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JA N . 21, 1998
Page A 6
(Ehe J J o r th n tò COhseruer
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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.
..._