With a reverse mortgage Montana homeowners use a state program or a federal loan to turn part of the value in your home into cash. While you're living in the home, no monthly mortgage payment is due. You pay the balance back later, when you sell the home or move out permanently. The standard federal product is a Home Equity Conversion Mortgage, or HECM, and that's what most people get. Between October 2025 and August 2026, 133 HECMs got insured in Montana; fiscal year 2025 had 189. The median home value for those borrowers was $493,000 while the median initial principal limit came to $218,988. Before fees and any prior mortgage are cleared, the amount you can first borrow is your initial principal limit. In 2026, the $1,249,125 federal HECM lending limit was hit by only 6 loans in Montana.
A Reverse Annuity Mortgage for borrowers 68 and older, with amounts up to $250,000
The Montana Board of Housing accepts applications for this state loan if your retirement income is small. This is a state program, not a federal HECM. People call it the RAM program, and it provides loans from $15,000 to $250,000. Any borrower listed on your deed has to be at least 68. You also need to stay below a yearly income limit. For a 1 person household that limit is $31,920, starting March 6, 2026. Before you apply, you must complete a RAM counseling session to understand the terms first.
Is it possible for Montana property tax relief to save you as much as $1,150?
It can, and tax relief from the state helps you keep your home. No matter what state you're in, federal reverse mortgage rules require you to stay current on property taxes and homeowners insurance. The home also has to be your main residence, and you’re required to maintain it in good shape. If you fall behind on property taxes, a HECM can go into default, which means your lender calls the loan due. Older owners can look at 2 Montana programs that cut their tax bills.
Lower rates for the initial $418,000 of market value
Montana’s Property Tax Assistance Program is open to you if your income is fixed or limited. For the first $418,000 of market value, qualifying homeowners see their tax rate drop by 30%, 50% or 80%.
Montana law 15-30-2337 allows refundable credits
You might get a refundable tax credit as high as $1,150 if you’re 62 or older and your combined household income is under $45,000. You receive cash from the Elderly Homeowner and Renter Credit even when filing an income tax return isn’t required. Montana law 15-30-2337 says you figure out your household income by taking your gross household income and subtracting $12,600. More seniors remain below the $45,000 limit because of that $12,600 subtraction.
Licensing for lenders, plus Montana’s Division of Banking and Financial Institutions
A state license from this office is required for every reverse mortgage lender in Montana. That license specifically includes reverse mortgage lending, so while you go over the reverse mortgage requirements, confirm your lender holds one. If you run into an issue, the Division steps in to mediate between you and the mortgage company. To get state staff involved, use the online Complaint Portal to submit a complaint.
