Programs for Senior Citizens

Senior citizens may obtain loans from NWGF to help them make repairs and renovation to their homes to allow them to stay in their homes. These loans are called “aging in place” loans, since the loans helps seniors make needed repairs to be able to live out their years in a familiar place. An NWGF“rehab” specialist is available without charge to help you decide on repairs, choose a contractor and make sure the job is done right. NWGF rehab loans require monthly payments for interest and principal repayment. If you have equity in your home, check with the City of Great Falls for a deferred loan.

Reverse Annuity Mortgages:

The Reverse Annuity Mortgage (RAM) program was implemented by the Montana Board of Housing in October of 1990. Lower income seniors 68 years or older have the ability to borrow the equity in their homes and benefit from the additional income. Loans can be used for a variety of purposes, including home repairs, monthly income and other reasons. NWGF does not offer RAM mortgages, but can assist in the application process to MBOH. NWGF does provide counseling to homeowners interested in RAM mortgages.

Home Equity Conversion Mortgages:

The Home Equity Conversion Mortgage (HECM), available through many lenders, is regulated by the Federal Housing Administration (FHA), which is part of the U.S. Department of Housing and Urban Development (HUD). The FHA tells HECM lenders how much they can lend you, based mainly on your age and your home's value. The HECM program limits your loan costs, and the FHA guarantees that lenders will meet their obligations.

HECM loans generally provide the largest loan advances of any reverse mortgage. Often they provide a lot more cash than any other program. HECMs also give you the most choices in how you can have the cash paid to you.

The money you get from a HECM can be used for any purpose. Although they are not cheap, HECM loans can be much less costly than the other reverse mortgages that can be used for any purpose.

Who is Eligible

To be eligible for a HECM loan:

• you, and any other current owners of your home, must be aged 62 or over, and live in your home as a principal residence;
• your home must be a single-family residence in a 1- to 4-unit dwelling, a condominium, or part of a planned unit development (PUD). Some manufactured housing is eligible, but cooperatives and most mobile homes are not (although some cooperatives may become eligible by the end of 2003);
• your home must be at least one year old and meet HUD's minimum property standards, but you can use the HECM to pay for repairs that may be required; and
• you must discuss the program with a counselor from a HUD-approved counseling agency. NWGF does not provide HECM loans, however, we can assist in finding a lender and a counselor.

Repaying a HECM and RAM

You must repay a HECM and RAM loans in full when the last surviving borrower dies or sells the home. It also may become due if:

• you allow the property to deteriorate, except for reasonable wear and tear, and you fail to correct the problem; or
• all borrowers permanently move to a new principal residence; or
• the last surviving borrower fails to live in the home for 12 months in a row because of physical or mental illness; or
• you fail to pay property taxes or hazard insurance, or violate any other borrower obligation.