Black Enterprise

A Mortgage That Pays Your Family Instead of a Bank
“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.”

Realtor.com

Dear Mom and Dad: Can You Give Me a Mortgage?
“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.”

Kiplinger

All in the Family Reverse Mortgages
“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.”

ConsumerReports (Subscription)

How to Fund a Down Payment
“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.”

Forbes

Retiree Role Reversal: How To Pull ‘The Old Switcheroo’ And Ask Your Kids For A Reverse Mortgage
“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.”

Financial Planning

My 7 Smartest Financial Moves
“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 and service the loan.”

Black Enterprise

Intrafamily Mortgages – Paying Your Family Instead of a Bank
“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.”

The New York Times

Reverse Mortgages, Family Style
“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.”

Inman News

Reverse Mortgage Option Helps Homeowners Keep it in the Family
“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.”

The Washington Post | Ken Harney

When the Kids Provide a Reverse Mortgage to Mom and Dad
“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.”

Kiplinger

How to Help Your Adult Kids Buy a Home
“If you don’t want to act as the loan servicer, you could use National Family Mortgage to set up, document and service the loan. It will e-mail payment reminders and monthly statements, collect and credit payments, and issue year-end IRS 1098 and 1099-INT tax forms.”

US News & World Report

When You’re Lending (or Giving) Money to Your Parents
“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.”

WSJ | Jonathan Clements

Is a Private Mortgage Right for You?
“All this might sound complicated, but there’s a four-year-old firm, National Family Mortgage, that will do the necessary paperwork for $725. The Waltham, Mass., company will also oversee payments for a fee of $15 a month and up, including providing monthly statements and annual tax reporting. “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.”

NewHomeSource.com | Ken Harney

The ‘Bank of Mom and Dad’ for your Mortgage Money?
“National Family Mortgage specializes in home loans among family members and handles the entire process — the upfront paperwork blitz, the recordations required by local governments and the ongoing servicing functions of collecting and keeping track of payments. During the past several years, National Family has facilitated nearly a quarter of a billion dollars worth of loans ranging from $11,000 to $1.6 million, according to CEO and founder Tim Burke.”

The Huffington Post

3 Steps to Make Friends-and-Family Financing Work
“We highly recommend you use services like National Family Mortgage to formalize the agreement, streamline the payments, and make the tax returns simple. National Family Mortgage’s agreement actually puts a lien on your house. In the case that your loan defaults or you pass away suddenly, your friends’ and family’s investment in your business would be protected.”

MortgageLoan.com

7 Alternatives to a Traditional Mortgage for Buying a Home
“One way to do a family loan is through National Family Mortgage, which facilitates home loans between relatives for a one-time fee of $725. The company generates the financing documents and registers the mortgage with the proper government authorities.”

The SFGate

More ways parents can help adult children buy homes
“National Family Mortgage helps people structure legitimate intra-family loans. National Family Mortgage charges $725 to structure the note and register it with the proper government authorities. It also offers an optional loan-servicing platform that will send out monthly statements, collect payments and send out year-end tax forms.”

Interest.com

Should you lend your child money to buy a home?
“National Family Mortgage also can help parents and children manage a mortgage with its loan servicing option, which will send a monthly statement and payment reminders, provide electronic payment processing and online account access, and establish an escrow account for property taxes and insurance.”

The SFGate

Answers to intra-family loans
“National Family Mortgage is a bona fide servicer for family loans, but it only services secured real estate loans between first-degree family members, including parents, grandparents, children, spouses and grandchildren . . .”

The New York Times

Low-Down-Payment Loans
“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.”

The Washington Post | Ken Harney

First-time home buyers already burdened by debt often need help to qualify for mortgages
“The largest player in the field, National Family Mortgage, has structured and serviced more than $155 million worth of intra-family transactions in the past two years and is on track, according to founder and chief executive Tim Burke, to do $150 million in volume during 2014.”

CreditCards.com

Lending to friends and family: Your 4-step guide
“Use your personal experience and history with this individual to make a wise decision,” advises Timothy Burke, founder and CEO of National Family Mortgage, which manages home-financing arrangements between family members.”

TheWealthChannel.com | Michael Kitces

Strategy for Intra-Family Mortgage Loans
“An interesting new solution in this space is National Family Mortgage, a company that functions as the middleman to help process and maintain intra-family mortgage loans, handling everything . . .”

LearnVest.com

Family (Money) Matters: The Right Way to Give Loans to Relatives
“Intra-family loans work best as a deliberate investment strategy,” says Timothy Burke, C.E.O. of National Family Mortgage, an organization that has helped family members lend more than $120 million to one another to pay for mortgages since 2010.”

AARP | Jean Chatzky

Should You Give Your Kids a Mortgage?
“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 . . . They’ll prepare a promissory or mortgage note that sets out the terms, interest rate, payment dates and frequency.”

Kiplinger

Borrow From a Family Trust
“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.”

MainStreet.com

Loan Money to Friends and Family Without Getting Burned
“People have been borrowing from, and lending money to, family members and friends for centuries,” says Tim Burke, founder and CEO of National Family Mortgage. His company, launched in 2010, helps those who want to finance private home mortgages for friends and family.”

DimeSpring.com | Laura Scharr-Bykowsky

Q&A: How do I help out family members with their finances?
“According to a recent MetLife study, nearly half of Americans say they gave money to a family member in the prior year to help pay bills. But mixing money with family is tricky . . . Set firm time tables for the support. You’re entitled to know how much you’ll be giving and when you’ll be getting it back. Consider an intra-family loan, but draw up legal papers. For resources, look into www.NationalFamilyMortgage.com . . .”

Kitces.com | Nerd’s Eye View

An Efficient Solution To Implement Intra-Family Mortgage Loan Strategies
“A new solution has emerged – a company called National Family Mortgage, that completes all of the required documentation, records the mortgage, helps to service the loan, and even issues the requisite IRS reporting forms, all for a fraction of the cost of a traditional mortgage loan origination fee.”

LearnBonds.com

Help Your Children Buy a House Without Getting Into Trouble With the Taxman
“There are number of companies that offer services that facilitate lending money to family. We strongly recommend that you go with National Family Mortgage when lending money to family. Current AFR rates are available from the National Family Mortgage website.”

NerdWallet.com

P2P Lending: Borrowing Beyond The Bank
“Timothy Burke, CEO of National Family Mortgage, said he thinks it’s important to remember the difference between all the platforms that fall under the peer-to-peer umbrella. “National Family Mortgage is facilitating true peer-to-peer mortgage loans, generally between relatives,” Burke said.”

US News & World Report

How to Lend Money to Family and Friends
“If you’re loaning money for someone’s mortgage, use NationalFamilyMortgage.com to take advantage of tax benefits, suggests Asheesh Advani, CEO of Covestor.com and author of, Business Loans from Family & Friends: How to Ask, Make It Legal & Make It Work.”

LifeGoesStrong.com

Is a Family Home Mortgage Right For You?
“These transactions go on all the time, but people don’t document them,” says Timothy Burke, CEO of National Family Mortgage, an online resource where families can structure, document and register mortgage loans between relatives.”

MSN Real Estate

Need a Mortgage? Try the Bank of Mom and Dad
“National Family Mortgage charges a one-time fee to help families draw up contracts and register tax-deductible mortgage liens. Loan servicing, available for an additional $15 a month, includes monthly statements, electronic accounts, escrow, tax-reporting help and customer support.”

NBCnews.com

Zuckerberg is not the Only One Who Can Get Super Low Mortgage Rates
“Still another option for supremely low-interest loans: Go through a rich uncle or another well-to-do family member. That arrangement may be more common than you know, said Tim Burke, the CEO of National Family Mortgage in Boston. He has set up thousands of such loans between relatives.”

TheStreet.com

Lending to Family Members? Know the Tax Rules
“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.”

MainStreet.com

10 Financial Tips for the Prospective Home Buyer
“If you’re borrowing down payment money from relatives it’s very important to document the transaction properly to both protect relationships and avoid gift tax issues,” says Tim Burke with National Family Mortgage.”

Reuters

YOUR MONEY: Helping Your Kids Buy a House
“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.”

Chicago Sun-Times | Terry Savage

Creating a Mortgage For Your Relatives
“NationalFamilyMortgage.com specializes in handling the entire documentation and registration process for inter-family mortgage loans. Founder and CEO Tim Burke says NFM has structured more than $27 million in mortgage loans.”

Chicago Tribune

Tapping the Bank of Mom and Dad Generating Interest
“Since its founding in November 2010, the Norwood, MA based firm has helped arrange more than $19 million of mortgages, down payments and refinances between family members.”

B2C

Washington Beware, It’s a New Day
“Since the movement’s leaders are Betterment, BillGuard and PerkStreet — and now National Family Mortgage — all Internet companies committed to delighting their customers — and whose products appeal to Boomers — my guess is watch out Washington — a very loud voice may be heard roaring over the horizon.”

MT Mortgage Technology

Technology Facilitates Safer Intra-family Mortgage Lending
“At the P2P vendor National Family Mortgage, 80% of the loans the company helps structure are between parents and a child. Typically, these loans help cover the cost of a down payment on a home purchase.”

Reuters

First-Time Buyers Lean on the Bank of Mom and Dad
“National Family Mortgage advises parents and children draw up a formal loan agreement and repayment plan, and to record the loan as a lien against the property. Doing so makes the adult child accountable but also turns the interest on the intra-family loan into one that’s tax-deductible as mortgage interest.”

US News & World Report

Home for the Holidays? How to Handle Five Awkward Money Questions
“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.”

Florida Realtor

Keeping Financing in the Family
“Burke said there are complex tax rules for legitimate loans between family members. If the loans aren’t properly structured there can be tax consequences for both parties.”

Deseret News

Mortgages From the Bank of Mom and Dad
“Burke said the average person isn’t aware of the complex tax laws surrounding both financial gifts and loans to family members.”

KSL.com Utah

More Parents Financing Their Childrens’ Mortgages
“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.”

USA Today

More Parents Finance Their Kids’ Mortgages
“National Family Mortgage has helped families finance more than $12 million in loans, ranging from an $18,500 down payment to a $1.17 million refinancing.”

FiGuide.com

5 Rules for Lending Money to a Family Member
“Timothy Burke of NationalFamilyMortgage.com deals directly with family members seeking assistance managing the inter-family loan process.”

Today Show

Some Rules For Helping Your Kids Buy a Home
“Given current market conditions, a compelling argument could be made for helping your kids buy their first home.”

P2P Lending News

National Family Mortgage Facilitates Home Loans Between Family Members
“National Family Mortgage has developed a process to setup a legal mortgage loan agreement between family members.”

LendAcademy.com

Investing in a Family Mortgage Can be a Win-Win
“Mom and Dad might have the money to fund a down payment or even the entire mortgage but they don’t want to just give the money away. Enter National Family Mortgage.”

Financial Planning Association

Intra-Family Loans Can Help Children Get a Home
“One possible solution to get the funding that you need and help Mom and Dad earn a better yield for some of their fixed income is an intra-family loan.”

DailyFinance.com

Peering Into the Peer-to-Peer Lending Boom
“P2P Lending is projected to soar to $5 billion in outstanding loans by 2013,” says Timothy Burke, CEO of National Family Mortgage, an online resource for families structuring and managing real estate loans with their loved ones.”

American Banker

The Price of Entry Rises in Peer-to-Peer Lending
“Tim Burke started National Family Mortgage to arrange formal loans between family members for the purchase or refinancing of a home.”

The New York Times

Making Mortgage Lending a Family Affair
“National Family Mortgage, which focuses on intra-family mortgages specifically, will help families structure a promissory note, including penalty terms, and will also file the loan with the appropriate government authority.”