Reverse Annuity Mortgage (RAM)

A RAM is a low-interest rate first mortgage loan that allows low-income elderly homeowners, with long-term care needs, to use the equity in their homes to provide a monthly tax-free cash payment. A lump sum can also be provided at the time of closing. Borrowers receive payments from CHFA each month for either five or ten years, and the loan balance is repaid in one payment after the death of the borrower or when s/he ceases to occupy the property. The amount of the monthly payment received varies based on the equity in the home; CHFA lends up to 70% of the home's value.

Eligible Borrowers
All property owners must be at least 70 years of age to apply for a Reverse Annuity Mortgage. At least one borrower must have a need for long-term health care or supportive services; an independent social service agency must certify the need for long-term care. Household income may not exceed $81,000 per year.

Eligible Properties
Three types of properties are eligible for reverse annuity mortgages: single family homes, condominiums, and planned unit developments.

Contact
Single Family Underwriting (860) 571-3502