A mortgage loan from a family member can be a win-win deal.

Proper documentation prevents tax problems and protects relationships.

How It Works in Four Easy Steps


Complete our simple online application


Documents emailed for review & signature in 7 business days


Lender disburses funds & documents registered with government authority


Optional loan management & annual IRS tax data

The Details:

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 and federal tax consequences that can occur when family real estate loans and financial gifts are documented improperly – or not documented at all.

You can use a National Family Mortgage ® in many of the same situations you might use a traditional bank mortgage for, including:

  • To refinance an outstanding home loan

We want to help Lenders make loans that they feel good about, that prevents tax problems, and protects family relationships. We want to help Borrowers fund their dreams and stay on track with payments. Our goal is to make family mortgage lending and borrowing safe, easy, secure, and successful.

We facilitate Home Refinance loans in the following states:
AR, AZ, CA, CO, CT, FL, ID, IL*, IN, MI, MO, MS, NE, NH, NJ, NM, NV, OR, PA, UT, WA, WI.
(This means the Borrower’s subject property is located in one of these states listed directly above.)

* If the Borrower’s subject property is located in Cook County, Kane County, Peoria County, or Will County, unfortunately, we cannot help you.

Please be sure to review our company Standards for complete restrictions and limitations.

Structure the Loan

How much are you going to borrow? How much can you afford to pay each month? Our free Family Mortgage Guide has lots of tips and advice on how to work with your Lender to structure your loan to be a complete success. We also have some great calculators on the Products / Pricing page to help you get started.


Document the Loan

Once you and your Lender have agreed upon loan terms, it’s time to make the agreement legally binding. Either you or your Lender may submit your loan details through our secure online Application, with the following exceptions:

(1) If the subject property is in Pennsylvania, then the Borrower must submit our online Application and submit our one-time setup fee.

(2) If the Lender lives in North Carolina, then the Borrower must submit our online Application and submit our one-time setup fee..

All National Family Mortgages ® have two crucial components:

Promissory Note: The Promissory Note establishes the legal debt between the parties and records how the debt is going to be repaid.

Mortgage / Deed of Trust / Security Deed: This is the legal security instrument through which you will offer your property as collateral to your Lender in exchange for the loan. Attached to the Mortgage / Deed of Trust / Security Deed is a legal description of the property that we will obtain from the County authority where the subject property is located.

Within one business day of submitting your online Application, a Family Mortgage Advisor will call you to confirm the details of your loan. Within seven business days of submitting your online Application, we will email you your customized, state specific mortgage documents for approval and notarized signature. We will also include setup forms for our optional Family Mortgage loan servicing program.

When you’re ready, on the agreed upon loan issue date, your Lender may disburse the refinance funds directly to your current lien holder (i.e., bank.), per their instructions.

Register the Loan

Return the original, notarized documents to National Family Mortgage ® for legal public recording at the appropriate government authority. You can rest assured that your Lender’s investment is protected with a registered mortgage lien. Now, you will also be able to continue to legally deduct your mortgage interest payments from your federal tax return – just like with a bank mortgage. (You cannot legally deduct the interest payments on non-registered loans – even if the money is used to refinance a bank mortgage.)

Manage the Loan

With our optional Family Mortgage loan servicing program powered by FCI Lender Services, Inc., expectations are clear, relationships are protected, and year-end tax reporting is simple.

  • Monthly payment reminders and statement
  • Electronic payment processing and online account access
  • IRS 1098 and INT-1099 tax reporting
  • Toll-free customer support