Family Backed Mortgage
Another example of flexible lending at The Northumberland National Bank is a unique mortgage loan we like to call a “Family Backed Mortgage”. This is another great “In-House” loan product provided by your friendly community bank.
This type of loan provides for an optional way for a young borrower(s), with limited or no down payment, to purchase a home. We refer to it as “Family Backed” because a family member (usually the parents) who own debt free residential real estate (or a great amount of equity exists) to pledge their property as additional collateral to cover the down payment position needed by the borrower(s). This is done in one mortgage loan paid by the borrower(s) and later on, when sufficient pay down has been accomplished over time, the lender can review the loan and collateral to consider releasing the additional collateral.
If you believe this is of interest to you, we encourage you to contact a Loan Officer at a branch office near you for more details.