Ideally, we’d like to limit mortgage debt to no recourse, and no cross collateral.  

Your Cash Value remains in the Policy earning dividends and serving as collateral for the loan.

The important points often glossed over are (1) is the buyer providing their personal guarantee to the seller for the note (2) is the seller maintaining a wrap position so they can foreclose in the event of default and gain ownership (3) is the buyer putting up additional collateral (4) how large is the down payment (5) what is the LTV (6) is this a personal residence for the seller or investment property (7) will the property cash flow and if so what will the cash flow be (8) is the property in a increasing, declining, or stabilized area (9) is the property being sold at market value, or above market value because of the low interest rate of the existing mortgage and (10) how experienced and what is the track record of the buyer, and is the buyer purchasing a property for investment or to live in or otherwise use.  

You can just partner up with the family member and they can put the house as collateral to get a loan. 

Hi David,The best way structure this would be with a higher collateralized loan to value loan.There are a few funds who allow up to 90% CLTV.

They were familiar with the whole life policy collateral structure and gave him a decent rate.

We do cross collateralized loans all the time.

Your line of credit is based on collateral.

.### Option 2: Portfolio Loan- **Pros**: A portfolio loan allows you to use multiple properties as collateral for a single loan.

As long as you are always realistic about the collateral value and the borrowers ability to execute the business plan, you can't go wrong.