Reverse Annuity Mortgage (RAM) programs are loans which allow homeowners, who need extra money, to tap the equity in their homes.  Unlike regular home-equity loans, there is no need for the borrower to make monthly payments to the lender.  Repayment may either be made on a pre-determined date or the date when the homeowner ceases to occupy the home.  The lender generally makes monthly payments to the borrower, although lump sum loans and lines of credit can sometimes also be arranged (and the borrower will still not need to make monthly payments).

   RAM involves important decisions and can be quite complicated. It is important that homeowners consider their plans carefully and get appropriate advice from an attorney, accountant or other, reliable professional source before making decisions.  

   In cooperation with the Connecticut Department of Social Services, Aging Services Division, the Connecticut Housing Finance Authority [CHFA] has set aside funds to make such RAM loans.  Note that borrowers for CHFA’s loan must be seventy [70] years or older and at least one borrower must have costs associated with long-term care.  “Long -Term Care” describes a wide range of supportive services provided to individuals who have lost some or all capacity to function on their own due to chronic illness, and are expected to require such services for an extended period. 

   You can link to the CHFA website at www.chfa.org/Elderly/elderly.asp  for more information on properties and borrowers that are eligible or you can call directly Single Family Underwriting at (860) 571-3502.