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About Portland observer. (Portland, Or.) 1970-current | View Entire Issue (Jan. 21, 1998)
I » ' • ' • • '» f _ • « ’ ■ -, ’ • / '/ ■ ‘ • - < - ‘f . « .v ‘ .Mí ■*»- X » > M . •- .•.. . • i-.Z VA, ' ’ ■. Tÿrv- A ‘ W -* V.’ JA N . 21, 1998 Page A 6 (Ehe J J o r th n tò COhseruer (Elfe ^Jortlanb Of)bseruer Starting the New Year in a new home Tannic Mae. the nation s largest source ol home mortgage funds, has worked with lenders and housing partners nationwide to help m illions o f families start the New Year in a home o f their own. I he follow ing series ol proliles describes the experiences o f differ- ent home buyers and the local lend ers and institutions who helped them achieve the dream o f homeownership. These profiles are the result o f el forts made under Fannie Mae’ s Trillion Dollar Commitment to pro vide Kt m illion low-, moderate- and middle-income families and minor u\ borrowers w ith greater access to affordable housing opportunities bz the end ol the decade. Robbie Allen When Robbie Allen s husband passed away in 1993, her pension and Social Security income were re duced dramatically. A homemaker and long time resident ol Monterey Park. Mrs Allen was forced to rely on her daughter. Denise G ritlin . lor financial assistance. Her daughter soon realized th r’ she could not afford to support her self and subsidize her mother's in come She heard about reverse mort gages and arranged to meet with Kim Hughes, a gerontologist ami loan counselor at CiM AC Mortgage Ms. Hughes reviewed Mrs Allen's f i nancial situation and quickly deter mined that a Fannie Mae Home Keeper reverse mortgage would be the best solution. This financial tool allowed Mrs. Allen to convert the equity in her home into cash to address her per sonal financial needs. Through the use o f the Home Keeper reverse mortgage. Mrs Allen paid o il the $42.(XM) balance o f her mortgage loan, eliminating her $324 monthly mortgage payment. Now, she re ceives $677 per month and has a $20,000 emergency fund "1 consider m yself fortunate that I found out about reverse mortgages," said Ms G riffin. “ I'm sure there are many people just like me trying to help their parents but who can t re ally manage it financially Now Mom can stay in her house for as long as she likes, plus she has more income and a cushion for emergencies ' Mack Johnson Mack Johnson, a quadriplegic confined Io a wheelchair, is now a firs t-tim e home buyer in Reno. Johnson was referred to the Home ol Your Own (H O YO ) program and U S. Home Loans by Accessible Space. Inc . a nonprofit organization that works w ith disabled clients HOYO is a coalition o f nonprofits and lenders organized by Fannie Mae (NYSE: FN M ), the nation's largest source o f home mortgage funds, to help disabled individuals and fam i lies purchase homes. Johnson augments his monthly Social Security income by selling original paintings, which are done by holding a paint brush in his mouth. To help Johnson buy his home, HOYO gave him nearly $20,(MM) to pay an outstanding debt and cover part of his down payment and closing costs. Johnson contributed I percent ol the down payment from Ins own funds. Johns' -1 began the home-buying process in March, but was unable to find a ho ne that would meet his requirements The home Johnson finally purchased required additional modifications for wheelchair access, such as a wheelchair ramp and an accessible bathroom These con struction costs were also paid lor by HOYO Larry and Deborah Leverett I .an y and Deborah Leverett, who are both educators, are celebrating then first holiday season billow ing the purchase and renovation ol Deborah s childhood home inClifton. Tax opens hom eow ners choices -*•- What do you suppose caused Ronald and Gail Dueck o f San Diego to move out o f their home and swap places with the people who were rent- i ng another house the Duecks owned ! Answer: a new tax law. Last year’s mammoth tax b ill al lows homeowners to sell property they’ ve held lor years without suffer ing a big tax hit. That’ s because ol new capital gains rules that give couples a tax exemption on the first $500.000 in profit from the sale o f their home. The old rules had allowed sellers to defer taxes on proceeds o f a home sale by acquiring another home ol equal or greater value. The Duecks' rental property had accumulated substantial equity as they "traded up" from various houses since 1976 If they sold the rental under the old law, they would have laced a $120.000 tax b ill on that accumulated equity il they hadn t rolled those proceeds over into a bigger home. But once the Duecks have lived in their rental home lor two years, they w ill be able to sell the property and qualify for the $5(M).(XK) tax exclu sion under the new law. The law also gives singles a $250.<XX) exemption lor home sales alter May 6, 1997 This break can be used once every two years. "It's been tremendous what ’ s hap- pentng here It s Kind ot money from heaven, said Gail Dueck, a nurse. This new tax law is a sweet deal." Changes in the capital gains rules also give elderly people new free dom to sell their homes without lac ing a tax bite. "A lot of Americans have known for yeais their choice o f where they live isn I tree.' said David L.Gorsich. a tax specialist in San Diego. "It also revolves around tax considerations. The major change from old law is elimination ol a one-time $ 125.000 exemption for people age 55 and over. Significantly, the new law doesn't require people to buy more expen sive houses in order to deter taxes from sale o f their existing home. In doing so, the new law permits people to sell their home and move to a less expensive area ot the country or to a smaller residence, such as a condominium. Gorsich said this has opened up a v ariety o f opportunities. Some work ers may consider moving from C ali fornia. for example, to lake a jo b in the Midwest because housing taxes w on't be a factor any longer. "I'v e seen people turn down step ping smnes in their career because th<-y would have to sell their home, Gorsich said. “ I see this as removing tremendous restraints on society. Older couples could benefit greatly. Gorsich said he knows of V »Ider couples living in homes that have substantially increased in value- over the years. I hey would like to move out to a smaller condominium where maintenance wouldn't be such a problem, but they refuse because ol tax considerations. Sim ilar activity exists in the New . V . oi . k . C . ity suburbs, . i said i E llio tt Pl«i Slott, a certified public accountant in Hun tington, N Y. In some cases, people are selling their homes for less than market price, explaining that "I would have lost it in taxes anyway," Slott said. "Real estate brokers here are eating this up The house had been left vacant lor about a year follow ing the death o f Deborah's father, who had lived there since I948. By obtaining a Fannie- Mae Home-Style Standard Mortgage- through City National Bank ol New Jersey. Dr. and Mrs. Leverett were able to finance both the purchase of the house and the cost ol much- needed home improvements using Fannie Mae's innovative mortgage loan. HomeStyle Mortgages are 15- to 30-year, fixed rate loans that allow the financing o f up to 90 percent ol the as completed value ol the home, with the cost o f the improvement limited to a maximum oi 50 percent o f the loan The mortgage loan also represented a milestone for City Na tional the only African-American owned and operated bank in the State of New Jersey — as it originated its Inst HomeStyle loan. While the Leveretts' combined salary provided tor a comfortable lifestyle and a nest egg. the couple did not want to purchase and reno \ ate Ihe house at the exp nse o f their savings. Mrs. Leverett. an elemen tary schoolteacher, and her husband, superintendent o f the Public Schools GREAT HOUSE, GREAT PRICE & GREAT LOCATION Three bedroom, two baths, vaulted ceilings in living/dining and master bedroom. Large vaulted entry with hardwood & alcoves. Bayed window in living room. On culde-sac, brick accent, real wood trim, fenced & wood deck & large private side yard. Built 1990. $159.900. #HDC12836. Call Debbie (503) 703-5510 or 1-888-288-5432. More Choices For You. More Help Where It Counts. ol Plainfield. NJ. turned to City Na E v ery D o lla r C o u n ts tional THE SKY IS THE LIMIT IN CUSTOMER Big House No Problem! Little House No Problem! Acreage No Problem! I n c o n n e P r o p e g g ^ ^ ** ’■ You Name It.$ o Problem* ’•DREAMERS,” < I will find that dream house you want In the j j p »it want at the p ‘ yap Too New For Photo CADENA Customer Service Specialist w McCOY VILLAGE 2 0 5 F W Y /S R - 5 0 0 E a s y A c c e s s ! 3 bedroom ranch, updated bath, updated kitchen, hardwood floors, on large lot. $108,000. #HDC12441. Call Debbie Cadena about this and any other homes in any area. (503) 708-5510. BEAUMONT CLEANERS 4217 NE Fremont Portland, Oregon 97213 (503) 249-5972 $12 off of $30 or more $8 off of $20 or more $4 off of $12 or more 25% off Blankets 7:30 - 6:30 M-F 9:00 - 4:00 Sat. O.N.E. Company, Northeast Community Development Corporation (NECDC), and the following funders: Portland Development Commission. Bank of America. Enterprise Foundation, Oregon Corporation lor Affordable Housing. State Economic Development Department invite you to the GRAND OPENING o f the McCoy Village Affordable Housing Units al the comer of Martin Luther King. |r. Blvd. and Prescott. Saturday February 28. 1998 I lam to 3pm Applications now being taken on site. ..._
