It is a familiar story, particularly these days. A young adult or couple wants to buy a home for the first time but they are rejected by the banks and mortgage companies. So they call on the ever popular Bank of Mom & Dad.
Now, mom and dad might have the money to fund a down payment or even the entire mortgage but they don’t want to just give the money away. Enter National Family Mortgage (NFM). They are what I call a direct p2p lender in that they help facilitate a direct loan between individuals.
This is the original peer to peer lending that has been happening for thousands of years. Since the invention of money people have been borrowing from family and friends. It happens every day in this country but most of the time it is very informal. But when it comes to buying a house, it pays to formalize the arrangements and it actually can be a win-win for both the investor and the borrower. [Read more…]