Department Of Commerce

DOWN PAYMENT ASSISTANCE PROGRAMS

It is common that first-time homebuyers can afford a monthly mortgage payment, but find it challenging to save enough money for down payment and closing costs. Montana Housing down payment assistance programs can reduce the amount of up-front cash needed to purchase a home.

To obtain down payment assistance from Montana Housing, the borrower must first be eligible for a  Regular Bond Program Loan. An approved  participating lender will qualify the buyer, determine how much down payment and closing cost assistance is needed and help the buyer select a Montana Housing home loan that is best. Some homebuyers may be able to borrow the entire minimum required down payment, plus all or a portion of the closing costs.

Bond Advantage Down Payment Assistance Program

  • Can be used for down payment and closing cost assistance
  • Available for up to 5% of sales price, maximum $15,000
  • Requires a Montana Housing 30-year first mortgage, both loans have the same  fixed rate
  • 15-year amortizing loan with low monthly payments
  • Minimum credit score of 620 for all borrowers
  • Homebuyer Education is required
  • Borrowers must provide a minimum of $1,000 cash investment in the purchase. Borrower’s contribution can be gifted.

MBOH Plus 0% Deferred Down Payment Assistance Program

  • Can be used for down payment and closing cost assistance
  • Available for up to 5% of sales price, maximum $15,000
  • 0% second loan, no monthly payments
  • Due upon transfer/sale of property or refinance/payoff/of first loan
  • Requires a Montana Housing 30-year first mortgage  fixed rate loan
  • Household income limit $80,000 for 1-2 ppl and $90,000 for 3+ ppl
  • Minimum credit score of 620, maximum Debt-to-Income (DTI) of 45% for all borrowers
  • Homebuyer Education is required
  • Borrowers must provide a minimum of $1,000 cash investment in the purchase. Borrower’s contribution can be gifted.


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