FHA reverse mortgage helps client

Mortgage adviser: Dominique Stevens. Property type: Single-family home in San Ramon. Loan amount: $355,000. Loan type: Fixed rate at 5.06 percent. Loan terms: Reverse equity conversion. Backstory: Stevens’ client, a retired IT manager, sought to refinance his primary residence, and take cash out to upgrade the property’s in-law unit.

He would use the in-law unit either for visiting family or to provide additional income to supplement his retirement.

Stevens showed her retired client he could utilize the Federal Housing Administration Reverse Mortgage program to accomplish several goals.

He would eliminate his mortgage payments forever on the primary residence and secure the $35,000 he was seeking for the property improvement.

She also showed her borrower that by eliminating the mortgage payments on his primary residence, use his retirement income to accomplish another goal, which was to purchase a vacation home in Oregon.

The FHA reverse mortgage program is available to homeowners ages 62 or older. They can live out their days in their own home, mortgage-free.

The homeowners are protected by government-backed FHA insurance. The loan also protects their heirs, for the remaining equity is left to them. This program only requires that the homeowner make necessary repairs to the property and keep up with the property taxes and insurance.

As non-taxable income, the payout does not affect the borrower’s Medicare, Social Security or pension benefits.

Dominique Stevens, Advantage Home Loans, (415) 250-8908, ds@dominiquestevens.com

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