REVERSE ANNUITY MORTGAGE PROGRAM (RAM) - CHFA PROGRAM

MANAGED BY CONN. HOUSING & FINANCE AUTHORITY

WHAT IS CHFA'S RAM PROGRAM?

The following program is summarized from CHFA's website:www.chfa.org/elderly/ram.asp

CHFA's RAM program is a home equity conversion program which provides monthly cash payments to eligible homeowners ages 70+ who have unreimbursed health care expenses because of a chronic illness or condition. (People ages 62-70 can be referred to other programs.) Maximum periods to collect payments are 5 or 10 years; maximum loan amounts vary, depending on the value of the home. Loans can be up to 70% of the appraised value of the home and can be taken as monthly payments or a combination of lump sum payment and monthly payments. Married couples must both meet age, occupancy, and income requirements. Only one spouse needs to meet health care need requirement.

WHO IS ELIGIBLE

• Ages 70+
• Income restrictions
• Occupancy requirements
• Must have chronic condition/illness and have uninsured long term care costs

COST:

Loans are charged an interest rate of 7% and are re-paid upon the death of the borrower or when permanent occupancy ceases

HOW TO APPLY?

CHFA sends applicants to DSS Elderly Services Unit for prescreening

• It is important that homeowners consider their plans carefully and get appropriate advice from an attorney, accountant, or other reliable, professional source before making a decision.
• More information can be obtained by contacting the DSS Aging Services Division in Hartford: (www.ct.gov/agingservices/cwp/view.asp?a=2515&q=313094) DSS counsels elders about home equity conversions and possible alternative programs, and has information on state-approved equity conversion programs.

TO FIND PROVIDERS IN CONNECTICUT'S COMMUNITY RESOURCES DATABASE:
Search by program name: Reverse Annuity Mortgage

SOURCE: Refer Database; DSS Elderly Services Manual; Conn. Housing Finance Authority website
PREPARED BY: 211/pt
CONTENT LAST REVIEWED: June2008