Even though lending has supposedly gotten better, lately, it's still not easy.  For young buyers, a good source of a home loan may be mom and dad.  With the fall in interest rates, these loans aren't as common as they once were, however, may are still being done.  Our youngest son and his wife have borrowed money from his wife's mother for their first two home purchases.  Yes, interest rates many be down but returns on investment vehicles are down, too, and that's why these types of loans are still popular choices.

     There are companies, that for a fee, will set up the loan, create the promissory note, record it, do the payment processing, and annual tax statements.  They will also handle collections on delinquent accounts.  If your child defaults, and the percentages are very low, by having all the documentation done, you can also qualify for a tax loss under IRS rules.  

      I'm not going to go into all the pluses and minuses of this program, here, but I did want you to consider this as an option.  Do an on line search for "intrafamily loans", to get additional information and companies that provide these services.