Reverse Mortgage Specialist | Helping Homeowners 55+ Unlock Retirement Income | Trusted Advisor to Financial & Legal Pros | Speaker & Educator

Dorothy* was happy and secure and loving her busy married life in Marin County. She married her college sweetheart David and they were still a perfect match 46 years later. They raised four children together and enjoyed all the same things: playing tennis, traveling to Europe twice a year and having dinner parties with friends. She was already making plans for their golden wedding anniversary party.

So Dorothy was devastated when her husband came home from golf one day and asked for a divorce. He had met someone new and wanted to move out of the country.

Suddenly, she was single at age 72. More than anything, Dorothy wanted to stay in the home where she raised her children, and keep living in her community with her neighbors, church and friends.

But how? She hadn’t worked in decades and she didn’t have enough income to cover her living expenses, and pay for property taxes, insurance and maintenance on the aging house.

Exploring the New Reverse Mortgages

Dorothy’s financial advisor suggested she look into options with reverse mortgages. He explained that the old “reverse annuity mortgages” of the 1980s weren’t really mortgages at all. They were an insurance product that consisted of a high-interest loan, a forced annuity purchase — and the insurance company lender got 50 percent of the borrower’s home appreciation! Those aren’t around any more.

Today’s new FHA-backed reverse mortgages are flexible options designed to help older homeowners like Dorothy have a secure retirement by using some of the equity from her home for living and healthcare expenses.

Dorothy’s home appraised at $1.2 million. I talked to Dorothy about all the different options and she decided to go with a Jumbo Homesafe mortgage, a proprietary mortgage from my company, Retirement Funding Solutions. It’s designed for homes worth $850,000 or more and she closed at a rate of 5.99%.

She took out $444,000 in equity, and used $400,000 to buy out her husband’s half of the home. She used the remaining $44,000 to pay for needed home repairs and add to her nest egg.

She got to keep her home — and her low property tax rate under Proposition 13.

And Dorothy doesn’t have to make any monthly mortgage payments,** as long as she stays in her home and pays all the property tax, insurance and maintenance costs. If she decides to sell her home in 10 years at age 82, the debt will be $820,000. On the up side, even if her home appreciates just 4 percent a year, her net equity will be $200,000 higher than it was when she took out her original Jumbo Homesafe loan.

And her half of the couple’s investment portfolio goes to maintaining the lifestyle she had before her divorce. She had so much extra space at home, a friend moved in with her, and that rental income pays for expenses like homeowners insurance and utilities. These days, Dorothy is creating her new life and feeling like her financial future is golden, all on her own.

To hear more of my client success stories and learn about using your home equity for retirement, call me today at 415-259-4979 or email [email protected]  NMLS #246222

*Not her real name.

**Reverse mortgage borrower must occupy home as primary residence and remain current on property taxes, homeowner’s insurance, the costs of home maintenance, and any HOA fees.  

Mary Jo Lafaye, NMLS ID 246222. Mutual of Omaha Mortgage, Inc. dba Mutual of Omaha Reverse Mortgage, NMLS ID 1025894. 3131 Camino Del Rio N 1100, San Diego, CA 92108. Licensed by the Department of Financial Protection & Innovation under the California Residential Mortgage Lending Act, License 4131356. These materials are not from HUD or FHA and the document was not approved by HUD, FHA or any Government Agency. Subject to credit approval. For licensing information, go to: www.nmlsconsumeraccess.org

Equal Housing Lender

Reverse Mortgage Specialist | Helping Homeowners 55+ Unlock Retirement Income | Trusted Advisor to Financial & Legal Pros | Speaker & Educator

In Marin County’s high-priced real estate market, many homeowners over age 60 are sitting on a goldmine of home equity—but feel stuck when it comes to Making a Move. As their Trusted Real Estate Advisor, you’re in a unique position to guide them through the transition from a larger family home to a new one-level, perhaps walkable, and more manageable home. 

The Challenge: Retiring clients don’t want to take on a new mortgage payment, and they certainly do not want to take money from their taxable retirement accounts. 

The Industry Secret: There is little know tool that can help your mature buyers get the home they really want and improve their financial picture for decades to come. Enter the downsizing tool extraordinaire, the often overlooked Home Equity Conversion Mortgage (HECM) for Purchase, otherwise known as the

FHA’s Lifestyle Loan. 

What is the Lifestyle Loan 

The Lifestyle Loan (LL) is a type of FHA-insured payment-deferred mortgage that allows homeowners age 62+ to purchase a new home using a combination of a down payment (from the proceeds of the home sell for them) along with a non-recourse retirement-focused loan, which requires no monthly mortgage payments* (as long as they live in the home and meet basic requirements). The Lifestyle Loan can be a game-changer for clients who want to downsize, stay in California, and retain financial flexibility and liquidity. 

The Marin Market Reality, “If I sell, where will I go?” 

In Marin, where the median home price far exceeds $1 million, many older homeowners have considerable untapped equity—and they love the idea of moving to something with a smaller yard, newer amenities, and even located closer to their favorite shops and cafe’s for a more mobility-focused lifestyle.

Yet, once they sell, pay off a large remaining mortgage balance, and possibly incur federal and state capital gain taxes; they may not have quite enough cash to get the next house that inspires them to Make a Move. 

Once Boomers and Seniors learn about this federally-insured and non-recourse Lifestyle Loan, with Minimal Income and Credit Requirements, they can see a path toward getting their dream home without breaking the bank. 

If you are talking to potential sellers and hearing these concerns, you should think of the Lifestyle Loan as the answer: 

– Where will I go? Will I be able to stay local, in Marin, or at least nearby? 

– Will I be able to afford a new home without tapping my retirement savings? 

– What if I want to preserve cash flow and still live comfortably? 

– Can I age in place and enjoy the proceeds from selling my current home?

As a trusted Real Estate Advisor, assembling your team to help address these fears and offer creative solutions that align with your clients’ lifestyle goals is crucial to increasing your sales. 

Here is a Real-Life Scenario 

Imagine this: You help your 70-year-old clients, Jim and Velma, sell their long-time Mill Valley home for $2.3M. 

– They pay off their mortgage and HELOC of $1.1M. 

– Sale fees and capital gain tax = 250k. 

– Total cash in hand after sale is $850,000. 

They want to stay as close to family and friends as possible, and they need a garage for Jim’s Big Band to practice every weekend. 

They set out on their home shopping adventure and find just the right one-level home, recently remodeled and walkable to the Farmer’s Market, YAY!!! 

Oops, the price tag is $1.2M and they do not want a mortgage payment to ruin their retirement cash flow. Their financial advisors recommends NOT taking money from their investment accounts to supplement their cash. NOW WHAT? 

Enter the Lifestyle Loan: Jim and Velma can put down ~$800K (typically 40–60% of the purchase price, depending on age and rates), and use the FHA Lifestyle Loan to finance the rest—no monthly mortgage payments required.

Jim and Velma have money left over to add some solar and buy a new Prius. Life is good! 

Why This Matters for You 

Helping clients access this kind of financing solution: 

– Creates new purchase opportunities in a competitive market 

– Builds trust and long-term referrals 

– Opens the door to double-sided transactions (sell + buy) 

– Sets you apart as an innovative and compassionate advisor 

Partner with a proven Lifestyle Loan Specialist 

As a Marin-based Home Equity Retirement Specialist with 20+ years of experience, I collaborate with Real Estate Professionals to educate and support buyers throughout the Downsizing process. I’m here to: 

– Help pre-qualify your clients for H4P financing. We fully underwrite the borrowers before they start making offers. This enables us to close in 30 days. 

– Join you in client meetings to answer questions 

– Host co-branded educational workshops or webinars 

Let’s work together to create more opportunities for our clients to live securely, comfortably, and with confidence. Reach out to find a time to talk. 

Mary Jo Lafaye, Marin County Home Equity Retirement Specialist NMLS #246222 

www.maryjolafaye.com | [email protected] | (415) 259-4979 

*Reverse mortgage borrower must occupy home as primary residence and remain current on property taxes, homeowner’s insurance, the costs of home maintenance, and any HOA fees.  

Mary Jo Lafaye, NMLS ID 246222. Mutual of Omaha Mortgage, Inc. dba Mutual of Omaha Reverse Mortgage, NMLS ID 1025894. 3131 Camino Del Rio N 1100, San Diego, CA 92108. Licensed by the Department of Financial Protection & Innovation under the California Residential Mortgage Lending Act, License 4131356. These materials are not from HUD or FHA and the document was not approved by HUD, FHA or any Government Agency. Subject to credit approval. For licensing information, go to: www.nmlsconsumeraccess.org

Equal Housing Lender

Reverse Mortgage Specialist | Helping Homeowners 55+ Unlock Retirement Income | Trusted Advisor to Financial & Legal Pros | Speaker & Educator

The 6.7% Mortgage Rate Problem

Today’s average 30-year mortgage rate hovers around 6.72%, a stark contrast to the sub‑3% rates many seniors locked in years ago. As coastal homeowners age, this “rate lock” can trap them in a home that no longer fits their needs—or their retirement plan.

Already, 31% of homeowners aged 65 to 79 still carry mortgages—a sharp increase from just 24% in 1989. With rising costs, many feel stuck.

Why Downsizing Feels Risky Now

Downsizing used to be a reliable path to financial freedom. Sell your $2M home, buy a $1.5M house, pocket the equity—and simplify life.

But swapping a 2–3% mortgage for a 6–7% one changes the math—and the emotions.

That’s why financial experts now caution: look beyond the mortgage. Consider taxes, insurance, maintenance, HOA fees—and even harder-to-quantify costs like moving stress.

Many clients think, “Maybe I’ll just stay put.” But that often means sacrificing the lifestyle they built—and deserve.

Your Better Path: The Lifestyle Home Loan

That’s where the FHA-insured “HECM for Purchase”, aka the Lifestyle Home Loan, comes in.

Key benefits for clients Age 55+ in Marin and beyond:

– No new monthly mortgage payments*, free up cash for other needs and wants

– Keep your housing wealth working for you. Buffer market volatility for long term growth

– Avoid tapping retirement savings when values are in decline; use your FHA credit line while stocks recover

– Align with desired lifestyle—newer, low maintenance home, simpler life, local community

MJ’s Smart-Start 3-Step Process:

– Full Housing Cost Breakdown We evaluate current mortgage, property expenses, and the emotional costs of staying vs. making a move.

– Creative Downsize Blueprint We structure a combined home-equity + reverse-mortgage purchase—so clients can right-size without using all their sale proceeds, or taking on a monthly loan obligation.

– Guided Execution With HUD counseling, Realtor coordination, and pre-underwriting, we move fast—typically closing in 30 days or less.

Why This Matters—Now:

Protect your retirement Nest Egg from monthly payments* that could derail financial plans and future cash flow

Avoid a mortgage maze—keep more money in your pocket for fun and care needs

Live fully: right-sized homes, new hobbies, and secure years ahead

Ready to Help Your Clients Rewrite Their Story?

If your seniors are saying:

“I’d love to downsize, but where will I go? Can I afford the home I really want?”

“I don’t want to use all of my sale proceeds or tap savings just to move.”

“I want local, walkable, low-maintenance living.”

…then let’s talk. This tool could be life-changing—for them, and for your business.

(415) 259‑4979 | [email protected] | maryjolafaye.com

*Reverse mortgage borrower must occupy home as primary residence and remain current on property taxes, homeowner’s insurance, the costs of home maintenance, and any HOA fees.  

Mary Jo Lafaye, NMLS ID 246222. Mutual of Omaha Mortgage, Inc. dba Mutual of Omaha Reverse Mortgage, NMLS ID 1025894. 3131 Camino Del Rio N 1100, San Diego, CA 92108. Licensed by the Department of Financial Protection & Innovation under the California Residential Mortgage Lending Act, License 4131356. These materials are not from HUD or FHA and the document was not approved by HUD, FHA or any Government Agency. Subject to credit approval. For licensing information, go to: www.nmlsconsumeraccess.org

Equal Housing Lender

Reverse Mortgage Specialist | Helping Homeowners 55+ Unlock Retirement Income | Trusted Advisor to Financial & Legal Pros | Speaker & Educator

Financial Advisors, the FHA-insured Home Conversion Mortgage (HECM) for Purchase can help your clients gain financial footing.

As a financial advisor, you’ve likely seen firsthand how disruptive divorce can be—especially later in life. For older adults nearing or in retirement, a split can upend decades of financial planning, impact housing stability, and shrink the runway for recovery.

But here’s the good news: there’s an underutilized financial planning add-on tool that can help your senior clients reset and regain stability. The FHA’s Home Equity Conversion mortgage (HECM), a government-insured reverse mortgage, enables a Boomer or Senior to refinance a home to buy out a departing spouse’s interest (or buy a new home) all without the cash flow drag of monthly mortgage payments.

Trusted Advisors who understand the dynamics of the HECM Refinance, and the HECM for Purchase (sometimes referred to as the Lifestyle Loan) can turn a divorce into a strategic planning opportunity.

The HECM as a refinance tool is an FHA-insured loan that enables eligible adults aged 62+ (spouses who want to keep the marital home) to access the funds they need to buyout the departing spouse. This unique, non-recourse home financing tool provides the divorcee with non-taxable* loan proceeds — without taking on a new monthly mortgage payment, and without giving up assets held in securities or other resources they will need to rely on throughout their golden years.

What Is HECM for Purchase?

The Home Equity Conversion Mortgage (HECM) for Purchase enables the departing spouse to obtain home financing, secured by their new home, to buy a new primary residence. The new home is purchased using the HECM reverse mortgage proceeds and a down payment—typically from the sale of a previous home, or with proceeds from an equity buyout by their former spouse.

The major advantages (as with the HECM Refinance Loan) are: minimal income and credit requirements, and no monthly mortgage payments, which can greatly improve post-divorce cash flow in retirement.

Yet despite these HECM reverse mortgage benefits, there is a severe lack of awareness—especially among the professionals that seniors turn to in times of crisis: attorneys, mediators, and yes—financial advisors.

Why Senior Divorce Requires a New Planning Mindset

The so-called “Silver Divorce” trend is on the rise. AARP reports that divorce among Boomers has tripled since 1990, and Bowling Green State University found that one in eight U.S. divorce now involves someone age 65 or older. One in four includes someone in their fifties.

Dividing assets like real estate becomes more complicated in retirement, when both spouses are on fixed incomes and cash flow is critical. Many older divorcees also face:

– Reduced retirement savings

– Limited borrowing capacity

– Emotional stress over losing the family home

– Fewer years to recover financially

This is where HECM for Purchase shines—as a strategic tool for helping each spouse secure affordable housing and financial stability without draining retirement funds.

Case in Point: A Better Path After Divorce

Imagine a couple in their late 60s divorcing after decades of marriage. The marital home is sold, but only one spouse qualifies for a conventional mortgage—and neither wants to rent.

With HECM for Purchase each spouse can use their share of home sale proceeds as a down payment, and the HECM for Purchase pays the balance of the purchase price.

– Purchase a lower maintenance, right-sized home more suited to single living

– Eliminate monthly mortgage payments**

– Preserve cash flow for healthcare, travel, or simply peace of mind

In many cases, HECM for Purchase can safeguard against post-divorce housing instability—a growing concern among older women who initiate a majority of later-life divorces.

What This Means for Financial Advisors

If you serve pre-retirees or retirees, you’re already working with clients who may be affected by late-life divorce. Proactively introducing the HECM for Purchase Lifestyle Loan as part of your housing or retirement income strategy can:

– Help clients preserve liquidity and reduce fixed expenses 

– Position you as a trusted, solution-oriented advisor

– Open doors for collaboration with divorce attorneys and real estate pros 

– Differentiate your practice with a niche service offering

Build Your Referral Network

Attorneys and mediators are often the first to hear about divorce. But they’re not housing experts—and many still view reverse mortgages through an outdated lens.

As a financial advisor, you have an opportunity to:

– Bridge the knowledge gap

– Collaborate with reverse mortgage specialists

– Provide holistic support to divorcing clients

– Grow your practice through a valuable referral network

Final Thoughts

The intersection of Silver Divorce and financial planning is an emerging frontier—and the FHA-insured HECM for Purchase is one of the most powerful, underused tools available to financial advisors today.

Divorce is hard enough. Helping your clients maintain homeownership and retirement security is not just smart planning—it’s compassionate, comprehensive care.

Want to learn how HECM for purchase can support your clients as they navigate one of life’s biggest challenges—as well as providing new referral opportunities?

Let’s connect for a free consultation. Email me at [email protected] or send me a LinkedIn note.

*Consult a tax advisor for personalized tax guidance.

**Reverse mortgage borrower must occupy home as primary residence and remain current on property taxes, homeowner’s insurance, the costs of home maintenance, and any HOA fees.  

Mary Jo Lafaye, NMLS ID 246222. Mutual of Omaha Mortgage, Inc. dba Mutual of Omaha Reverse Mortgage, NMLS ID 1025894. 3131 Camino Del Rio N 1100, San Diego, CA 92108. Licensed by the Department of Financial Protection & Innovation under the California Residential Mortgage Lending Act, License 4131356. These materials are not from HUD or FHA and the document was not approved by HUD, FHA or any Government Agency. Subject to credit approval. For licensing information, go to: www.nmlsconsumeraccess.org

Equal Housing Lender

Mary Jo Lafaye 

Reverse Mortgage Specialist | Helping Homeowners 55+ Unlock Retirement Income | Trusted Advisor to Financial & Legal Pros | Speaker & Educator

One of the most rewarding parts of my work as a Home Equity Retirement Specialist here in Marin is helping clients uncover what’s possible in retirement—not just financially, but personally.

A recent client reminded me just how life-changing the right strategy can be.

My client is a retired architect in her 70s. She has a beautiful home in Marin with a charming Accessory Dwelling Unit (ADU)/attached cottage she once built for guests. But she was starting to feel stretched. Inflation, travel dreams, and long-term financial stability were all on her mind.

When we met, I introduced her to a powerful tool she hadn’t considered: the Secure Equity proprietary “jumbo” reverse mortgage. This newer, more flexible option offers predictable terms and can unlock significant, tax-free* cash from your home equity—without requiring a move. The Secure Equity can be used as a fixed-rate loan, or a flexible credit line to fund retirement.

Here’s what my client did:

-She moved into her fully renovated ADU—downsizing without leaving home

-She rented out her main house, generating steady monthly income

-And she used the proceeds from her reverse mortgage to fund her dream of living part of the year in Italy where she grew up and still has family and lifelong friends

This spring, I received a photo from her sipping espresso in Florence, with a note that said:

“Thank you, Mary Jo. My house didn’t just become a source of income—it became a passport to the life and dreams I thought I’d have to give up.”

This is exactly why I do what I do.

If you’re 60+ and wondering how to retire on your own terms—or help your clients do the same—I’d love to explore whether this strategy might be a fit.

Let’s talk about how your home equity can support a more secure and joyful future.

—

Mary Jo Lafaye, NMLS #246222

Marin County Reverse Mortgage & Retirement Specialist

Originating loans in 48 states

maryjolafaye.com

415-259-4979

*Consult your tax advisor.

Mary Jo Lafaye, NMLS ID 246222. Mutual of Omaha Mortgage, Inc. dba Mutual of Omaha Reverse Mortgage, NMLS ID 1025894. 3131 Camino Del Rio N 1100, San Diego, CA 92108. Licensed by the Department of Financial Protection & Innovation under the California Residential Mortgage Lending Act, License 4131356. These materials are not from HUD or FHA and the document was not approved by HUD, FHA or any Government Agency. Subject to credit approval. For licensing information, go to: www.nmlsconsumeraccess.org

Equal Housing Lender

Big News for Homeowners 62+
The FHA has increased the Home Equity Conversion Mortgage (HECM) lending limit to $1,209,750 — the highest in history. This is a big deal for seniors in high-cost markets like Marin, San Francisco, and Sonoma, where home values often exceed $1M.

What Is the HECM Lending Limit?
It’s the maximum home value the FHA will use when calculating how much you can borrow with a federally insured reverse mortgage. Even if your home is worth more, this limit caps the calculation.

Why it matters in 2025: – More tax-free* equity access for higher-value homes.
– Expanded options for debt payoff, retirement income, or relocation.

Who Benefits Most – Seniors in high-cost housing markets. – Homeowners refinancing into a reverse mortgage to eliminate monthly payments. – Buyers aged 62+ using a HECM for Purchase to downsize or relocate without a new mortgage payment.

Strategic Retirement Uses – Supplement income without selling investments. – Fund home renovations or accessibility upgrades. – Cover healthcare or long-term care costs. – Create a “buffer asset” to protect portfolios in volatile markets.

Real-World Example A recent Marin client: – Paid off her existing mortgage. – Funded safety upgrades for aging in place. – Opened a substantial line of credit for future care needs. – Kept her investment portfolio fully intact.

The Bottom Line The new limit gives more homeowners the chance to make their home equity work for them. Whether you’re looking to increase cash flow, protect savings, or move into a home that fits your lifestyle, this could be your year.

Curious what the numbers look like for your home? I’d be happy to run a personalized calculation.

Mary Jo Lafaye
Reverse Mortgage & Retirement Specialist
Mutual of Omaha Mortgage
415‑259‑4979 | [email protected]
www.maryjolafaye.com

*Consult a tax professional

Mary Jo Lafaye, NMLS ID 246222. Mutual of Omaha Mortgage, Inc. dba Mutual of Omaha Reverse Mortgage, NMLS ID 1025894. 3131 Camino Del Rio N 1100, San Diego, CA 92108. Licensed by the Department of Financial Protection & Innovation under the California Residential Mortgage Lending Act, License 4131356. These materials are not from HUD or FHA and the document was not approved by HUD, FHA or any Government Agency. Subject to credit approval. For licensing information, go to: www.nmlsconsumeraccess.org

Equal Housing Lender

“Where can I afford to go?”

It’s the #1 question I hear from Marin homeowners over 60.

Many have built up incredible equity — but downsizing still feels risky. The thought of taking on a new mortgage in retirement, or draining investments, stops them from making the move they desire.

Real Story:
I recently worked with Donald and Sarah in Mill Valley. They sold their $2.3M family home, paid off their mortgage and HELOC, and bought a single-level, walk-to-town home for $1.5M.

The result?

No monthly mortgage payments*

Extra cash left over to add solar, buy a new Prius, travel, and truly enjoy retirement

Peace of mind knowing they used an FHA-insured Lifestyle Home Loan (HECM for Purchase) designed exactly for this stage of life

-Minimal income + credit requirements
-Buy the right home — not just the one that fits a cash-only budget
-Stay in Marin, close to family and community

If you or someone you love is considering downsizing (or right-sizing), let’s talk. I’ll walk you through possibilities so you can move with confidence.

(415) 259-4979 | [email protected] | maryjolafaye.com

*Reverse mortgage borrower must occupy home as primary residence and remain current on property taxes, homeowner’s insurance, the costs of home maintenance, and any HOA fees.  

Mary Jo Lafaye, NMLS ID 246222. Mutual of Omaha Mortgage, Inc. dba Mutual of Omaha Reverse Mortgage, NMLS ID 1025894. 3131 Camino Del Rio N 1100, San Diego, CA 92108. Licensed by the Department of Financial Protection & Innovation under the California Residential Mortgage Lending Act, License 4131356. These materials are not from HUD or FHA and the document was not approved by HUD, FHA or any Government Agency. Subject to credit approval. For licensing information, go to: www.nmlsconsumeraccess.org

Equal Housing Lender