Scenario Examples



  • Richard W, age 75
  • Barbara W, age 75

Home value: $636,150

Mortgage Balance: $76,000

Both Richard and Barbara had meaningful careers and recently retired. While they each received Social Service benefits, the combined amount of money was not sufficient to maintain their standard of living. They did not wish to liquidate their earning assets, due to the depressed market at the time. They were also concerned about having a reserve fund immediately available to them in case of an unanticipated health emergency.

The Solution:

They chose a reverse mortgage, which provided a monthly payment TO THEM of $3,000 for the next 13 years. The funds were maintained in a Line of Credit, which grew compounded, was insured by FHA and upon which they could draw at will. Looking forward, at age 88, when all funds would be expended, their options would be to either refinance the reverse mortgage (if their home went up in value) or liquidate other financial assets.


  • Gil A, Age 67
  • Karen A, Age 64

Home Value: $625,500

Mortgage Balance: -$0-

Gil and Karen had no mortgage payment to make and wished to retire. However, neither had invested in a long-term-care insurance policy, and their funds for the future were limited. They were concerned they might not qualify for homeowner insurance - and about the cost of a policy and the financial strength of any company that would offer coverage.

The Solution:

They took out a reverse mortgage with the Line of Credit option. The loan provided an initial LOC of $323,000. It was insured by FHA and would grow, compounded monthly, at the same rate as the rate of interest on the loan. They now have a growing source of money they can use if either faces a long-term-care issue or unexpected emergency


  • Linda C, Age 74

Home Value: $630,000

Mortgage Balance: $377,000

Linda, recently widowed, wanted a home more suited to her needs. Her current home was too costly for her financial situation and too difficult to maintain; further, it had too many stairs for her physical condition

The Solution:

Linda used a reverse mortgage to purchase a new home that better met her needs and budget. The Reverse Mortgage provided 50% of the $600,000 purchase price of the new home. As a result, Linda had the option to save for unexpected future events or invest the $300,000 of the equity she earned from selling her existing home. With a reverse mortgage on the new home Linda had no monthly mortgage payments. Two years later, Linda refinanced the reverse mortgage (since there are NO PREPAYMENT PENALTIES with a new reverse mortgage) and captured additional tax-free cash.

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NMLS #1044434
DRE # 01270429

Equal Housing Lender


Contact Us

James Stanko - Lineage Lending
16950 Via de Santa Fe
Ste. 102
San Diego, CA 92067

(858) 922-4766

This material is not from HUD or FHA and not approved by HUD or a government agency. Borrower is responsible for property taxes, homeowner’s insurance and property maintenance. Equal Housing Opportunity. Rates, Program, Fees, and Guidelines are subject to change without notice. Restrictions apply. Not a commitment to lend. Not all will qualify.