What is a reverse annuity mortgage (RAM)?
Answer:A reverse annuity mortgage (RAM) is a type of reverse mortgage product that allows a senior to receive lifelong payments from a bank or a specialized reverse mortgage lender and at death the real estate is transferred to the lending institution.
Usually, to qualify for a reverse annuity mortgage (RAM), the senior has to be over 70, their house needs to be fully paid off, and they should have demonstrated need for financial help to cover for medical bills or health care assistance.
The reverse annuity mortgage (RAM) is a type of lifetime reverse mortgage especially appropriate for elderly people with low to average income and in need of lifelong assistance - either financial or medical or both. Not every property and not everyone may be eligible under this program so you should check whether you or your spouse qualify for a reverse annuity mortgage.
Our advice: Be sure to ask your lender about FHA loans. FHA loans have very competitive interest rates because the loans are insured by the US Federal Government. Even if you have had serious credit problems, such as bankruptcy, it is easier to qualify for an FHA loan than a conventional loan. Also, taking an FIXED rate loan while the interest rates are still low is a smart idea. Check your eligibility here:
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Common misspellings: mortage and morgage