National Family Mortgage ®
In The News

Well into Adulthood and Still Getting Money From Their Parents – Nearly 60% of Parents Provide Financial Help to Their Adult Kids – January 25, 2024
“Timothy Burke, chief executive at National Family Mortgage, which facilitates intra-family mortgage loans, said parents are often frustrated on behalf of their house-hunting children. High interest rate and the cutthroat housing market are holding their children back from reaching a milestone the parents themselves were more easily able to access.”

How to Help Your Children Buy a Home – April, 2023
“An intra-family loan works especially well for well-off individuals who can afford to give their children the money but prefer the financial discipline that comes with a loan, says Tim Burke, chief executive officer of National Family Mortgage, a family lending agency. “For many parents, the motivation to lend money over gifting it is just about personal accountability,” he says.”

Two Smart Ways to Help Your Kids Buy a House – October 4, 2022
“National Family Mortgage (www.nationalfamilymortgage.com) also can set up and document the loan, and coordinate with the settlement agent. The cost rises with the loan’s size. For a loan of $100,000 or less, the cost is $725.”

The One Place You Can Still Get a 3% Home Loan: Your Family – July 22, 2022
“We’re busier than ever,” says Mr. Burke. He says his firm has closed more than $1 billion in intrafamily loans since 2010, with default rates under 1%. In most cases, there’s no bank financing, just parent financing. In some cases, the the adult children get a commercial loan for part of the purchase price, plus a secondary family loan to make up the difference.”

Want to Earn More on Your Cash? Try Lending to a Family Member – May 10, 2021
“You can use services such as TimeValue or National Family Mortgage to help facilitate interest payments and generate statements of interest for tax and recordkeeping purposes. And remember to include the cost of this software when determining what interest rate to charge to ensure you’re earning a higher return than you’d get in a money market account.”

Thinking About Lending Money to Family? The IRS Has Something to Say About That – May 8, 2020
“Streamline paperwork. The administration of family loans can be outsourced, either to a local financial adviser or to a national firm such as NationalFamilyMortgage.com.”

Smart Ways to Give (or Lend) Money to Family – June, 2019
“Besides creating the promissory note, many parents also opt to file a mortgage or deed of trust with their local government—such as the registrar of deeds or county clerk’s office—creating a lien on the property, says Timothy Burke, founder and CEO of National Family Mortgage.”

Best Ways to Offer Down-Payment Assistance – May, 2019
“Be sure to craft the deal carefully to avoid IRS scrutiny—and family acrimony. For any loan higher than $15,000 not to be construed as a gift, the interest rate must be at least as high as the IRS monthly Applicable Federal Rate (AFR), currently about 3 percent for long-term loans. You can find the AFR easily at National Family Mortgage, a service that helps create intrafamily loans.”

3 Ways Parents Can Help Grown Kids Own a Home – April 13, 2018
“Jay and Judy fully funded the younger couple’s first home, a Columbia, Maryland, townhouse. They decided to use a service that facilitates family loans. They worked with National Family Mortgage, which charges one-time setup fees of $725 to $2,100, depending on the loan size; provides all necessary forms and documents to meet state, local and IRS requirements; guides families through the settlement and filing process; and connects borrowers with loan servicers.”

Loaning Money to Family and Friends – October, 2017
“Mortgages merit a special mention. They represent the most common intra-family loans, as adult children, excited to buy their first home, might not have enough credit history to satisfy a traditional lender. In turn, a loan can prove profitable for parents because the interest earned is likely to be more than with conventional financial instruments like bonds and CDs, making it a win-win. Using a service like National Family Mortgage, which helps structure the loan and handle all the paperwork and reporting, keeps the process simple and professional.”

P2P Mortgage Loans – A Growing Trend – February 3, 2017
“San Francisco-based peer-to-peer lender SoFi offers both mortgage and mortgage refinance loans in 23 states and the District of Columbia, with more on the way. Another firm, National Family Mortgage, facilitates peer-to-peer home mortgage and re-fi loans among relatives.”

Yes, You Should Charge Family Members Interest When You Loan Them Money – November 4, 2016
“It’s also crucial to carefully document the loan, just in case the family member does not repay it and the you want to deduct the lost amount from your personal income taxes, according to National Family Mortgage. ”

A Mortgage That Pays Your Family Instead of a Bank – May 26, 2016
“Imagine making your mortgage and mortgage interest payments to a family member instead of a bank? If that sounds appealing, you might want to check out intra-family mortgages. ‘Eighty-five percent of our clients are parents trying to help their adult children,’ says Timothy Burke, founder and CEO of National Family Mortgage, the leader in the space.”

Dear Mom and Dad: Can You Give Me a Mortgage? – May 24, 2016
“This family arrangement is hardly unusual. In an era when home financing is scarce, asking Mom and Dad for a home loan is a growing trend. While nobody keeps numbers on how many parents actually hold mortgages on their kids’ homes, Tim Burke, founder of National Family Mortgage, which structures and manages family home loans, estimates that the number could be as large as 10% of all first-time buyers.”

All in the Family Reverse Mortgages – May, 2016
“National Family Mortgage, a Belmont, Mass.-based peer-to-peer lending company, last year launched an intra-family reverse mortgage. The company doesn’t disburse funds, but it helps families draft paperwork and track disbursements online. You don’t have to pay mortgage insurance premiums, and your interest rate will likely be lower than the rate a mortgage lender would charge.”

How to Fund a Down Payment – March, 2016
“You’ll need to ensure that any loan higher than $14,000 is not construed as a gift, subject to the hefty federal gift tax of up to 40 percent. So set the interest rate at least as high as the IRS monthly Applicable Federal Rate (AFR), currently about 2.5 percent for long-term loans. You can find the AFR easily at National Family Mortgage, a service that helps create intrafamily loans.”

Retiree Role Reversal: How To Pull ‘The Old Switcheroo’ And Ask Your Kids For A Reverse Mortgage – December 2, 2015
“There is a company in Massachusetts, the National Family Mortgage, LLC that can actually help you with this private Caregiver Mortgage loan. They don’t lend the money; they facilitate all of the paperwork and help you with the loan your children are making to you.”

Intrafamily Mortgages – Paying Your Family Instead of a Bank – December 2, 2015
“National Family Mortgage has done more than $330 million in loan volume. The largest individual loan has been for $2 million, and the smallest to date is $11,000. Burke says in addition to mortgages for home purchases, the company structures loans for down payments on homes, renovations, and refinancing existing mortgage balances.”

My 7 Smartest Financial Moves – November 30, 2015
“This year, I lent my daughter $381,000 so she could buy her first home. It was a good deal for her: She was able to behave like a cash buyer when bidding on properties, she didn’t have the hassle of dealing with a bank and her closing costs were far lower. It was also a good deal for me. We settled on the current average rate for a 30-year fixed-rate mortgage, which was 3.97%. That’s more than I could earn by buying high-quality bonds. To keep everything on the level, we used National Family Mortgage in Belmont, Mass., to handle the paperwork . . .”

Reverse Mortgages, Family Style – November 30, 2015
“National Family Mortgage charges a $2,500 fee to put together and see to the recording of the promissory note, the joint lender agreement and the mortgage. It does not require an appraisal or inspection. The company’s loan-tracking platform calculates the lenders’ interest earnings at year end for reporting to the Internal Revenue Service.”

Reverse Mortgage Option Helps Homeowners Keep it in the Family – May 4, 2015
“According to National Family Mortgage, the Caregiver Mortgage allows homeowners to receive tax-free cash borrowed against the equity in their home, knowing that their own family, instead of a bank, is building equity. The product helps adult children purchase, refinance or renovate a home; helps a retired parent with cash-flow needs while protecting their own financial future; and transfers wealth between generations.”

When the Kids Provide a Reverse Mortgage to Mom and Dad – April 29, 2015
“National Family does not loan money itself. Instead, it helps structure and customize lending arrangements among relatives: documentation, accounting, recordation, closing and servicing for home loans made by relatives who wish to keep the money in the family. For reverse mortgages, it offers step-by-step assistance online plus a calculator that allows participants to see how various contribution and disbursement arrangements would play out over time.”

When You’re Lending (or Giving) Money to Your Parents – December 5, 2014
“Many families are in the precarious situation of providing financial support to aging parents, which in some instances, can go on for a decade or longer,” says Timothy Burke, CEO of National Family Mortgage, a Waltham, Massachusetts-based company that helps family members loan each other money for mortgages. While most of the company’s loans are from parents to their adult children, “we’re seeing a significant increase in clients making mortgage loans to their parents,” he says.”

Is a Private Mortgage Right for You? – November 1, 2014
“All this might sound complicated, but there’s a four-year-old firm, National Family Mortgage, that will do the necessary paperwork for $725 . . . “For a lot of families, it’s all about keeping this relationship as businesslike as possible,” says National Family Mortgage’s chief executive, Timothy Burke.”

Low-Down-Payment Loans – May 1, 2014
“National Family Mortgage in Waltham, Massachusetts, sets up intra-family financing at low interest rates. The loans are structured to meet Internal Revenue Service requirements for what constitutes a loan, versus a taxable gift, said Timothy Burke, the founder and chief executive.”

Should You Give Your Kids a Mortgage? – August 20, 2013
“In order for your children to claim the mortgage interest deduction, the mortgage must be registered. That’s where companies like National Family Mortgage come into play.”

Borrow From a Family Trust – August, 2013
“For a one-time fee of $725, National Family Mortgage, a service that facilitates intra-family loans, handled the details. That included drawing up the promissory note, recording the deed and making sure the arrangement passed IRS muster so the couple can deduct the interest they pay and the trust doesn’t run afoul of gift-tax rules.”

Lending to Family Members? Know the Tax Rules – July 10, 2012
“Intra-family loans and financial gifts with relatives can be a win-win for both sides, but absolutely must be structured and documented properly to prevent misunderstandings with the IRS,” explains Timothy Burke, National Family Mortgage’s CEO and founder.”

YOUR MONEY: Helping your kids buy a house – April 4, 2012
“I call it a win-win mortgage,” says Tim Burke, chief executive officer of National Family Mortgage, which helps arrange such loans between relatives. “That’s because parents are earning more than they would be in their savings account, and borrowers have access to funding at lower rates than they’d get from a bank.”

First-time buyers lean on the bank of mom and dad – January 4, 2012
“In the case of an intra-family loan for a home buy, the borrower is supposed to disclose to the lender that they are getting a loan, and the lender will then factor the future loan repayment into the borrower’s debt-to-income ratio, impacting their borrowing limit, according to Timothy Burke, CEO of Norwood, Massachusetts-based National Family Mortgage, which helps families create and document intra-family loans.”

Home for the Holidays? How to Handle Five Awkward Money Questions – November 22, 2011
“If you’re helping out with someone’s mortgage, Laura Adams recommends using a site like NationalFamilyMortgage.com so borrowers can take advantage of tax benefits like the mortgage interest deduction.”

More Parents Finance Their Kids’ Mortgages – October 11, 2011
“For Baby Boomers who are unwilling to risk their money in the stock market, financing a child’s mortgage “is an opportunity to create a win-win,” says Timothy Burke, chief executive of National Family Mortgage . . .”

More Parents Financing Their Childrens’ Mortgages – October 5, 2011
“Timothy Burke told USA Today a family mortgage is an opportunity to create a win-win situation for parents who don’t want to take risks in the stock market right now.”

Making Mortgage Lending a Family Affair – November 4, 2010
“National Family Mortgage, which focuses on intra-family mortgages specifically, will help families structure a promissory note, including penalty terms . . .”