A family funded reverse mortgage can be a win-win solution.
Caregiver Mortgage ® (Reverse Mortgage) - $1,825
Our Caregiver Mortgage ® is a secured line of credit funded by your own family members. It allows you to receive tax-free cash borrowed against your home equity, knowing that your own family – not an institution – is building equity in your home. It offers may of the features and benefits that attract people to reverse mortgages, but without the costs and restrictions.
- Secured Line of Credit Promissory Note
- Registered Mortgage, Deed of Trust, or Security Deed
- Joint Lender Agreement, Basic Property Report (Lien Search), Electronic Property Valuation
- Loan Tracking and Annual Tax Reports
- Supports up to three households (typically, adult siblings) who wish to crowd fund the credit line
Setup Details: Four Easy Steps
Structure the Loan
Either the Lender(s) or Borrower may submit your loan details through our secure online Application, with the following exceptions:
(1) If the Borrower’s subject property is in Kentucky, Maryland, Texas, or Virginia, then the Borrower must submit the online Setup Form and submit our one-time setup fee.
In the event multiple households are funding the loan, one Lender must take responsibility for submitting the Loan Setup Form and for paying our one-time setup fee. However, as explained directly above, if the Borrower’s subject property is in Kentucky, Maryland, Texas, or Virginia, then the Borrower must submit our online Setup Form and submit our one-time setup fee.
Please be prepared to provide:
- (A) Lender(s) and Borrower contact information:
Names, addresses, email addresses, phone numbers
- (B) Subject property details:
Property address, name of condo association if applicable
- (C) Family Mortgage loan details:
Loan amount(s), initial loan disbursement date, projected monthly disbursement, interest rate, term,
lien position (1st or 2nd mortgage)
- (D) Secure credit card payment information
Please be sure to review our company Standards for complete restrictions and limitations.
Document the Loan
Within one business day of submitting your online Setup Form, a Family Mortgage Team Member will call you to confirm the details of your loan.
All Caregiver Mortgages ® have three crucial components:
Promissory Note: The Promissory Note establishes the legal debt between the parties and records how the debt is going to be repaid.
Joint Lender Agreement In the event your loan includes multiple Lenders (households), this agreement will document the individual rights and credit-line of each Lender. The individual household credit-lines collectively comprise the total loan amount.
Mortgage / Deed of Trust / Security Deed: This is the legal security instrument through which you offer the Lender(s) your property as collateral in exchange for the loan.
Within seven business days of submitting your online Setup Form, we will email your comprehensive loan documents for your review approval. The documents will also include an open lien search and an electronic valuation of your property.
Register the Loan
After you have reviewed and approved your loan documents, the documents are emailed to your closing attorney. The closing attorney will oversee the execution and government recording of your Family Mortgage.
State laws in over half of the country legally require local attorney participation when closing a loan secured by real estate. As an ever increasing number of states move towards this legal standard, we follow this protocol with every National Family Mortgage ® transaction.
Additionally, your local attorney’s involvement will help minimize liabilities for all parties, and further ensure a successful arrangement for everyone.
Attorney’s fees vary widely depending on experience, expertise, and scope of services.
Please note, in addition to National Family Mortgage’s ® one-time fee for service, the following states requires a mortgage tax must be paid at the time of local government recording:
Alabama, Florida, Georgia, Maryland, Minnesota, New York, Tennessee, Virginia.
Please be sure to review our Family Mortgage Guide for estimated state tax rates.
It is the client’s responsibility to pay this additional tax. The tax will be collected by your closing attorney.
Your Lender(s) will make any initial loan disbursement directly to your closing attorney’s client escrow account. Future disbursements will be made either directly to you, or to any appropriate third party on your behalf.
National Family Mortgage ® does not disburse funds.
Manage the Loan
Our award winning, patented, Caregiver Mortgage ® Manager ensures expectations are clear, relationships are protected, and year-end tax reporting is simple.
- Individual and group reports
- Annotate disbursements
- Upload and attach images and receipts
- Individual annual tax reports
- Federal Patent No. US D788,142 S