Home Loans

Montana Board of Housing's Home Loan Programs The Montana Board of Housing home loan program that is best for you will depend on several factors such as credit score, debt ratios, income and the purchase price of your home. Contact a Montana Board of Housing approved  participating lender . They are your best resource to answer questions and to qualify a buyer for a loan. Be sure to tell them you want a Montana Board of Housing loan. The funds used to purchase loans are from tax-exempt bonds called Mortgage Revenue Bonds, or MRB's, therefore the Internal Revenue Service (IRS) has seven eligibility requirements all borrowers must qualify under: Income Limits Purchase Price Limits The residence must be a borrower’s primary residence Trade or business use cannot exceed 15% of the residence’s total area Be a first-time homebuyer (not owned a principal residence during the previous three-years, *some exceptions apply) Funds must be used to purchase a home (no refinancing loans) Recapture Tax  is a possibility Home Loan Programs Regular Bond Program  is a 30 year,  low-interest rate  loan and is geared toward first-time homebuyers when their income and purchase price is below the posted limits. This program has income limits based on all members of the household 18 and older. The home can be located anywhere in Montana and includes single family homes, condos and manufactured homes. To be eligible for Montana Board of Housing programs, a homebuyer must first qualify for an or HUD-184 first mortgage loan. Down Payment Assistance   or a "Subordinate Loan" can be combined with any of our loan programs to help homebuyers with funds needed to purchase a home. If cash at closing is your challenge, a Montana Board of Housing Down Payment Assistance Second Mortgage can help.  Learn more here. Special Programs  were created for homebuyers who receive down payment assistance or qualify for programs offered by non-profits, local governments or other partner organizations that have been approved by the Montana Board of Housing. Examples include Habitat for Humanity, Community Land Trusts and NeighborWorks. These organizations generally require borrowers to be at or below 80% of area median income. These special programs offer first mortgages at reduced rates to target populations to remove barriers to homeownership. 80% Combined Program  provides homebuyers who are eligible for Montana Board of Housing financing with an alternative to an FHA-insured loan, eliminating the need for mortgage insurance. The 80% Combined Program is a 30-year first-position mortgage loan at 80% Loan-To-Value (LTV) that is paired with a second loan at 20% Loan-To-Value (LTV) offered by a partnering non-profit. Montana Veterans’ Home Loan Program  provides first mortgage funds to Montana residents serving or who have served in the military through the federal armed services and the Montana National Guard. Program funds are provided from the principal of the Montanan Coal Tax Trust Fund; income and purchase price limits do not apply. Montana Board of Housing administers the Program, with the Montana Board of Investments (MBOI) purchasing the mortgages. The mortgage  interest rate  is 1% lower than market and assists eligible Veterans purchase their first home. Please talk with your Participating Lender about other limitations that may apply.