Lending (be the bank) for a siblings mortgage

[Michael P.]

I'm considering acting as the bank and lending to a sibling who is buying a house.

1) Is the interest I receive taxable as interest income, or can it be considered gifts between family members?

2) Do you know of a good third party service that tracks everything instead of using a spreadsheet?

Thanks in advance for your comments

[Thomas S.]

Don't do it unless you are prepared to foreclose. Never mix family and money.

Yes the interest is taxable as income.