Montana - Government Backed Loans

The Montana Board of Housing was created by the Montana Housing Act of 1975. The Board is an agency of the State and operates within the Department of Commerce for administrative purposes.

Purchase Programs

Rural Development Program

The Rural Development Program provides assistance in the form of a 30-year fixed-rate loan to homebuyers looking to purchase a home in a designated rural area. The maximum loan amount is $200, 160, and rate depend upon the financing options chosen. A $1, 500 downpayment is required, but may be reduced to $500 if the borrower has completed a homeownership education course.

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Rural Development Loan Leverage Program - RD

This program is designed for homebuyers who do not meet regular loan requirements. Two loans are included in this program: a first loan which provides 10% to 50% of the home's purchase price, and a second loan for the remainder of the purchase price. Interest on the second loan is subsidized as low as 1% in order to the borrower's need.

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FHA

Funded by the Federal government, a FHA loan provides eligible homebuyers who have little or no credit with affordable mortgage loans, making homeownership affordable to most families.

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MyMontana Mortgage Program

The MyMontana Mortgage Program is aimed to provide affordable homeownership opportunities to Native American, Section 8 Homeownership clients, homebuyers with disabilities and full-time employees of essential community services. Borrowers must attend a homeownership education course and fall within income limits.

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Mortgage Credit Certificates

Eligible homebuyers are able to save money via Mortgage Credit Certificates, as this program offers income tax benefits, and homebuyers are to use savings toward monthly mortgage payments. The benefits are procured by taking a 20% credit against their federal income tax liability, and an 80% deduction for the mortgage interest paid.

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VA Program

The VA Program is a Federally funded loan offered to qualifying military veterans, and does not require a downpayment if the home appraises for the sale price or greater. No credit score or monthly mortgage insurance payments are required with the VA loan, and credit underwriting is flexible.

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Disabled Accessible Affordable Homeownership

First-time homebuyers who have a disability or who live with a family member with a disability may be eligible for homeownership assistance in the form of a low-interest mortgage loan.

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