Reverse Annuity Mortgage Loan Program Helps Montana Seniors Stay in their Homes
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Economic pressures such as rising inflation can leave vulnerable groups, particularly seniors, feeling the strain. Many Montana seniors own their homes or have minimal remaining mortgage debt. However, they often struggle to cover living expenses due to limited fixed incomes.
The Montana Board of Housing, administratively attached to the Montana Department of Commerce, offers a reverse annuity mortgage that allows senior homeowners to tap into their home equity by taking out a low-interest rate loan. This loan increases their monthly income, enabling them to maintain financial flexibility while remaining in their home. Eligible homeowners can borrow between $15,000 and $150,000.
When a senior takes out a RAM, they use their home as security for the loan. The title of the home remains in the homeowner’s name. Unlike a traditional mortgage, where borrowers make monthly payments, RAM participants receive monthly payments. The loan is repaid when the borrower no longer resides at the home.
While some reverse mortgage programs have been criticized for unfair or deceptive practices, the MBOH’s RAM program supports senior Montana homeowners by not charging additional fees for the administration or servicing of the loan.
An adult child of a recent RAM recipient recently shared, "When I first found out that my father wanted to apply for a reverse mortgage on his home, I was very upset. I thought that it was a scam to cheat senior citizens out of their homes. In spite of my objections and ignorance of the program, my brother helped my father obtain a reverse mortgage on his home. I looked for every possible way to prove that I was right. Over the next two years, I watched as the monthly reverse mortgage income allowed my father to pay his bills, to retain his independence and to maintain his dignity, as my father has always been very proud. He never wanted aid or handouts. This was one time I was glad to be wrong."
Since the MBOH launched the RAM program in 1989, 240 loans have been issued. Subject to Board approval, participants can elect to have a cash advance at closing up to $30,000; the average monthly payment received by the borrower is around $540.
Commerce recently conducted a RAM outreach campaign to spread awareness of the program. This included radio PSAs, an “Aging Horizons” TV interview and a newspaper op-ed. Following this campaign, there was a noticeable uptick in inquiries, according to Julie Hope, a training development specialist for the RAM program.
“More seniors have been asking for information and applications for the RAM program since the ‘Aging Horizons’ airing,” Hope said. “Housing admin staff have been assisting me by sending out applications to seniors who call to inquire or request information.”
Homeowners 68 years or older of a single-family home located in Montana may be eligible for a RAM loan. Attendance at a RAM program counseling session is required to apply. To schedule a counseling session, contact MBOH/Commerce at 1-800-761-6264 or the Aging Services Bureau at the Montana Department of Public Health and Human Services at 1-800-332-2272. Both agencies may also be contacted at Montana Relay 711.
To learn more about the program, visit commerce.mt.gov/housing.
The Montana Board of Housing, administratively attached to the Montana Department of Commerce, offers a reverse annuity mortgage that allows senior homeowners to tap into their home equity by taking out a low-interest rate loan. This loan increases their monthly income, enabling them to maintain financial flexibility while remaining in their home. Eligible homeowners can borrow between $15,000 and $150,000.
When a senior takes out a RAM, they use their home as security for the loan. The title of the home remains in the homeowner’s name. Unlike a traditional mortgage, where borrowers make monthly payments, RAM participants receive monthly payments. The loan is repaid when the borrower no longer resides at the home.
While some reverse mortgage programs have been criticized for unfair or deceptive practices, the MBOH’s RAM program supports senior Montana homeowners by not charging additional fees for the administration or servicing of the loan.
An adult child of a recent RAM recipient recently shared, "When I first found out that my father wanted to apply for a reverse mortgage on his home, I was very upset. I thought that it was a scam to cheat senior citizens out of their homes. In spite of my objections and ignorance of the program, my brother helped my father obtain a reverse mortgage on his home. I looked for every possible way to prove that I was right. Over the next two years, I watched as the monthly reverse mortgage income allowed my father to pay his bills, to retain his independence and to maintain his dignity, as my father has always been very proud. He never wanted aid or handouts. This was one time I was glad to be wrong."
Since the MBOH launched the RAM program in 1989, 240 loans have been issued. Subject to Board approval, participants can elect to have a cash advance at closing up to $30,000; the average monthly payment received by the borrower is around $540.
Commerce recently conducted a RAM outreach campaign to spread awareness of the program. This included radio PSAs, an “Aging Horizons” TV interview and a newspaper op-ed. Following this campaign, there was a noticeable uptick in inquiries, according to Julie Hope, a training development specialist for the RAM program.
“More seniors have been asking for information and applications for the RAM program since the ‘Aging Horizons’ airing,” Hope said. “Housing admin staff have been assisting me by sending out applications to seniors who call to inquire or request information.”
Homeowners 68 years or older of a single-family home located in Montana may be eligible for a RAM loan. Attendance at a RAM program counseling session is required to apply. To schedule a counseling session, contact MBOH/Commerce at 1-800-761-6264 or the Aging Services Bureau at the Montana Department of Public Health and Human Services at 1-800-332-2272. Both agencies may also be contacted at Montana Relay 711.
To learn more about the program, visit commerce.mt.gov/housing.
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