A Structured Framework for
Intra-Family Mortgage Planning

Intra-family mortgage transactions follow a predictable structure, even though the family dynamics, tax considerations, and real-estate details vary from case to case.

National Family Mortgage ® supports advisors and their clients by providing standardized tax compliant documentation and administrative infrastructure so families can implement private mortgage arrangements in a consistent, defensible manner.

This page outlines the typical transaction flow at a high level. Detailed requirements, limitations, and costs are addressed in the applicable National Family Mortgage ® Guides:

Buying a home with family financing
A family member provides mortgage financing so a Buyer can purchase a home, with clear terms and a properly recorded lien.

Buying a relative’s home (Seller Financing)
The Seller transfers ownership now and receives payments over time, secured by the property.

Refinancing out of a commercial mortgage
Replace a bank or private loan with a properly documented intra-family mortgage.

Borrowing against home equity
A lump-sum family loan secured by existing home equity, often structured behind an existing first mortgage.

While each engagement is fact-specific and subject to state law, most intra-family mortgage transactions proceed through the following stages:

1. Family Intent and Advisor Involvement
   A family determines that private financing may be preferable to institutional lending, often as part of a broader planning discussion with their advisor.

2. Guide Review and Deal Confirmation
   The family reviews the applicable National Family Mortgage ® Guide in full to understand structure, costs, limitations, and common dealbreakers.

3. Loan Structure and Documentation Preparation
   Loan terms are finalized and formal documentation is prepared, typically including a promissory note and a mortgage or deed of trust.

4. Settlement Agent Confirmation
   A local settlement agent or title company coordinates execution, funds flow, and recording of the lien as part of the real-estate transaction.

5. Loan Execution and Recording
   Documents are signed, funds are disbursed through the settlement agent, and the mortgage is recorded in the public land records.

6. Ongoing Administration (if elected)
   Families may elect professional loan servicing to support payment processing, recordkeeping, and annual tax reporting.

Advisor involvement varies by practice style and client preference.

Some advisors remain closely involved throughout the transaction. Others introduce National Family Mortgage®, allow the family to review the Guide independently, and reengage once the structure is in place. Both approaches are common.

National Family Mortgage ® is designed to integrate flexibly into existing advisory relationships rather than replace them.

Each transaction type—purchase, seller financing, refinance, or home-equity lending—has its own National Family Mortgage ® Guide.

The Guides provide:

• detailed explanations of structure and process

• pricing and servicing options

• limitations and common dealbreakers

• implementation considerations advisors should be aware of

Clients are required to review the applicable Guide before moving forward.

If, after reviewing the appropriate Guide, questions remain about process, coordination, or implementation, advisors and their clients are welcome to Contact Us for clarification.