Montana Board of Housing’s Set-aside Loan Program is designed to assist borrowers earning on-average 80% of median income who receive down payment assistance from sources approved by the Montana Board of Housing.
These buyers can afford a monthly payment, but often struggle to save enough money for a down payment and to pay closing costs or they face an "affordability gap," the difference between what a buyer can afford to purchase and the cost of homes in their area.
Montana Board of Housing partners with cities, counties, non-profits, and other resources to assist a borrower with a home purchase. A participating lender will qualify the homebuyer for a Montana Board of Housing loan for most of the purchase price, and a non-profit will provide the balance. The difference can be as little as $1,500 or as much as $45,000, depending on location and the needs of the buyer. Borrowers must qualify for a Regular Bond Program loan, however, the set-aside interest rate is lower. Homebuyer Education is required.
