Montana senior citizens are facing increasing challenges as property taxes and the cost of living continue to rise.
A new tool has been introduced by the Montana Department of Commerce, aimed at assisting seniors in staying in their homes and utilizing their equity for essential expenses.
I had a conversation with Cheryl Cohen, Division Administrator at the Montana Department of Commerce on Thursday regarding the Reverse Annuity Mortgage Program.
“Yesterday, the Montana Department of Commerce made an announcement regarding the Reverse Annuity Mortgage Program, which is administered by the Montana Board of Housing,” Cohen stated. There is over $2 million in funding available for senior homeowners who meet the income eligibility requirements. A Reverse Annuity Mortgage (RAM) loan offers a helpful solution for borrowers who are 68 years old or older. It provides them with a regular stream of money, either annually or monthly, to assist in covering any additional expenses they may have.
State Department of Commerce offers a Reverse Annuity Mortgage Program
Cohen recognized that while there are scams associated with certain reverse annuity mortgage programs, this particular program administered through the Department of Commerce is not one of them.
“I understand that when people hear the term ‘reverse annuity mortgage,’ they may have concerns about potential scams,” she acknowledged. However, our program is designed to ensure that the homeowner remains on the title. Furthermore, there are no excessively high interest rates or unfair upfront fees. It’s a reliable program that assists senior homeowners in maintaining their comfort and independence during their retirement.
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Some Income Limits Based on Household Size
Cohen provided a comprehensive breakdown of the financial requirements necessary to qualify for the program. “In order to qualify for the RAM program, there are income limits that are determined by the size of your household,” she explained. Currently, the income limit for a single-person household is $30,120 per year. According to recent data, the annual income for a two-person household amounts to slightly more than $40,000.
In addition, homeowners are expected to actively engage in our homeowner counseling program. It is important to ensure that homeowners who are enrolling in the RAM program are fully informed about the program’s requirements and understand what it involves. Cohen reassured a worried family about their loved one’s application for the RAM program.
Cohen Put One Family at Ease over the RAM Program
“One of the family members of our borrowers expressed their initial upset upon learning that their father intended to apply,” she shared. “There were concerns about the legitimacy of the situation and fears of being deceived.” After observing its impact over the course of two years, they began receiving monthly payments that allowed her father to maintain his home independently and with dignity. She was pleasantly surprised to discover that her initial assumption had been completely incorrect.
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