Making a mortgage loan to a family member can be a win-win deal.

Proper documentation prevents tax problems and protects relationships.

How It Works in Four Easy Steps


Gather information & submit online Setup Form


Documents emailed to family for review within 7 business days


Documents emailed to Borrower's closing agent for execution/recording


Lender disburses money to closing agent. Optional loan management & IRS tax data

The Details:

Real estate loans and financial gifts with relatives can be a win-win for both sides, but should always be documented. National Family Mortgage ® helps minimize the legal and federal tax consequences that can occur when family real estate loans and financial gifts are handled informally – or not documented at all.

You can use a National Family Mortgage ® in many of the same situations you might use a traditional bank mortgage, including:

  • A family funded Reverse Mortgage: Our Caregiver Mortgage ® is a secured line of credit, funded by you, to help a retired loved one. When your Borrower’s home is sold one day, or upon the settlement of their estate, the credit line is repaid.

We want to help you make a loan that you feel good about, that prevents tax problems, and protects your relationships. We want to help your Borrower fund their dreams and and enjoy their retirement. Our goal is to make family mortgage lending and borrowing safe, easy, secure, and successful.

Our Caregiver Mortgage ® is available in the following states:

Alabama, Arizona, California, Colorado, Connecticut, Delaware, District of Columbia, Florida, Georgia, Illinois*, Indiana, Kentucky, Louisiana, Massachusetts, Maine, Maryland, Michigan, Minnesota, Missouri, New Hampshire, New Jersey, New Mexico, New York, North Carolina, Oregon, Pennsylvania, South Carolina, Tennessee, Texas, Utah, Vermont, Virginia, Washington, Wisconsin.

(This means the Borrower’s subject property is located in one of these states listed directly above.)

* If the Borrower’s subject property is located in Cook, Kane, Peoria, or Will County, the local Estate attorney or Elder attorney who will otherwise conduct the Borrower’s loan closing must obtain a Private Lending Exemption Certificate (PLEC) from the state of Illinois Anti-Predatory Lending Department as required under state law in order to record the Mortgage.

If you wish to facilitate a Caregiver Mortgage ® secured by a home in a US state other than those listed directly above, unfortunately, we cannot help you.

Please be sure to review our company Standards for complete restrictions and limitations.

Structure the Loan

How much are you going to lend? How much interest are you going to charge? How much cash-flow does your Borrower need each month? How long do they hope to remain in the property? Our free Family Mortgage Guide has lots of information on how to work with your Borrower to ensure a successful loan. We also have a great calculator on the Products / Pricing page to help you get started.


Document the Loan

Once you and your Borrower have agreed upon loan terms, it’s time to make the agreement legally binding. Either you or your Borrower may submit your loan details through our secure online Setup Form, 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.

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 your Borrower offers their property as collateral to you in exchange for 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. Within seven business days of submitting your online Setup Form, we will email your comprehensive loan documents for your review and approval. The documents will also include an open lien search and an electronic valuation of the Borrower’s property.

Register the Loan

After you have reviewed and approved your loan documents, the documents are emailed to the Borrower’s 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.

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