What is an Intra-Family Mortgage?
An intra-family mortgage is a real estate-secured loan between family members in which a relative acts as the lender instead of a bank, or with a bank.
For many families, the real question is not whether they want to help. It’s how to help wisely.
An outright gift, handshake loan, co-signing arrangement, or informal family deal can create problems families do not see coming until it is too late:
- divorce exposure
- estate settlement confusion
- loss of control over family wealth
- IRS imputed-interest issues
- missed mortgage-interest deductions
- awkward family tension around repayment expectations, fairness, and accountability
A properly documented and recorded family mortgage helps families support one another with more clarity, protection, and flexibility.
Why Families use Intra-Family Mortgages
A family mortgage can help parents and other relatives:
- keep money in the family with better rates for everyone
- protect family wealth with a recorded mortgage lien
- preserve repayment rights and future flexibility
- create clear expectations and accountability
- meet IRS Applicable Federal Rate (AFR) requirements
- support mortgage-interest deductibility where applicable
- keep the transaction business-like and easier to manage over time
Build Family Wealth
Document a Real Mortgage
Protect Family Relationships
Keep Things Business-Like
By the Numbers Since 2010
$ Billions
In loans between family members
$
3,225,000
Largest loan to date
4.62
%
Long-Term IRS AFR, April '26
When Families use Intra-Family Mortgages
Families often use intra-family mortgages when they want to:
- help an adult child buy a home without making an outright gift
- refinance a relative out of a high-rate commercial mortgage
- renovate a home using family capital secured by home equity
- sell a home to a relative using seller financing
- keep wealth in the family instead of sending interest to a bank
- earn a fair return on family capital while helping a loved one
- preserve fairness among siblings and heirs
- maintain the option to refinance, forgive, or transfer the loan later as part of a broader estate plan
Which Situtation Fits You?
Refinance with Family Capital
Replace bank debt with private financing.
Download the Refinance Guide
Why Families and Advisors Choose
National Family Mortgage ®
Since 2010, National Family Mortgage® has helped thousands of families nationwide document billions in family mortgages, with a historical default rate under 1%.
National Family Mortgage ® provides informational resources, documentation infrastructure, and optional third-party servicing support for eligible intra-family mortgage transactions. Families establish their own terms and use the platform to document arrangements in alignment with IRS-published guidance and applicable recording practices.
Our platform helps eligible families document arrangements that include:
- promissory note and mortgage documentation for the transaction
- execution and recording through a local settlement agent
- use of the term-appropriate IRS Applicable Federal Rate (AFR) in effect at closing
- optional third-party loan servicing with annual IRS reporting support
Explore the guide that fits your situation and understand how to document family financing in a way that protects both your finances and your relationships.
How It Works in Four Easy Steps
1
Read the Guide & gather details
2
Build your loan online
3
Review & e-sign
4
Close, record & manage payments