Although mortgage rates and home prices are at an all time low, we’re currently dealing with a housing market that creates many barriers for first time home buyers. Often times even those that meet all the qualifications and have 20% available as a down payment, can be rejected. But leave it to the American people to find to turn a seemingly dead end situation into a window of opportunity. According to the National Realtors Association, 9% of first time home buyers last year received a loan from a family member or relative for their down payment. You might be wondering how this doesn’t eventually cause some major issues of liability within the family structure. In comes National Family Mortgage, a company founded by Tim Burke and headquartered in Norwood, Massachusetts. Their objective is to “minimize the legal and federal tax consequences that often occur when family real estate loans and financial gifts are documented improperly — or not documented at all”. National Family Mortgage is part of Burke’s commitment to empowering consumers to manage their finances via the internet. Each user is able to set the loan limits but within the company’s guidelines. The system favors the needs of both parties involved. According to the National Family Mortgage website, family mortgages provide a 4.5% return for investors (in comparison to a 2% return on CDs and 1.34% for savings account) and the mortgage rate for the borrower is an average of 75% lower than borrowing from a bank. The benefits are clear to see! In addition, they also offer a secured promissory note, amortized repayment schedule, registered mortgage, optional loan servicing, and a legal property description. Plus, borrowing from a family member can avoid closing costs and appraisal fees. Find out more at www.nationalfamilymortgage.com
Courtesy of:
nationalfamilymortgage.com
realtytimes.com
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