Chitownproperty

Some home buyers might forget that they can also turn to relatives to help them finance their purchase. At a time when interest rates from banks are rising, borrowing money from a family member can be a less expensive option since they will charge a much lower rate, if at all. Buyers typically borrow enough money to be able to make a 20 percent downpayment, and their relatives often loan this money at a 1.5 to 2 percent discount from market rates. But there are a number of rules for mixing personal relations with business, as this Tribune article outlines.