When a family member issues a second mortgage to another family member are they required to charge a specific interest rate. The situation is a son is purchasing a house he will have a mortgage company as his primary lender and then his father is lending him money in secondary position. The loan will be based on a 30 year time frame but hopefully be paid off in 5 years.

purchasing a home is there a min rate that a family member has to charge another family member to lend them money?When a family member issues a second mortgage to another family member are they required to charge a specific interest rate. The situation is a son is purchasing a house he will have a mortgage company as his primary lender and then his father is lending him money in secondary position. The loan will be based on a 30 year time frame but hopefully be paid off in 5 years. by sssandelin from Sonora, California. Oct 27th 2009 Reply