Reverse Mortgage for Purchase, Helping Boomers Move to the City

20090217_092348_MercuryNews Despite the media backlash from the Consumer Reports “investigation”, Silicon Valley’s Mercury News writes about how  a couple recently used the HECM for purchase to buy a home in San Francisco. 

Ann Tubbs and Ehtesham Majid used the new program to help purchase a $625,000 two-bedroom condominium located downtown near the city’s waterfront.  "We like city living. We like to walk around at night and look in windows," said Tubbs, who retired from a 30-year-career at Planned Parenthood. She and her husband moved into their new home in August.

"It’s a great program for people like us. We don’t have any children and want the urban lifestyle," said Majid, a retired software engineer.

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According to the article, the couple drew on an some inheritance money and savings to come up with the 40 percent down payment used to help buy their condo.  "You have to make a significant down payment, twice the amount of a normal down payment," said Tubbs.

"Then you are done,’ added Majid. Of course, there is still the matter of property taxes, homeowners dues and other expenses associated with owning a home.

Reverse mortgages shift gears (Mercury News)