First-Time Home Buyer Programs in Montana

Montana Housing Programs:

Regular Bond Program + Down Payment Assistance:

Eligibility: First-time homebuyers (no homeownership in 3 years) or buyers in targeted areas.
Offerings: 30‑year fixed-rate mortgage (FHA, VA, USDA, or conventional) with optional down payment aid.
Requirements:

• Income ≤ county limits (e.g., ~$112,700 in Gallatin County); Bond and DPA details.
• Credit score ≥ 620; DTI ≤ 45% (50% w/ factors); homebuyer education; $1,000 borrower equity minimum.
• Purchase price cap: $349,525 (non-targeted), $427,198 (targeted).

Bond Advantage DPA:

**Up to 5% (max $15,000)** second loan, amortizing over 15 years at same fixed rate as first mortgage.

MBOH Plus 0% Deferred DPA:

**Up to 5% (max $15,000)** deferred, zero‑interest loan due upon sale or refinance; income ≤ $80K (1–2p) or ≤ $90K (3+p).

Veterans’ Program:

30‑year mortgage with ~1% reduced rate for veterans/survivors; combinable with DPA options. Program info.

Local City Programs:

Billings

$15,000 zero-interest deferred loan; funding fully committed as of Jan 10, 2025, with next round expected July 2025. City info.

Missoula

$15,000 forgivable loan (forgiven after 10 years); income cap 80% AMI; designed for workforce. Program info.

Great Falls

$10,000 zero-interest deferred loan; repayable on sale/refinance; income ≤ 80% AMI. Details.

Additional Resources:

• Mortgage Credit Certificate (MCC): Federal credit on mortgage interest; use with Montana Housing loans.
• USDA Direct Loans: 4.875% rate (effective June 1, 2025); terms up to 38 years. Program info.
• USDA/FHA/VA Loans: 0–3.5% down; trust alternatives.