If you are looking to purchase a home in Montana, there are many incentives, programs, and grants for the first time homebuyer. The state of Montana and local communities offer various incentives for the first time homebuyer in Montana including down payment assistance and a variety of loans aimed at the first time home owner.
What Down Payment Assistance Programs Are Available?
One of the problems that many Montanans face is being able to pay for closing costs or to make the down payment. Or maybe when you apply for a loan, the amount you qualify for on the loan is too low to purchase a home in the area that you seek a residence in. The Montana Board of Housing partners with municipalities, lenders, nonprofits, employers, and other entities to offer down payment assistance. This down payment assistance can be anywhere from $1500 all the way up to $40,000. The amount you may receive depends on location, need, and the program, itself.
While this sounds like a grant, it is actually a loan, but it may be deferred until you sell your home. If it is not deferred, it will be like a second loan on your home. Once the Montana Board of Housing is paid off, it uses that money to help others in need. Currently, the interest rate on these loans is 5.5 percent.
Score Advantage Down Payment Program
The Score Advantage Down Payment Assistance Program is another program for those who need help with their down payment. This is available to you if you are eligible for Montana Board of Housing financing. This down payment assistance program works in conjunction with a 30 year VA, FHA, HUD-184, or rural development loans. You can receive up to $6500 in a loan on the property. The interest rate is dependent on your credit score, but it is a fixed-rate loan and you can prepay without penalty.
NeighborWorks Montana Statewide Down Payment Assistance Second Mortgage Program
NeighborWorks Montana Statewide Down Payment Assistance Second Mortgage Program is a program which the Montana Board of Housing and various partners, including municipalities, lenders, employers, and nonprofits offer assistance in covering closing costs. If you are not qualified for either Down Payment Assistance or Score Advantage Down Payment Program, NeighborWorks Montana Statewide Down Payment Assistance Second Mortgage Program may be able to help. Like the others, it is a loan that must be paid off.
What Home Loan Programs Do FHA, VA, and Other Regular Bonds Offer?
If you are a first-time home buyer, you may be qualified for a loan that is guaranteed either by the Veterans Administration Mortgage Guarantee Program or VA, the Federal Housing Administration Mortgage Insurance Program or FHA, the Housing and Urban Development 184 Native American Housing Program or HUD 184, or the Rural Development Loan Guarantee or RD. These programs will work with the Montana Board of Housing’s down payment assistance. These are loans on a Federal level and are not just available in Montana.
Montana Veterans Home Loan Program
If you are or were in the military, you may be able to receive a mortgage through the Montana Veterans Home Loan Program. This program offers loans at 1 percent below the market rate for those people who are serving, or who have served, our country in the military. To qualify for this loan, you must either be in active duty or you have been discharged with an honorable or general discharge. You may also be a surviving spouse of an eligible veteran who was killed in the line of duty. Military service by definition includes Active Duty and Federal Reserve under Title 10 of the US Code.
Other criteria you must meet in order to qualify for this loan includes being a first-time home buyer, being a resident of Montana, and having filed Montana state income tax for the entire previous year, providing at least $2500 toward your new home, and you must agree to live in this home as a primary residence.
The 80 Percent Combined Program
If you are unable to get an RD guaranteed loan, you may be able to obtain an FHA insured loan called the 80 Percent Combined Program. NeighborWorks Montana and the Montana Board of Housing have partnered together to provide loans at 80 percent of the loan value, thus eliminating mortgage insurance.
What Is the Disabled Accessible Affordable Homeownership Program?
If you suffer from a permanent disability, you may be able to obtain a Disabled Accessible Affordable Home Ownership Program loan to either have a new home constructed or to purchase an existing home and have it made accessible. If you qualify, you can gain significant help in staying independent and living where you want to live.
As you can see, there are many ways that the first time home buyer Montana can receive assistance in buying his or her first new home. Montana is a great place to live in the state and municipalities want to help you purchase your first home.
2 Point Highlight
NeighborWorks Montana and the Montana Board of Housing have partnered together to provide loans at 80 percent of the loan value, thus eliminating mortgage insurance.
NeighborWorks Montana Statewide Down Payment Assistance Second Mortgage Program is a program which the Montana Board of Housing and various partners, including municipalities, lenders, employers, and nonprofits offer assistance in covering closing costs.
If you’re looking to purchase a home for the first time in Montana, the Montana Board of Housing offers several programs to help you.
