Ask the Expert
The Reverse Mortgage Times is proud to announce that Brian Cooper, a nationally recognized reverse mortgage expert, has agreed to be the moderator of “Ask the Expert”. Brian has been featured on numerous radio and television talk shows as a reverse mortgage expert/advisor.
BRIAN COOPER
THE FORUM
Fred S. (Wisconsin)
Question:
Hi Brian: I already have a mortgage on my home. Can I still qualify for a Reverse Mortgage?
Answer from Brian Cooper: Thanks for your question Fred. Yes…You can still qualify. You can use the Reverse Mortgage to pay off the balance of your current mortgage or equity loan. By doing so, you will “free up” the money you used to use for monthly payments on your old loan.
Alice R. (Baltimore, MD)
Question: I have poor credit. Can I still get approved?
Answer from Brian Cooper: The Department of Housing and Urban Development designed the Reverse Mortgage to be based on age and your home. There are no credit requirements to qualify for a Reverse Mortgage.
Warren K. (Naples, FL)
Question: What about income requirements? Don’t I have to meet certain debt to income ratios?
Answer from Brian Cooper: There are no income requirements to qualify for a Reverse Mortgage. If you are 62 or older and you own a home- you qualify.
Ken Y.
Question: Do I still own my home if I do a reverse mortgage?
Answer from Brian Cooper: Good question Ken. This is perhaps the biggest misunderstanding relating to Reverse Mortgages. A Reverse Mortgage is only a lien on your home…exactly like a “forward” mortgage. You still own your home. When you leave your home, the loan balance is repaid in full with the remaining equity passing to you or your heirs…exactly like a “forward” mortgage.
Ken Y.
Question: Sorry Brian…Ken again with one more question. I understand now that I still will own my home…but won’t I use up all of the equity in my home? Will there be anything left for my heirs?
Answer from Brian Cooper: Please Ken…no apologies. This forum was created so you can freely ask any questions you want. I want everybody to truly understand everything about a Reverse Mortgage.
Because you still own your home, and because it should continue to appreciate in value, it is very difficult to use up all of your equity. In fact, in many cases depending on how much money you use, the amount of equity you have may increase.
George A.
Question: Wouldn’t it be better to just sell the home?
Answer from Brian Cooper: If you sell your home, you lose one of the largest and most secure investments you probably have. You would lose 6%-8% of your home’s equity in sales costs alone. After selling, you would most likely have to pay rent or some other type of monthly payment that would eat away at your savings. In addition, moving from a home is physically and emotionally difficult. A Reverse Mortgage is a much better option for many.
Tim P. (North Brunswick, NJ)
Question:
My house needs some repairs done on it. Will that stop me from getting a reverse mortgage?
Answer from Brian Cooper: If the repair estimate exceeds 15% of the maximum claim (appraised value or county lending limit – whichever is lower), then the borrower will have to pay the repair fees in excess. A repair set-aside can only be for 15% or lower than the max claim.
