HELENA, Mont. – The Montana Department of Commerce (Commerce) announced today that more than $2 million of loan funding is available for income-eligible senior homeowners to receive extra monthly income while being able to stay in their own homes. The low-interest loans are provided through a Reverse Annuity Mortgage (RAM) program offered by the Montana Board of Housing, which is administratively attached to Commerce.
"Many senior citizens in Montana own their own homes and have little or no remaining mortgage debt. Those who live on a fixed income might find they could benefit from an additional income source from the equity in their homes," said Paul Green, Director of the Montana Department of Commerce. "Reverse Annuity Mortgage loans allow eligible senior homeowners the financial flexibility to stay in their own homes and continue life on their terms."
To be eligible for a RAM loan, borrowers must be 68 years old or older and be the owner and occupant of a single-family dwelling, located in Montana, that is unencumbered by any prior mortgage, lien or pledge. The borrower's annual family income must not exceed $30,120 for a one-person household; $40,880 for a two-person household; and $51,640 for a three-person household.
Loan amounts range from a minimum of $15,000 to a maximum of $150,000. The maximum loan amount is determined based on 80 percent of the FHA-determined property value.
The Montana Board of Housing with Commerce began issuing RAM loans in 1989 after receiving authority from the State Legislature that same year. Since that time, 241 RAM loans have been issued totaling $15,477,067 in original principal; $11,897,555 has been paid back to date. Of currently active RAM loans, the average principal amount loaned is $107,138; the average cash advance received is $36,395; and the average monthly payment to RAM participants is around $741.
Potential borrowers must attend a RAM program counseling session in order to apply. To learn more, visit housing.mt.gov or call 406-841-2840.
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