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.