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 Board of 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 Board of 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 Board of 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 Board of 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 Board of 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.

Visit the Lender Webpage