STATEWIDE PROGRAMS

Montana Housing Downpayment Assistance Programs

Assistance Available:
Montana Housing recognizes that many residents of the state get caught in the renter’s trap because they don’t have the necessary funds to make the required downpayment to purchase a home even though they are fully capable of making the monthly payments on a mortgage.

For this reason Montana Housing has partnered with a number of entities across the state to address this challenge.

The Bond Advantage Assistance Program offers qualified borrowers anywhere from $1500 to $10,000 for downpayment and closing costs when they are approved for Montana Housing financing insured or guaranteed by FHA, VA, RD, or HUD-184. These are junior loans amortized over 15 years at the same interest rate as the 1st mortgage.

Qualifications:
You must be a first time homebuyer. You must have a minimum credit score of 620. You must not exceed the income limits. You must purchase a home in the following counties: Blane, Sanders, Deer Lodge, Silver Bow, Flathead, Mineral, Missoula, Hill or the City of Great Falls. Property purchased may also be located in the census tracts of: Gallatin County 6 & 11.01 and Lincoln County 2.

The Neighborhood Works Montana Statewide Downpayment Assistance Second Mortgage Program offers a variety of programs to meet the needs of residents who need assistance with the cost of downpayment and closing. There are basically two types of loan assistance: 0% deferred and amortizing.

With the 0% deferred loan, you pay no interest and make no payments until your sell or refinance your home. This type of loan is designed for lower income borrowers who need to keep their monthly mortgage payments as low as possible. Income limits apply.

With the amortizing loan you make two payments each month: one to your mortgage lender and one to Neighborhood Works. This type of loan may help you avoid the cost of mortgage insurance. You can repay the loan at any time to increase your equity.

The MBOH 0% Deferred Assistance Program offers qualified borrowers 30 year, fixed rate, fully amortized first mortgages insured or guaranteed by FHA, VA, RD, or HUD-184 along with second mortgages that are 5% of the purchase price. Assistance available ranges from $1500 to $6500. These are zero interest junior liens with no monthly payments. The lien is payable in full upon the sale, transfer, or refinance of the property.

Qualifications:
You must be a first time homebuyer. You must have a minimum credit score of 620. Effective July 15, 2019 the maximum allowable household income is $55,000 regardless of family size. The property must meet the purchase price limits. You must purchase a home in the following counties: Blane, Sanders, Deer Lodge, Silver Bow, Flathead, MIneral, Missoula, Hill or the City of Great Falls. Property purchased may also be located in the census tracts of: Gallatin County 6 & 11.01 and Lincoln County 2.