Intra-family Mortgage Loan Standards

Last Revised on September 21, 2017

In order to provide the greatest number of clients efficient, exceptional service, we target specific, common Family Mortgage transactions that allow us to offer a strong value. We sincerely believe that we’re the best at what we do, but sometimes, we’re simply not the right solution. Sometimes, complex real estate transactions require the expertise of a local attorney or other applicable service providers.

Please review our Standards below to help determine if your transaction falls within our service model “sweet spot.”

Many thanks and we look forward to helping you!

THE LOAN PARTIES

We only facilitate loans between family members.

All Borrowers and Lenders must be US residents and have either a US Social Security Number or Tax ID Number. At least one Lender and one Borrower must share one of the following relationship dynamics, including adoptive and step relationships:

Grandparent <> Grandchild, Parent <> Child, Sibling <> Sibling, Aunt/Uncle <> Nephew/Niece, Spouse <> Spouse

Loans may also be made from or to a Trust, provided the Trustee of the Trust and at least one counter-party (Borrower/Lender) share one of the family relationship dynamics listed directly above.

We do not facilitate loans between Ex-Spouses, Cousins, Friends, Colleagues, or loans from family owned FPs, FLPs, LLCs, LPs, LLPs, Life Estates, or Self-Directed IRAs.

The Lender may not co-own the subject property with the Borrower. Meaning, we do not facilitate transactions when the Lender has a Tenant in Common interest in the subject property with the Borrower.

THE PROPERTY DETAILS

All intra-family loans will be secured by a residential single-family home or condominium located in the US. The property may be the Borrower’s primary residence, secondary residence (vacation home), or an investment (rental) property.

All intra-family loans are secured by the proper state and county specific real estate lien as either a primary lien, a secondary lien, or a tertiary lien:

Deed of Trust | Mortgage | Security Deed

We do not facilitate loans secured by the following types of properties:

Agricultural / Farm Land
Co-Operatives
Commercial / Retail Property
Duplex / Multi-Family Property
Foreclosure Properties and/or Short-Sales
Forest, Mountain, Rural Property
Manufactured Homes
Mobile Homes
Relocation Properties (Corporate Relocation Package)
Vacant Land

We do not facilitate transactions documented under the following circumstances or agreements:

Construction Loans
Contract for Deed
Leasehold Agreements
Lease to Purchase Agreements
Wrap-Around Mortgages

THE LOAN PURPOSE

To Purchase Property or to Seller Finance Property

We facilitate Purchase / Seller Finance loans in all 50 states. All Purchase / Seller Finance transactions are considered “Private Financing” and NFM documentation must be integrated into escrow/settlement with the local closing attorney, title company, or escrow company, that will otherwise conduct the Buyer’s / Borrower’s real estate settlement.

To Refinance Property, to Renovate Property, or to Borrow Home Equity

We facilitate Refinance / Home Improvement / Home Equity loans in the following states:
AR, AZ, CA, CO, CT, FL, ID, IL*, IN, MI, MO, MS, NE, NH, NJ, NM, NV, OR, PA, UT, WA, WI.
(This means the Borrower’s subject property is located in one of these states listed directly above.) Participation of local closing attorney, title company, or escrow company is not required.

If you wish to Refinance Property, to Renovate Property, or to Borrow Home Equity and the subject property is not located in one of the states listed directly above, unfortunately, we cannot help you.

* If you wish to Refinance Property, to Renovate Property, or to Borrow Home Equity and the subject property is located in Cook County, Kane County, Peoria County, or Will County, unfortunately, we cannot help you.

To Reverse Mortgage (Family Funded Line of Credit)

We facilitate Family Funded Reverse Mortgage loans in the following states:
AR, AZ, CA, CO, CT, FL, ID, IL*, IN, MI, MO, MS, NE, NH, NJ, NM, NV, OR, PA, UT, WA, WI.
(This means the Borrower’s subject property is located in one of these states listed directly above.) Participation of local closing attorney, title company, or escrow company is not required.

If you wish to facilitate a Family Funded Reverse Mortgage secured by a property located in a US state other than those listed directly above, we are happy to work in conjunction with your local attorney.

* If you wish to facilitate a Family Funded Reverse Mortgage secured by a property located in Cook County, Kane County, Peoria County, or Will County, we must work in conjunction with your local attorney.

THE LOAN TERMS

We currently offer three products with four available Loan structures:

The Win-Win Mortgage ® : Amortized (Fixed payment of Principal & Interest) or Amortized with Balloon

The Gift Mortgage ® : Interest-Only

The Caregiver Mortgage ® : Reverse Mortgage Line of Credit

All intra-family loans must meet or exceed the proper IRS Applicable Federal Rate at the time the loan is made.

All intra-family loan repayment terms and/or amortization period must be between 1 – 30 years.

All intra-family loan repayment schedules require monthly payments, due on the first of every month. (With the exception of our Caregiver Mortgage ®, as no monthly payment is required.)

All intra-family loan late payment fees charged to the Borrower shall be a minimum of 1.00% and a maximum of 4.00% of the Borrower’s standard monthly payment amount.

All intra-family loans include a payment grace period of 15 days.

All intra-family loans have no pre-payment penalty.

LOAN SERVICING

We only facilitate Loan Servicing for transactions generated through our software platform. If you’ve already documented your intra-family loan some other way, and are only interested in the Loan Servicing, we can’t help you.

We do not facilitate escrow/impound accounts for the Borrower’s property taxes and homeowner’s insurance.

THE ONLINE APPLICATION

Generally speaking, either the Borrower or the Lender may submit our online Application and submit our one-time setup fee. However, if the subject property is in either Maryland or Pennsylvania, then the Borrower must submit our online Application and submit our one-time setup fee.

The setup fee must be paid by either the Lender or the Borrower and cannot be paid by some related third party (like another family member or an advisor.)

The Application should be submitted no more than three weeks before the projected loan issue / loan closing date.

THESE STANDARDS ARE NOT ALL INCLUSIVE AND YOUR UNIQUE OR UNUSUAL CIRCUMSTANCE MAY NOT BE SUPPORTED BY OUR PLATFORM.

PLEASE DOWNLOAD THE APPROPRIATE FREE PRODUCT GUIDE, WHICH ALSO INCLUDES THESE STANDARDS ABOVE, AS WELL AS ADDITIONAL INFORMATION ABOUT APPLICABLE DOCUMENT RECORDING TAXES THAT APPLY IN THE FOLLOWING STATES:

Alabama, Florida, Hawaii, Georgia, Minnesota, New York, Oklahoma, Virginia, Tennessee.