Helping Children Become Homeowners

May 27, 2025

How to Guide Your Clients in Using Home Equity to Help
Their Children Become Homeowners



In San Diego’s County’s tight housing market, many families are exploring creative ways to help the next generation become homeowners. As a Certified Financial Planner®, you're in a powerful position to introduce an often-overlooked strategy: helping clients leverage their home equity to gift a down payment to their children or grandchildren.


One of the growing concerns—especially in affluent Southern California communities—is that adult children are considering moving out of state due to the high cost of housing. These children are often well-established professionals who can afford a mortgage payment, but the real hurdle is
coming up with a massive down payment.

Their parents or should I say Grandparents—are beside themselves, watching the family unit spread across the country. Many of them would gladly move to Alaska just to be near their grandkids.


The Opportunity: Tap Into Housing Wealth Without Sacrificing Retirement


Helping now doesn’t have to come at the expense of your clients’ financial security. If they plan to remain in their homes and want to make an impact today, they can unlock their equity. This strategy allows them to access a portion of their housing wealth as tax-free funds, without selling their home or taking on a monthly mortgage payment. It's a way to make a gift now—the same gift their children or grandchildren would likely inherit later—but without impairing their retirement income.


Case Study: A Living Legacy


Scenario:

Your clients are a retired couple in their early 70s. Their home is valued at $2.5M with a $300K 1at mortgage. Their adult children are renting and unable to compete in the local housing market due to down payment constraints. The couple wants to help but doesn’t want to sell investments or touch their 401(k).


Solution:

You introduce the idea of using their home equity. They are eligible for a $875,000 Reverse Mortgage that will pay off their $300K 1 st mortgage, gift $300K to their children for the down payment on a $1.5M home and still leaves your client with an additional $275K Line of Credit that is irrevocable.


Result:
The children are able to buy their first home and start building equity. The parents feel a deep sense of satisfaction knowing they were able to help—without sacrificing their retirement lifestyle. And most importantly? The grandchildren stay nearby.

There are no Mandatory Principal and Interest Payments as long as they live in the home. They must pay Real Estate Taxes, Homeowners Insurance and Maintain the Property.


Why This Strategy Matters


Helping your clients understand the power of housing wealth opens the door to broader financial planning conversations. It not only addresses the needs of their adult children, but it also strengthens your value as a trusted advisor by offering a practical solution to one of today’s most emotional and financial dilemmas: keeping families together while addressing the cost of homeownership.

Let’s make generational wealth a living gift—not just an inheritance.




Could This Strategy Benefit Your Clients? Let’s Find Out!

Do any of your clients fit this scenario? Retirement in Reverse would be happy to provide a customized, hypothetical scenario to help you assess if this strategy could be a valuable solution. Let’s explore how we can make it work for your clients!



Who would have ever thought you could use a reverse mortgage for this?

Today’s reverse mortgage is no longer the loan of last resort. It’s a flexible financial tool that can be used strategically for:

  • Charitable giving
  • Buy-sell agreements
  • Paying for long-term care or in-home support
  • Funding a business venture
  • Helping Grandkids Fund College Expense
  • Gift down payment to your Kids
  • Any many more….


It’s all about what the money costs. It’s just math.


Retirement In Reverse offers Objective, Competent Advice to help you make informative decisions for your clients.
Furthermore, we have
No Conflict of Interest, as we do not sell Financial Product, nor enter into financial planning engagements. We share your commitment to your clients’ financial stability and quality of life.


September 3, 2025
Physical activity is important at any age, but the biggest benefits of staying active might come in your golden years. Engaging in regular physical activity is a critical component of healthy aging, promoting wellness, functional independence, and an overall better quality of life. Key Benefits of Physical Activity Improved Attitude and Mood Exercise can significantly enhance mental health, reducing symptoms of depression, anxiety, and stress. Physical activity releases endorphins, which act as natural mood lifters, helping to improve your overall outlook on life. Better Sleep Regular exercise helps regulate your sleep patterns, making it easier to fall asleep and stay asleep through the night. Quality sleep is crucial for overall health and well-being, especially as we age. Stress Reduction Physical activity is a great way to manage stress. Exercise reduces levels of the body's stress hormones, such as adrenaline and cortisol. It also stimulates the production of endorphins, chemicals in the brain that are natural painkillers and mood elevators. Enhanced Mental Health Regular physical activity can help manage mental health conditions such as depression and anxiety. Outdoor exercise, in particular, can provide the added benefits of sunlight, which aids in the absorption of calcium and helps prevent depression. Physical Health Benefits Cardiovascular Health Sustained exercise improves cardiovascular function, reduces heart rate, lowers blood pressure, and enhances circulation. This can prevent conditions like myocardial infarction and atherosclerosis, leading to a healthier heart and vascular system. Bone and Muscle Strength Weight-bearing exercises and strength training increase muscle mass and bone density, which is especially important for aging women at risk of osteoporosis. Regular activity can delay or decelerate bone loss, reducing the risk of fractures. Improved Flexibility and Balance Activities such as stretching, bending, and twisting help maintain flexibility and coordination, which are critical for preventing falls and maintaining independence. Weight Management Regular physical activity helps control weight by burning calories and increasing muscle mass. This is crucial for managing and preventing obesity, diabetes, and other chronic conditions. Designing an Effective Exercise Program For physical activity programs to be effective for older adults, they should be multidimensional, combining: Weight Training for Strength Aerobic Exercise for Endurance Calisthenics for Flexibility Despite the clear benefits, only about 71% of adults aged 65 and over participate in leisure-time physical activity, and only one-third achieve the recommended levels. Interventions to encourage a sedentary older adult to initiate physical activity, as well as those to help maintain it, are essential. Incorporating physical activity into daily life not only enhances physical health but also contributes significantly to mental wellness and quality of life. It is never too late to start reaping the benefits of a more active lifestyle. Always consult with a healthcare provider before beginning any new exercise program to ensure it is safe and appropriate for your health conditions. By embracing regular physical activity, older adults can look forward to a more vibrant, independent, and enjoyable life. Find a physical activity that you love doing and do it every day, soon it will become a healthy habit. Have fun:) Author: Kinga Wulczynska-Lauer Disclaimer: Retirement In Reverse is a mortgage company dedicated to serving older adults, financial planners, and wealth managers with a strong focus on education and informed decision-making. While we strive to provide helpful information on a variety of topics, we are not experts in all areas. That’s why we collaborate with a trusted network of professionals—including attorneys, tax advisors, and financial planners—to help connect you with the right expert based on your individual needs. The information provided in this article is for educational and illustrative purposes only. Before making any financial, legal, or lifestyle changes, we strongly recommend consulting with a qualified professional who can review your personal situation. If you are considering Reverse Mortgage, call Ted Lange at 760-753-1568 to learn more.
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