Friday, August 19, 2011 2:26:16 PM
FOR IMMEDIATE RELEASE:
Friday, August 19, 2011
Marketing & Web Specialist
Montana Housing Division
Montana Department of Commerce
Montana Board of Housing’s Mortgage Rate Hits Historic Low
(HELENA) – The Montana Board of Housing (MBOH) recently announced the historically low rate of 3.875% for its 30-year fixed-rate mortgages. The Montana Board of Housing has been providing mortgage financing for first-time homebuyers for over 33 years. This rate smashes the previous low by a full percentage point.
These are extraordinary times for buying a home - houses are selling at the lowest prices in years and now mortgage rates are at unprecedented lows as well.
Other features of MBOH loans:
- Low, affordable down payments, ranging from zero to 3.5% rather than 20%, because all loans are guaranteed by one of the following: FHA, VA, RD, or HUD-184.
- 30-year fixed-rate loans with no prepayment penalties
- MBOH pays 1% of the lender fees, which means lower closing costs
- Limited to low- to moderate-income homebuyers (go to housing.mt.gov for income limits)
- Limited to first-time homebuyers ( no homeownership in past 3 years )
- Homebuyers are encouraged to take First-Time HomeBuyer Education Course (go to housing.mt.gov for schedules and locations of classes across the state)
- MBOH also accepts unconventional borrowers who complete MBOH-approved Homebuyer Education and who are credit worthy ( high-risk profile = credit score below 680 or front-end debt-to-income ratio above 31% or back-end ratio above 41% )
In addition to this low rate, MBOH wants to remind people in Montana that these loans are "Made in Montana and they Stay in Montana". Homebuyers find a lender in their town who is approved to do MBOH loans. After closing, the Board purchases the loan and the servicing is handled in Montana. Any homebuyer who needs to discuss their loan is able to speak to a person here in Montana.
MBOH always encourages potential homebuyers to take a First-Time Homebuyer Education class as their first step toward homeownership, to help determine if they are personally ready to do so. For more information, call 406.841.2840 or go to housing.mt.gov