Disclosures

What the program is

The Family Office Mortgage is a privately offered program. It coordinates three things that already exist: a jumbo home mortgage, a separately funded indexed universal life insurance policy, and a bank loan that finances part of that policy’s premiums.

The name says who the structure is for. It is the home-buying structure a family office would use, opened to households that qualify.

What it is not

• It is not a lender. It does not make, fund or service mortgages, and it does not quote rates.
• It is not a bank. It does not finance insurance premiums.
• It is not an insurance company. It does not issue or underwrite any policy, and it stands behind none.
• It is not a family office, and it does not require one.
• It is not a government program. No public agency sponsors or endorses it.

Who provides the mortgage, the insurance and the financing

Mortgages are made by third-party lenders: your own, or one we introduce. Every loan is subject to that lender’s approval, underwriting and terms.

Insurance policies are issued by third-party insurance carriers, and are subject to the carrier’s medical and financial underwriting of the person to be insured. Premium financing is provided by third-party banks, and is subject to their credit approval and collateral requirements.

No lender, carrier or bank is named on this site. Each is identified for a specific case, and none sponsors or endorses the program. Any of them can decline, or offer terms that differ from those assumed here.

The figures are illustrations

Every figure on this site is an illustration produced from stated assumptions. None is a quote, an offer or a prediction.

• The reference case is a $4,000,000 home with 20% down, a $3,200,000 mortgage and a $1,200,000 policy contribution.
• The mortgage rate of 6.1% is an assumption, applied equally to the program and to the traditional mortgage beside it. It is not a rate offer.
• The mortgage figures are calculated from those inputs.
• Projected policy cash of $370,000 a year in years 16 through 62, and the remaining death benefit of $2,600,000, are quoted figures. They are not derived by our model, and no carrier illustration for a specific insured stands behind them. The calculator scales them in proportion to the policy contribution.
• Projected policy cash and death benefits are not guaranteed. They depend on the specific policy, its charges, how it is credited, the financing terms and the insured.

A comparison prepared for you is also an illustration, until it rests on a carrier’s illustration, a lender’s term sheet and a bank’s term sheet for your own case.

What the model leaves out

The model compares household cash flows. It does not include:

• property taxes, home insurance or maintenance;
• closing costs or advisory fees;
• tax effects of any kind;
• home appreciation, or any return on money kept or saved;
• the time value of money, so all amounts are nominal;
• the policy’s own values, charges and loan balances;
• the premium-finance loan’s advances, interest and collateral;
• any further premiums, financing interest or bank repayment paid from your own cash. The reference case assumes there are none. That is an assumption, not a term of any contract.

Costs and limits to keep in view

• The program needs more capital up front: $2,000,000 against $800,000 in the reference case. Half the purchase price is committed, 20% as the down payment and 30% to the policy. The price of the home is not reduced.
• The early payment is lower because it is interest only. Principal is not reduced in years 1 to 15, and $3,200,000 is still owed at the end of year 15.
• From year 16 the scheduled payment is higher than a traditional payment: $27,176.61 a month against $19,391.83. The policy is projected to pay it. The mortgage runs 30 years.
• If policy cash comes in lower, you cover the shortfall. At $300,000 a year the gap is $2,176.61 a month.
• Total mortgage payments under the program are $838,729.36 higher than on a traditional loan at the same rate.
• Cumulative cash does not turn positive until the end of year 42 in the reference case.
• Projected policy cash does not continue to heirs after the insured dies. The policy pays a death claim instead, net of any loans and lenders’ claims.

Three debts, kept separate

The structure involves three debts: the mortgage, the bank’s premium-finance loan, and loans against the policy itself. Each has its own lender, terms and security. Repaying one does not mean the others are gone.

No tax, legal or investment advice

Nothing on this site is tax, legal, accounting, insurance or investment advice, and nothing here takes account of your circumstances. The tax treatment of life insurance, policy loans and mortgage interest depends on the facts of each case and can change. Review any proposal with your own CPA and attorney before you act on it.

The principals

The program is led by the people named here.

• Kent Chesley, real estate advisory. Berkshire Hathaway HomeServices California Properties. California DRE #02283898. 30812 South Coast Hwy, Laguna Beach, CA 92651.
• Paul Finestone, policy design and financing. Finestone Virtual Family Office. 15335 Morrison St, Suite 367, Sherman Oaks, CA 91403.

Imagery

The photographs and film on this site are illustrative. They do not show homes bought through the program, and they do not show clients.

Stories

The stories on this site are illustrations unless one is marked otherwise. Each describes a household of a kind the program is designed for, with every figure produced by the model. They are not client results.

Last updated October 8, 2026.