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 the 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, with a maximum of $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, with a maximum of $15,000
- 0% second loan, no monthly payments
- Due upon transfer or sale of property or when refinancing or paying off the first loan
- Requires a Montana Board of Housing 30-year first mortgage fixed rate loan
- Household income limit $80,000 for 1-2 people and $90,000 for 3+ people
- Minimum credit score of 620, maximum debt-to-income ratio 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