Montana Down Payment Assistance Programs

Montana Down Payment Assistance Programs

Montana Down Payment Assistance Programs

Buying a home for the first time isn’t an easy task and if you need help, there are many Montana down payment assistance programs available to fulfill your needs.  Here are a few examples of Montana down payment assistance programs.

The Score Advantage DPA Program operates throughout the state of Montana and accepts those who have qualified for MBOH financing and do not have the money for the down payment or closing costs. The higher your credit score, the lower your loan rate will be.

Neighborworks Montana is a great program to deal with if you’re looking to buy a home in Montana. They will help you locate home buyer education programs within the state, financial counseling, etc.

The Montana Home Choice Coalition is another group that can help with becoming a homeowner and can provide information on financial aid availability, credit counseling, and other services.

Information about more Montana down payment assistance programs and their availability can be found through the Montana Board of Housing. They team up with many other organizations and groups around the state to assist families with their down payments. They partner with many different entities, such as cities, counties, businesses, and others who want to help the disadvantaged finally get into a home of their own.

Montana Down Payment Assistance Programs

80% Combined Program This Montana down payment program is designed to offer an alternative purchase loan option to Montana borrowers in areas that do not qualify for Rural Development (RD) loans. Eligible Montana borrowers put less than 20 percent Montana down and do not have to pay mortgage insurance because of an amortizing second loan. Buyers must contribute at least $1,000 and have a credit score of at least 640.

Score Advantage Down Payment Assistance Program For those who qualify for a Montana purchase loan can also qualify for Montana down payment assistance. The Score Advantage program offers assistance as an amortizing second loan up to $6,500. Interest rates vary based on a Montana borrower’s credit score.


Regardless of which type of down payment program, you will first need a mortgage. Below are mortgages that require low or no down payments:

No Down Payment Mortgages – mortgages that require no down payment

USDA Rural Loan – the purpose of the Single Family Housing Direct Home Loan is to assist low- and very-low-income applicants obtain decent, safe and sanitary housing in eligible rural areas by providing payment assistance to increase an applicant’s repayment ability. There is no down payment. Payment assistance is a type of subsidy that reduces the mortgage payment for a short time. The amount of assistance is determined by the adjusted family income.

VA Home Loan – VA helps Service members, Veterans, and eligible surviving spouses become homeowners. As part of our mission to serve you, we provide a home loan guaranty benefit and other housing-related programs to help you buy, build, repair, retain, or adapt a home for your own personal occupancy. There is no down payment as long as the sales price doesn’t exceed the appraised value.

 

Low Down Payment Mortgages – mortgages that require up to 3.5% down payment

FHA Mortgage Loan – the purpose of the FHA Home Mortgage Loan is to provide mortgage insurance for a person to purchase or refinance a principal residence. The mortgage loan is funded by a lending institution, such as a mortgage company, bank, savings and loan association and the mortgage is insured by HUD. A down payment of just 3.5 percent is required and may consist entirely from “gift funds.” The credit score requirement is 580.

Home Possible® Advantage Mortgage – the purpose of the Home Possible® Advantage mortgage by Freddie Mac is to offer low down payments for low- to moderate-income homebuyers or buyers in high-cost or underserved communities. Down Payment can come from a variety of sources, including friends and family, employer-assistance programs and secondary financing.

The HomeReady™ Mortgage – the purpose of the HomeReady™ mortgage by Fannie Mae is to provide flexibility for applicants buy home with down payments as low as 3%, below market mortgage rates, co-borrower flexibility, additional income sources and reduced mortgage insurance costs.

More places to find assistance on down payment:

HUD Programs

The US Department of Housing and Urban Development (HUD) offers the following programs:

Good Neighbor Next Door Program

The Good Neighbor Next Door Program was created by U.S. Department of Housing and Urban Development (HUD) to help law enforcement officers, pre-Kindergarten through 12th grade teachers, firefighters and emergency medical technicians buy homes. The biggest benefit of the Good Neighbor Next Door Program is the 50% discount of the home’s list price. The only catch is that the home owner must commit to live in the property for 36 months as their sole residence.

To learn more about the Good Neighbor Next Door Program, click here.

Section 184 Loan – The Indian Home Loan Guarantee Program

The Section 184 Indian Home Loan Guarantee Program is a mortgage for American Indian and Alaska Native families, Alaska villages, tribes, or tribally designated housing entities. In 1992 Congress created this program to help Native American Communities with homeownership.

Section 184 loans helps borrowers buy homes with a low down payment and flexible underwriting. Moreover, the loan does not need to be used only on properties on native lands. Purchase of an existing home for single-family residences. Also allowed are new construction, rehabilitation, and refinance.

To learn more about Section 184, click here.

Montana Housing Agencies

Montana housing agencies are your best resource for down payment assistance programs. Through funding from HUD, the purpose of these agencies is to ensure that affordable housing is available for everyone.