Down Payment Assistance Programs for First-Time Homebuyers in Montana

Montana is celebrated for its stunning natural beauty. “The Treasure State” is a prime destination for tourist attractions such as Glacier National Park and Yellowstone National Park along with outdoor activities have made it a popular tourist destination.

Lately, Montana has been hit by an affordable housing crisis which has impacted many residents, especially first-time homebuyers. The home prices witnessed a staggering increase whereas high interest rates have made homeownership difficult for many prospective homeowners.

Are you looking to purchase a home but getting overwhelmed by the down payment costs? Many potential homeowners can find relief by applying for down payment assistance programs which turns your dream of becoming a homeowner into reality.

Looking for Assistance in a Specific Part of Montana?

Montana is gripped by an affordable housing crisis with a staggering 60% increase in average prices. The costs have climbed from $282,277 in early 2020 to around $453,567 by late 2023 whereas average mortgage rates soared to 6.51%. The market is also hit by low inventory, with about four months’ supply of homes available. This is creating a fierce competition among potential buyers.

This is where down payment assistance programs are of help to first-time homebuyers in different parts of Montana. This page will provide a comprehensive overview of different initiatives, their types, sponsors, limits, and eligibility criteria.

Down Payment Assistance in Montana

Down payment assistance programs facilitate first-time homebuyers in getting the upfront costs of purchasing a home in Montana covered. The applicants are required to meet eligibility criteria such as minimum credit scores or contribute a certain amount of their own funds. These are aimed at alleviating the financial strains that Montanans face when purchasing houses.

Bond Advantage Down Payment Assistance Program

The Bond Advantage Down Payment Assistance Program is an initiative designed to facilitate first-time homebuyers who are eligible for the program but are facing hardships in meeting the upfront costs of buying a home.

Fundamentals

• Assistance Type: Junior loan (paying the secondary mortgage with the primary mortgage)
• Sponsor: Montana Board of Housing (MBOH)
• Assistance Amount: $10,000 (at maximum)

Eligibility Requirements

• The borrower/applicant must have a minimum credit score of 620.
• Borrowers have to contribute at least $1,000 towards the purchase.
• The purchased home should be the applicant’s primary residence.
• Borrowers have to complete a homebuyer education course.

MBOH Plus 0% Deferred Down Payment Assistance Program

The MBOH Plus 0% Deferred Down Payment Assistance Program facilitates first-time homebuyers in reducing the financial strains that come with down payments and closing costs.

Fundamentals:

• Assistance Type: Interest-free second mortgage
• Sponsor: Montana Board of Housing
• Assistance Amount: $15,000

Eligibility Requirements:

• The applicant/borrower should be first-time homebuyers (individuals who have not owned a home in the past three years)***.
• The borrower should have a minimum credit score of 620.
• Applicants should complete a NeighborWorks Montana-approved homebuyer education course.
• Income limits apply as the program assists individuals who need it the most.

***Eligible veterans or properties located in targeted areas are exempted from the requirement

Montana Down Payment Assistance Program FAQs

Do I need to take any courses to qualify for down payment assistance?

Yes, is mandatory for applicants/borrowers to complete a homebuyer education course to ensure they are well informed about the purchasing process and responsibilities of a homeowner.

How much financial assistance can I receive through these initiatives?

Eligible borrowers can receive up to $15,000 through both the Bond Advantage and MBOH Plus programs. This assistance helps in covering down payments and closing costs.

Disclaimer: This article is for informational purposes only and should not be considered as legal or financial advice. Please consult an attorney, mortgage lender, or CPA for guidance on your specific situation.