Programs In Montana For 1st Time Buyers
First time home buyers in Montana have many options available to them for help in purchasing their first residence. There’s a grant program available, two down payment and closing cost assistance programs, and NeighborWorks Montana provides some additional, very helpful programs for Montana residents seeking to purchase their first home.
Here are some highlights:
20+ COMMUNITY SECOND PROGRAM
The 20+ Community Second program loans provide up to 20% of total financing needed for borrowers whose income is at or below 120% of the area median income based on family size, and who are working with participating lenders. Ask your lender if they participate in this program. Loans are between $10,000 and $50,000 and allow borrowers to provide as little as 1% of the home purchase price as down payment. This product is particularly relevant, and affordable, for people in Montana’s urban areas (Billings, Bozeman, Great Falls, Helena and Missoula) where FHA loans requiring mortgage insurance are the only other option for some borrowers and are more expensive. Borrowers are required to take a homebuyer education class and participate in a one-on-one counseling session from a NeighborWorks Montana partner organization. Contact your lender and ask them to work with NeighborWorks Montana to see if this product can make homeownership a possibility for you.
Other Financing Resources
There are many organizations, cities, counties, lenders, employers and others who, like NeighborWorks Montana, are working to help make homeownership a reality for people who might not otherwise have that opportunity.
Other than conventional mortgages below are some of the types of financial products most commonly used by homebuyers in Montana. Click to learn more and work with your lender to put together a financing package that is affordable and works for you.
- Matched Savings Accounts grants for low-income aspiring homebuyers
- Montana Board of Housing (MBOH) loans for first-time homebuyers
- Federal Housing Administration (FHA) loans for first-time homebuyers
- United State Department of Agriculture – Rural Development (USDA-RD) loans for people who live in rural areas
- US Department of Veteran Affairs (VA) loans for veterans
- Housing and Urban Development Tribal Loans (HUD-184) loans for tribal members
For complete details on these programs, including contact information and instructions on how to apply, please visit this NeighborWorks Montana programs page.
More Montana First Time Buyer Programs
In addition to the above homebuyer programs offered by IHDA, there are local housing agencies in various towns, cities and counties throughout the state that provide financial assistance to 1st time property buyers as well. To determine if there any near you, please visit local first time home buyer programs in Montana.