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HomeBank LoanMontana First-Time Homebuyer Packages | The Lenders Community

Montana First-Time Homebuyer Packages | The Lenders Community


Get Pre-Approved for a Mortgage and Check Rates

 

To be eligible for down payment assistance through the Montana Housing Department borrowers must be eligible for a Regular Bond Program Loan. An approved lender qualifies buyers and determines how much down payment and closing cost assistance is needed. Some homebuyers may be able to borrow the entire minimum required down payment, plus all or a portion of the closing costs.

  • Can be used for the down payment and closing costs
  • 5% of sales price up to $12,500
  • Requires a Montana Housing 30-year first mortgage, both loans have the same fixed rate
  • 15-year amortizing loan with low monthly payments
  • A minimum credit score of 620 for all borrowers
  • $1,000 must come from the borrower’s own funds
  • Homebuyer education class required

 

BOND ADVANTAGE DPA PROGRAM CRITERIA:

  • Maximum loan amount of 5% of the purchase price up to $12,500.
  • The interest rate on the DPA loan will be the same as the mortgage loan
  • DPA loan comes in the form of an uninsured junior loan with no prepayment penalties.
  • DPA loan term is 15 years
  • Minimum median 620 credit score
  • A minimum of $1,000 should come from the borrower
  • Homebuyer education classes required
  • An obligation letter will be issued by Montana Housing to document an eligible source of down payment assistance funds for the lender’s FHA file.
  • Originating lender reimbursed by Montana Housing for DPA second loan advances
  • Montana Housing will purchase first-position Mortgage Loans at 101% and lenders are allowed to charge the borrowerseller an origination fee up to 1.75% of the loan amount

 

Get Pre-Approved for a Mortgage and Check Rates

  • Can be used for the down payment and closing cost assistance
  • Available for up to 5% of sales price, maximum of $10,000
  • 0% second loan, no monthly payments
  • Due upon transfer/sale of property or refinance/payoff/of the first loan
  • Requires a Montana Housing 30-year first mortgage fixed-rate loan
  • Household income limit $55,000 for 1-2 ppl and $65,000 for 3+ ppl
  • A minimum credit score of 620, a maximum Debt-to-Income (DTI) of 43% for all borrowers
  • $1,000 must come from the borrower’s own funds
  • Homebuyer education class required

 

MBOH Plus DPA PROGRAM CRITERIA

  • Household income limit is $55,000 for 2 people, $65,000 with 3 or more people
  • DPA loan of 5% of the purchase price up to the $10,000 limit
  • 0% interest rate on the second mortgage
  • DPA loan deferred payments on junior lien
  • If the borrower sells property DPA loan is due in full
  • Minimum 620 credit score
  • Maximum 43% debt-to-income ratio
  • $1,000 must come from the borrower’s own funds
  • Homebuyer education class required

 

Statewide Programs

Cities

Counties

Other Programs

Getting Started

Buying a Home

Owning and Maintaining Your Home

Other Montana Resources

National First-Time Homebuyer Loans

  • FHA LoansFHA home loans are very popular with first-time homebuyers cause they require a 580 credit score with just a 3.5% down payment. Debt-to-income ratios up to 50% are allowed making them perfect for low-income borrowers.
  • Conventional LoansConventional loans require a 620 credit score and a 5% to 20% down payment. If you put 20% or more down, mortgage insurance will not be required.
  • USDA LoansUSDA mortgage loans are for low-to-median income borrowers buying a home located in a USDA-eligible rural area. They provide 100% financing with a 620 or higher credit score. Mortgage insurance is required but the rate is the lowest of any type of mortgage program available.
  • VA Loans – Veterans of the U.S. military may be eligible for a VA home loan. No down payment or mortgage insurance is required and veterans with a 580 to 620 credit score are eligible.
  • HomeReady and Home Possible Loans – Freddie Mac and Fannie Mae created the HomeReady and Home Possible loan programs for low-income first-time homebuyers whose income does not exceed 100% of the area median income requiring just a 3% down payment and a 620 credit score.

 

Helpful Resources

 

Get Pre-Approved for a Mortgage and Check Rates

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