Financing a home through a family member may have pitfalls. To simply and securely make arrangements for a family member to finance a new home purchase or refinance an existing home, it is critical that you utilize a professional Real Estate Agent and/or an Attorney and a title company that offers expertise in family member financing. If you consider the family member as "the bank/Mortgagee" it will be easier to determine which factors are important in your transaction. Family members should be careful not to take shortcuts and to treat their transaction just as they would if the transaction was taking place with a non-family member. Just like in a regular transaction, the Mortgagee/family member should require a down payment and proof of homeowners insurance. A title company will be able to provide title insurance just like they would in any other transaction. Title insurance will protect the Mortgagee from title defects (liens and encumbrances) not discovered during the title search. The title search will determine the actions which must be taken by the Seller/Owner to provide clear title to the property. Stay tuned for the final details and please remember to consult with professionals prior to undertaking family financing.