Please select one of the following six paths.

A family member may help me:

Purchase a Home

Real estate loans and financial gifts with relatives can be a win-win for both sides, but should be documented properly. National Family Mortgage ® helps minimize the legal, tax, and personal consequences that can occur when family real estate loans and financial gifts are documented improperly — or not documented at all.

National Family Mortgage ® helps families setup their own mortgage with their own relatives. We help Lenders make loans they feel good about, that prevent tax problems, that protect relationships, and get repaid. We help Borrowers fund their home ownership dreams and stay on track with their mortgage payments.

Lenders generate a solid investment return at stronger rates than they would earn in a bond, money market, or a savings account, knowing their money is secured by a registered mortgage lien. Borrowers get a lower interest rate and lower fees than they would with an institutional mortgage loan.

Some families use National Family Mortgage ® to simply prevent IRS scrutiny of federal gift tax returns. Other families use National Family Mortgage ® to protect family wealth in the event of a Borrower’s death or divorce.

A National Family Mortgage ® can provide the legal structure and tax benefits of a bank mortgage with an unmatched flexibility that fosters a win-win transaction for the entire family!

If you’re interested in buying a relative’s home, please follow the “Purchase Their Home” path below.

Refinance a Mortgage

Why pay interest to a bank if there’s an opportunity to help your family earn a stronger return? Leave the banks behind and refinance with family!

When a home loan from a relative is properly formalized and registered with the proper government authority, you can deduct the mortgage interest paid, just as with a traditional bank mortgage.

If refinancing a loan that was obtained before December 14, 2017, Borrowers are still able to claim the popular home loan interest deduction at the old IRS cap, limited to no more than $500K of acquisition debt for married individual filers, and $1M of debt for married couples filing jointly, secured by their primary or secondary residence.

We call it the Win-Win Mortgage ®.

If you’re interested in refinancing out of an institutional mortgage due to a divorce, and your ex-spouse will be coming off of the deed / title to your home, please follow the “Purchase a Home” path above.

Renovate a Home

Borrowers can deduct their home mortgage interest on acquisition debt, including the interest on loans used to pay the actual costs of substantial home improvements, only if their loan is secured by their home.

Under the IRS tax code, a substantial home improvement must add value to the Borrower’s home, prolong its useful life or adapt it to new uses. For example, adding square footage or adding a bathroom to the home is generally considered a substantial home improvement.

The interest deduction is limited to no more than $375K of debt for married individual filers, and $750K of debt for married couples filing jointly, secured by a primary or secondary residence.

Reverse Mortgage

Our Caregiver Mortgage ® is a family-funded, reverse mortgage like, line of credit that offers homeowners many of the features and benefits of institutional reverse mortgage products, but without the high costs and restrictions.

Borrowers generate a tax-free cash revenue stream funded by their own family, live more comfortably, and enjoy their retirement, knowing that their own family — and not an institution — is building equity in their home. Lenders empower their loved one with a smart solution that provides predictable financial support, complete flexibility, and will be repaid.

Our award winning, patented Caregiver Mortgage ® manager is designed to facilitate participation, open communication, and maintain harmony, between siblings and extended family members.

Purchase Their Home

Seller Financing works best for Sellers who own their property outright, or can pay off their existing mortgage balance either with a down payment from the Buyer, or some other source.

Seller Financing opens up a range of creative financing possibilities that can benefit both the Seller and the Buyer. Relatives can use Seller Financing to pass ownership in a property from one family member to another — often with low interest rates and payment schedules favorable to the Buyer. At the same time, proper Seller Financing can help the Seller spread out Capital Gains Tax and prevent IRS Gift Tax.

Borrow Home Equity

An intra-family home equity loan can be a great solution to consolidate and refinance high-interest credit card debt or student loan debt. For the self-employed, an intra-family home equity loan can be a great alternative to an institutional business loan.

Home equity loans are generally used for non-real estate purposes, like those mentioned directly above.

Please note, in 2018 the IRS eliminated the popular home equity loan interest deduction.

If home equity is being borrowed to finance home improvements, please follow the “Renovate a Home” path above.