Win-Win Mortgage®

(Principal & Interest)

Gift Mortgage®

(Interest-Only)

Optional Loan Servicing

Win-Win Mortgage ® (Principal & Interest)

Our Win-Win Mortgage ® is designed to help you earn a better return than comparable safe investments, like, CDs or savings bonds, while providing your Borrower with a lower interest rate than otherwise offered by the banks. You’ll save your Borrower thousands of dollars in origination fees and interest — and you’re keeping money in the family!

  • Amortized, Secured Promissory Note and Payment Schedule
  • Registered, tax deductible Mortgage, Deed of Trust, or Security Deed
  • For Primary Financing, Secondary Financing, or 100% Financing
  • Optional Loan Servicing, IRS 1098 & INT-1099 Tax Reporting
One-Time Setup Fee
Loan Size Price
$1,000,000+ $2,100
$500,000+ - $1,000,000 $1,725
$300,000+ - $500,000 $1,425
$200,000+ - $300,000 $1,075
$100,000+ - $200,000 $875
$1 - $100,000 $725

Gift Mortgage ® (Interest-Only)

Our Gift Mortgage ® is simply an interest-only loan. Some clients use the interest-only loan as an easy framework to manage annual gifting. With a low interest loan at the IRS Applicable Federal Rate (AFR), Lenders may choose to annually transfer wealth up to the IRS $16K per person limit. This framework can help you keep money in your family while minimizing federal gift tax or imputed interest consequences.

  • Interest-Only, Secured Promissory Note & Payment Schedule
  • Registered, tax deductible Mortgage, Deed of Trust, or Security Deed
  • Great for managed generational wealth transfer
  • Optional Loan Servicing, IRS 1098 & INT-1099 Tax Reporting
One-Time Setup Fee
Loan Size Price
$1,000,000+ $2,100
$500,000+ - $1,000,000 $1,725
$300,000+ - $500,000 $1,425
$200,000+ - $300,000 $1,075
$100,000+ - $200,000 $875
$1 - $100,000 $725

Optional Loan Servicing

Optional Family Mortgage loan servicing program, powered by FCI Lender Services, Inc., sets clear expectations, protects family relationships, and generate accurate year-end tax forms.

  • Email payment reminders & monthly statements
  • Electronic payment processing & no pre-payment penalties
  • Payoff Statement Preparation
  • Lien Release preparation & filing*
  • Annual IRS Tax Forms: Borrower 1098 | Lender INT-1099

There is a one-time $55 Loan Servicing account setup fee that will be withheld from the first loan deposit to your designated bank account.

The monthly servicing fee for family mortgage loans up to $400k is $15 per month.

The monthly servicing fee for loans over $400K up to $1M is an additional $10/month per $100K:

$400K+ up to $500K = $25 | $500K+ up to $600K = $35

$600K+ up to $700K = $45 | $700K+ up to $800K = $55

$800K+ up to $900K = $65 | $900K+ up to $1M = $75

Loans over $1M, add $20/month, per million:

$1M+ up to $2M = $95 per month | $2M+ up to $3M = $115 per month

If the Borrower elects to pay the monthly Loan Servicing fee, it is collected electronically along with the Borrower’s monthly loan payment. If you elect to pay the monthly Loan Servicing fee, it is withheld from the monthly loan payment credited to your designated bank account.

FCI Lender Services can also collect and hold the Borrower’s monthly property tax / insurance proceeds in a trust account and disburse the scheduled payments to the respective authorities when due. There is a one-time escrow analysis fee of $175 for this account upgrade and a $17.50 monthly fee above and beyond the standard monthly Loans Servicing fees as outlined above.

*Once a loan has been satisfied, FCI Lender Services, can prepare and file the lien release as part of closing out your family’s Loan Servicing account (with the exception of properties located in Colorado.)

About FCI Lender Services, Inc.

Since launching in 2010, our exclusive Loan Servicing partner has been FCI Lender Services, based in Anaheim Hills, California. When requested, your National Family Mortgage ® document package will also include Setup Forms for our optional Loan Servicing platform powered by FCI Lender Services.

As a leading, Dodd-Frank Act compliant, US mortgage loan servicing company, FCI Lender Services has been in business since 1982, with over $5 Billion in loan volume currently under management. In addition to supporting National Family Mortgage ® clients, FCI Lender Services also manages mortgage loan servicing for dozens of Banks, Credit Unions, Investment Firms, Hedge Funds, Pension Funds, and Insurance Funds. FCI is a top rated “Special Servicer”, with the highest industry rating available from Fitch Ratings, Inc., the mortgage servicing rating company located in New York City.

FCI Lender Services is fully compliant with all state mortgage loan servicing regulations and all national loan servicing rules impacting both lenders and servicers under the Dodd-Frank Act, as enforced by the Consumer Financial Protection Bureau (CFPB). FCI’s comprehensive licensing information can be verified on the National Mortgage Licensing System’s (NMLS) consumer access website: https://www.nmlsconsumeraccess.org

Future Modifications to the Loan Documents – $400 Per Modification**

Upon request, FCI Lender Services, Inc. ® can assist loan servicing clients with various loan Modifications, including:

(1) Formal Interest-Rate Modification to Promissory Note.
Please note, conservative tax professionals discourage Interest-Rate reductions (Modifications) on Family loans. In short, Lenders who grant their Borrower a rate reduction as the IRS Applicable Federal Rates fall, arguably make a reportable lump-sum financial gift of the Borrower’s total interest savings recognized over the life of the loan. Please consult your trusted tax advisor before reducing the rate on your loan.

(2) Formal Re-amortization of Borrower Payment Schedule Following Large Principal Pay-Down.

(3) Formal Conversion of Amortized Promissory Note to Interest-Only Promissory Note or Vice Versa.

If necessary, FCI can also assist with allonge preparation, assignment preparation and recording, and deferment agreements.

**FCI charges an additional $55 administrative fee to reset the loan and implement any account changes as referenced above.

If for any reasons you decide to cancel your Loan Servicing account and manage your loan on your own, there is a $90 Loan Servicing cancellation fee.

Knowledgeable and friendly customer service representatives are available Monday thru Friday, 8AM – 5PM PST to answer questions and respond to change requests to or account updates.

Setup Details: Four Easy Steps

1. Structure the Loan

Once you and your Borrower have agreed upon loan terms, either one of you may initiate the online setup process, 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.

Please be prepared to provide:

  • (A) Lender and Borrower contact information: Names, addresses, email addresses, phone numbers
  • (B) Subject property details: Property address, name of current owner of record, name of condo association if applicable
  • (C) Family Mortgage loan details: Loan amount, loan disbursement date, interest rate, payment term, late fee, 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

2. Document the Loan

Within one business day of submitting your online Setup Form, a Family Mortgage Advisor will call you to confirm the details of your loan. Within seven business days of submitting your online Setup Form, we will email both parties your comprehensive loan documents for your review and approval.

All National Family Mortgages ® have two crucial components:

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

Mortgage / Deed of Trust / Security Deed: This is the legal security instrument through which the Borrower offers their property as collateral to you in exchange for the loan.

We will also include setup forms for the optional Family Mortgage loan servicing program.

3. Register the Loan

National Family Mortgage ® will coordinate scheduling details and expectations with Borrower’s closing attorney, title company, or escrow company that will otherwise conduct the Borrower’s real estate settlement. Please note, there is generally only one settlement agent, be it an attorney, title company, or an escrow company. The type of settlement agent is determined by state regulations and customs. Typically, the real estate agents involved with the transaction will help guide the selection of the Borrower’s settlement agent.*

After you have reviewed and approved your loan documents, the documents are emailed to the Borrower’s settlement agent. The settlement agent will oversee the execution and government recording of your Family Mortgage.

* If the Borrower’s property is in Texas, we require the Borrower’s real estate closing must be conducted by either a Texas law firm or a Fee Attorney. A Fee Attorney refers to a lawyer who has entered into a contractual relationship with a title insurance company, or who serves as an agent of a title insurance company, to close real estate transactions on its behalf in exchange for a portion of the title insurance premium.

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 the Borrower’s settlement agent.

When you’re ready, you may also disburse the purchase funds directly to the Borrower’s settlement agent, per their instructions.

National Family Mortgage ® does not disburse funds.

4. Manage the Loan

Optional Family Mortgage loan servicing, powered by FCI Lender Services, Inc., sets clear expectations, protects relationships, and makes year-end tax reporting simple.

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