Dorie reports that clients who want to help their parents have asked her if there is such a thing as a Caregiver Mortgage. Yes there is! It was created by National Family Mortgage of Belmont Massachusetts. This new loan product is fundamentally a private, less regulated version of a reverse mortgage.
There have been home purchase loans funded by the buyer’s parents in effect for some time. Now there is a need for a new product where siblings can pool their money to help their elders in a similar way. One mortgage is created with a fractional participation agreement among the individual siblings or “lenders.”
Family members have the opportunity to crowd-fund a line of credit against the equity in the parent’s home. There is measurable accounting with this process and less squabbles occur as to who paid more to help out. An official loan formalizes each participant’s obligation under the arrangement. There is an authentic paper trail!
National Family Mortgage charges a $2,500 fee to assemble and record the promissory note, the joint lender agreement and the mortgage. It does not require an appraisal or inspection. The company’s loan-tracking platform calculates the lender’s interest earnings at year end for reporting to the Internal Revenue Service.
Dorie suggests that families considering such an arrangement should still consult with an experienced lawyer.
Selling or buying a NW Austin home is a complex process and you want to work with a REALTOR® that understands the process and the ever changing dynamics of the Austin housing market. Dorie has systems in place, references and she is a good listener and communicator. It would be Dorie's pleasure to schedule a time to see if you and she are a good match. Reach out to Dorie at 512.346.1799 or email at This email address is being protected from spambots. You need JavaScript enabled to view it.. She offers you hands-on Professional guidance for all your real estate needs.
