Get Help From DPA Programs Available To You
First time home buyers in Montana have many options available to them for help in purchasing their first residence. If you feel that saving enough for a down payment will forever prevent you from buying your first residence, here’s some great news. There are two separate agencies in Montana that each provide down payment assistance for first time home buyers.
Montana DPA Details
Help coming up with the needed down payment is perhaps the greatest resource that you can tap into as a first time home buyer. Here are some details from the agencies’ websites:
From the Montana Board of Housing:
Down Payment Assistance
Bridging the “Affordability Gap”
Many people face challenges to home ownership. Maybe you are caught in a renters trap; you can afford a house payment, but are having a hard time saving funds for down payment and closing costs. Or, you may face an “affordability gap” where the amount of a loan you qualify for isn’t high enough to purchase a home in your area.
The Montana Board of Housing (MBOH) partners with several groups statewide to address these challenges. Our partners include cities, counties, non-profits, lenders, employers and others who are willing to step in and help make home ownership happen. These housing partners apply to MBOH for funding, called set-aside funds. The various partners are able to contribute anywhere from $1,500 to $40,000, depending on your need, location, and their program limitations. The partner’s help can be a second loan that requires payments, or the payment on these second loans may be deferred until you sell your home. It is important for you to know that these are loans, and not grants. Down the road when you sell your home, the non-profit gets paid off, and can use that money again to help someone else buy a home.
The interest rate on our set-aside loans is currently 3.125%.
and from NeighborWorks Montana:
Helping You Open The Door To Homeownership
NeighborWorks Montana’s IDA program is a 4:1 match savings account. You, as a participant, save up to $1,000 and receive a match of up to $4,000. This could give you a total of $5,000 for down payment and closing cost assistance towards the purchase of your first home.
How the IDA WorksThe purpose of the program is two-fold: To help you establish savings and budgeting habits in preparation for homeownership, and to form a relationship with a lending institution.
To get complete program details, including income limits as well as how to get the application process started, please visit the Montana Board of Housing DPA page, and also be sure to visit the NeighborWorks Montana DPA page.
More Down Payment Assistance in MT
In addition to the above DPA programs available in Montana, there are local housing agencies in various towns, cities and counties throughout the state that provide financial assistance to prospective 1st time property buyers as well. To find out about more down payment assistance available near you, please visit local Montana programs for 1st time buyers.