  February 1, 2008 and November 15, 2037.
Eight bond issues  comprised 85% of the Company's bond portfolio at December 31,
2007. Six bond issues  comprised 85% of the Company's bond portfolio at December
31, 2006. The Company recorded an allowance of $100,000 at December 31, 2007 for
one bond series that is in default. This bond series is approximately 18% of the
bond  portfolio  at December 31, 2007.  The Company had  maturities  of bonds of
approximately $730,000 and $658,000 in 2007 and 2006, respectively.  The Company
purchased  approximately  $2,534,000  and  $307,000  of bonds in 2007 and  2006,
respectively.

                                      F-12

<PAGE>

The contractual  maturity  schedule for mortgage loans and the bond portfolio as
of December 31, 2007, is as follows:

<TABLE>
<CAPTION>
                                                                     Mortgage Loans       Bond Portfolio

<S>        <C>                                                      <C>                    <C>
           2008                                                     $     979,868          $       41,000
           2009                                                           788,205                  52,000
           2010                                                         1,292,126                 164,000
           2011                                                           922,221                 516,000
           2012                                                           998,478                 346,000
           Thereafter                                                  29,060,085              10,273,790
                                                                       ----------              ----------
                                                                       34,040,983              11,392,790
           Less loan loss and bond reserves                               (72,056)               (100,000)
           Less discount from par                                                                 (29,077)
                                                                     ------------             -----------

                       Totals                                         $33,968,927             $11,263,713
                                                                       ==========              ==========
</TABLE>

The Company  currently owns $2,035,000  First Mortgage Bonds issued by St. Agnes
Missionary  Baptist Church.  St. Agnes  defaulted on its payment  obligations to
bondholders.   The  church  subsequently   commenced  a  Chapter  11  bankruptcy
reorganization  proceeding  regarding  three  properties in November  2007.  The
Company,  along with all other  bondholders,  has a superior lien over all other
creditors.  No accrual for interest receivable from the bonds is recorded by the
Company.

The church listed all three of its properties for sale for an aggregate price of
$19,166,668.  The  bondholders  are  currently  owed  $13,027,000  excluding any
accrued interest, fees or expenses. Herring Bank, Amarillo, Texas is trustee for
the  first  mortgage  bondholders.  Herring  Bank  and  its  legal  counsel  are
monitoring  the  bankruptcy  process  and will  advise  the  bondholders  of the
church's  re-organization  plans  when  made  available.  The  Company  reserved
$100,000  for the  bonds at  December  31,  2007.  When  additional  information
regarding  the  Church's  reorganization  plan is  provided,  the  Company  will
determine  whether an additional  valuation  adjustment for the bond  investment
should be recorded.

3.  SECURED INVESTOR CERTIFICATES

Secured  investor  certificates  (see  Note  6) are  collateralized  by  certain
mortgage  loans  receivable or secured  church bonds of  approximately  the same
value as the certificates.  Additionally, the Company incurred deferred offering
costs  related to the debt  offerings.  The  maturity  schedule  for the secured
investor certificates at December 31, 2007 is as follows:

<TABLE>
<CAPTION>
                                                                  Secured Investor
                                                                    Certificates
                                                                 --------------------
                                                                 --------------------

<S>        <C>                                                      <C>
           2008                                                     $    2,197,000
           2009                                                          4,024,000
           2010                                                          1,145,000

                                      F-14

<PAGE>

           2011                                                            680,000
           2012                                                          1,167,000
           Thereafter                                                   13,618,000
                                                                       -----------

                      Totals                                           $22,831,000
                                                                        ==========
</TABLE>

Interest expense related to these  Certificates for the years ended December 31,
2007 and 2006,  respectively,  is approximately  $1,657,000 and $1,724,000.  The
weighted  average interest rate on the certificates was 7.34% and 7.33% for 2007
and 2006, respectfully.

4.  TRANSACTIONS WITH AFFILIATES

The  Company  has  an  Advisory  Agreement  with  Church  Loan  Advisors,  Inc.,
Minnetonka, Minnesota ("Advisor"). The Advisor is responsible for the day-to-day
operations of the Company and provides office space, administrative services and
personnel.

Under the terms of the  Advisory  Agreement,  the  Company  pays the  Advisor an
annual  base  management  fee of 1.25% of  average  invested  assets  (generally
defined as the  average of the  aggregate  book value of the assets  invested in
first mortgage bonds and loans secured by real estate) up to $35 million,  1.00%
of assets from $35 million to $50 million,  and 0.75% on assets in excess of $50
million, which is payable on a monthly basis. The Advisor also receives one-half
of the  origination  fees paid by a mortgage loan borrower in connection  with a
mortgage  loan  made  or  renewed  by the  Company.  The  Company  paid  Advisor
management and origination  fees of  approximately  $487,000 and $573,000 during
2007 and 2006, respectively.  At December 31, 2006, the Company had a payable of
approximately $5,000 due to the Advisor.

The Advisor and the Company are  related  through  common  ownership  and common
management. See Notes 1 and 6 for additional transactions.

5.  INCOME TAXES

As discussed in Note 1, a REIT is subject to taxation to the extent that taxable
income exceeds  dividend  distributions  to  shareholders.  In order to maintain
status as a REIT,  the  Company is required  to  distribute  at least 90% of its
taxable  income.  In 2007,  the  Company  had  pretax  income  of  $853,190  and
distributions  to shareholders  in the form of dividends  during the tax year of
$654,572. The expected tax expense to the Company, pre-dividends would have been
$290,085. In 2006, the Company had pretax income $1,154,168 and distributions to
shareholders  in the form of dividends  during the tax year of  $1,485,275.  The
expected tax expense to the Company, pre-dividends,  would have been $392,417 in
2006. The Company paid out 100% of taxable income in dividends in 2007 and 2006.

                                      F-15

<PAGE>

The following  reconciles the income tax provision  with the expected  provision
obtained by applying statutory rates to pretax income:
<TABLE>
<CAPTION>

                                                                                    2007              2006

<S>                                                                                <C>               <C>
         Expected tax expense                                                      $290,085          $392,417
         Realized Tax Loss                                                         (284,427)                -
         Benefit of REIT distributions                                             (129,118)         (504,994)
         Valuation allowance                                                         63,460           112,577
                                                                                    -------           -------

                     Total provision                                              $( 60,000)         $     -
                                                                                    =======           =======

The components of deferred income taxes are as follows:
                                                                                    2007                2006

         Loan origination fees                                                     $213,036          $229,131
         Loan loss allowance                                                         58,499            33,069
         Real-estate impairment                                                     215,997           406,697
         Valuation allowance                                                       (487,532)         (608,897)
                                                                                   --------          ---------

                  Total deferred income tax                                      $     -            $  60,000
                                                                                  =========          ========

The total deferred tax assets are as follows:
                                                                                   2007                2006

         Deferred tax assets                                                       $487,532          $668,897
         Deferred tax asset valuation allowance                                    (487,532)         (608,897)
                                                                                   ---------         ---------

                     Net deferred tax asset                                      $     -            $  60,000
                                                                                  =========          ========
</TABLE>


The change in the valuation allowance was approximately $63,000 and $113,000 for
2007 and 2006, respectively.

6.  PUBLIC OFFERINGS OF THE COMPANY

In July 2004, the Company filed a Registration Statement with the Securities and
Exchange  Commission for a second public offering of debt securities,  which the
Securities  and Exchange  Commission  declared  effective  October 7, 2004.  The
Company  concluded  the  offering  on  October  7,  2006.  The  Company  offered
$23,000,000  principal  amount of its  Series B secured  investor  certificates.
Certificates  could be purchased in any multiple of $1,000.  We sold $14,860,000
of secured investor certificates during the offering.

                                      F-15

<PAGE>

Pursuant  to the  terms of the  Underwriting  Agreement,  the  Company  incurred
commissions and non-reimbursable expenses and paid approximately $173,000 during
2006 in connection with these public  offerings to the managing  underwriter and
participating broker-dealers .

7.  FAIR VALUE OF FINANCIAL INSTRUMENTS

The estimated fair value of the Company's financial  instruments,  none of which
are held for trading purposes, are as follows at December 31, 2007 and 2006:
<TABLE>
<CAPTION>

                                                                 2007                             2006
                                                ---------------------------------      -------------------------------
                                                      Carrying            Fair            Carrying            Fair
                                                       Amount             Value            Amount             Value
                                                     ----------        ----------        ----------         ----------

<S>                                              <C>                <C>                  <C>                <C>
      Cash and equivalents                       $     285,118      $     285,118        $  232,258         $  232,258
      Accounts receivable                              112,546            112,546           136,709            136,709
      Interest receivable                              151,105            151,105           164,923            164,923
      Mortgage loans receivable                     33,968,927         33,968,927        37,852,736         37,852,736
      Bond portfolio                                11,263,713         11,263,713         9,550,697          9,550,697
      Secured investor certificates                 22,831,000         22,831,000        26,638,000         26,638,000
</TABLE>

The carrying value of cash and equivalents approximates fair value. The carrying
value of the mortgage loans  receivable  approximates  fair value because of the
substantial  turnover and activity in this portfolio.  The carrying value of the
bond portfolio  approximates  amortized cost since our bonds are callable at any
time  by  the  issuer  at  par.  The  carrying  value  of the  secured  investor
certificates  approximates  fair value  because the interest  rates at which the
certificates have been sold have not changed significantly in the past year.

8.  LINE OF CREDIT

The Company obtained a $1,000,000 line of credit with its bank on July 22, 1999,
which was  increased to $2,000,000 on March 18, 2002 and increased to $3,000,000
on February 13, 2007,  subject to certain  borrowing base  limitations,  through
August 1, 2007. Interest was charged at 0.50% over the prime rate, which totaled
8.75% at December 31,  2007.  The line of credit was fully paid on July 26, 2007
by the KeyBank  facility  discussed  below,  leaving no balance  outstanding  at
December 31, 2007.  There was  interest  expense in the amount of  approximately
$41,000 related to the line of credit for December 31, 2007.

On July 26, 2007, the Company  entered into a three-year,  adjustable  rate, $15
million revolving credit facility with KeyBank National Association. There was a
balance of  $3,350,000  outstanding  at December  31,  2007.  There was interest
expense in the amount of  approximately  $86,000  related  to the  facility  for
December  31,  2007.  Interest  is charged at the LIBOR rate plus an  applicable
margin,  which was 1.50% at December 31, 2007. The total interest rate was 6.56%
at December 31, 2007. The applicable  margin is indexed based upon the Company's
financial performance as described below.

                                      F-16

<PAGE>

The Credit Agreement contains customary affirmative and negative covenants.  The
financial covenants include borrowing base restrictions,  a maximum indebtedness
to assets ratio,  a minimum cash flow  coverage  ratio,  a minimum  tangible net
worth  ratio,  and a  maximum  non-performing  assets  ratio.  The  creation  of
indebtedness  outside the credit facility,  creation of liens, making of certain
investments,  sale of assets,  and  incurrence of debt are all either limited or
require prior  approval from KeyBank or the lenders under the Credit  Agreement.
The  Credit  Agreement  also  contains  customary  events  of  default  such  as
nonpayment,  bankruptcy,  and  change  in  control,  which  if  they  occur  may
constitute an event of default. Additionally, under certain circumstances, total
availability  under the credit  facility can be  increased  to $25 million.  The
revolving  credit facility is secured by a first priority  security  interest in
substantially  all of the  Company's  assets  other than  collateral  pledged to
secure the Company's Series "A" and Series "B" secured investor certificates

The  Company's  applicable  margin rate is currently  1.50% over LIBOR for LIBOR
rate loans and 0.25% over prime rate for base rate loans. Based on the Company's
borrowing base adjusted  leverage ratio this applicable  margin can be adjusted,
on any date of  determination,  either upward or downward based on the following
schedule:
<TABLE>
<CAPTION>
<S><C>                                    <C>                                  <C>
   -------------------------------------- ------------------------------------ --------------------------------------
           Total Leverage Ratio:            Per Annum Percentage for LIBOR      Per Annum Percentage for Base Rate
                                                         Loans                                 Loans
   -------------------------------------- ------------------------------------ --------------------------------------
   -------------------------------------- ------------------------------------ --------------------------------------
   Greater than or equal to 60%                         1.875%                                 0.50%
   -------------------------------------- ------------------------------------ --------------------------------------
   -------------------------------------- ------------------------------------ --------------------------------------
   Less  than  60% but  greater  than or                 1.50%                                 0.25%
   equal to 55%
   -------------------------------------- ------------------------------------ --------------------------------------
   -------------------------------------- ------------------------------------ --------------------------------------
   Less than 55%                                         1.35%                                 0.00%
   -------------------------------------- ------------------------------------ --------------------------------------
</TABLE>

The total leverage ratio is determined by dividing total liabilities by total
adjusted tangible asset value.

9.  AMENDMENT TO FINANCIAL STATEMENT

The Company has changed the  presentation of interest  expense and the provision
for losses on mortgage loans receivable and bonds on the Statement of Operations
to include these accounts as components of net interest income.




                                      F-17

<PAGE>

                                   SIGNATURES


     Pursuant to the  requirements  of the Securities  Exchange Act of 1934, the
registrant  has duly  caused  the  report  to be  signed  on its  behalf  by the
undersigned, thereunto duly authorized.

         Dated:    March 5, 2009

                                    AMERICAN CHURCH MORTGAGE COMPANY

                            By: /s/ Philip J. Myers
                                ---------------------
                                    Philip J. Myers
                             Chief Executive Officer and Chief Financial Officer
                            (Principal Executive Officer and Principal Financial
                             and Accounting Officer)



















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