First-Time Home Buyer Programs in Montana

Montana Housing Division Programs:

Montana Housing (Montana Department of Commerce / Montana Board of Housing) offers 30-year fixed first mortgages through approved participating lenders and several down payment assistance options. Key DPA programs include Bond Advantage (up to 5% of sales price, commonly capped at $15,000) and the MBOH Plus 0% Deferred program — see the state site for current rates, county income & purchase price limits, and program terms: Montana DPA and Current rates & limits.

Montana First-Time Homebuyer Mortgage Programs:

Eligibility: Typically first-time homebuyers (no ownership of a primary residence in the past 3 years; federal/state 'targeted area' exceptions exist).
Offerings: 30-year fixed-rate first mortgages (Regular Bond, Set-aside, 80% Combined, Veterans' Home Loan) that can pair with FHA, VA, USDA or conventional first mortgages through participating lenders.
Requirements:

• Income and purchase price ≤ county-specific limits (varies by household size; see Montana's county chart). See the state chart for exact county limits and purchase caps.
• Minimum credit score commonly 620+ for Montana DPA eligibility; FHA/VA/USDA rules differ (FHA often 580+ for 3.5% down). See program links below.
• Debt-to-income guidance: MBOH DPA programs commonly use a maximum DTI around 45%; lenders may have overlays—confirm with your participating lender.
• Homebuyer education is required for most Montana Board of Housing programs (Montana provides an approved homebuyer education list).

Down Payment Assistance (DPA) Options:

Bond Advantage DPA: Up to 5% of the sales price (commonly capped at $15,000), structured as a subordinate loan (15-year amortizing second) that pairs with a Montana Board of Housing 30-year first mortgage. Minimum credit score 620; homebuyer education required. See the Bond Advantage terms: Montana DPA and program terms (MBOH Bond Advantage terms PDF) on the state site.

MBOH Plus 0% Deferred DPA: Up to 5% (max commonly $15,000) as a 0% deferred second loan — no monthly payments; due on sale/refinance. The state lists household income limits for this product (example: $80,000 for 1–2 people, $90,000 for 3+ for MBOH Plus); minimum credit score 620; DTI and borrower contribution rules apply. See details at Montana DPA and the MBOH terms PDFs on the Montana Housing site.

Set-aside & partner programs: Montana Board of Housing works with local nonprofits, city HOME/CDBG programs, CLTs, and NeighborWorks partners to provide additional gap financing or reduced-rate first mortgages. See MBOH set-aside programs for examples (NeighborWorks Montana, community HOME funds, Habitat, community land trusts, etc.).

Veterans & public service options:

Montana Veterans' Home Loan Program: State-run VHLP provides 30-year fixed first mortgages at a rate often about 1% below the MBOH Regular Bond rate. VHLP typically has no income or purchase-price limits (there is a loan cap; MBOH lists the program loan limit on its rates page). See the official program page: Veterans Home Loan Program.

Local Programs (Examples):

Many cities and regional nonprofits add deferred/forgivable assistance; funding and maximums vary by year and HUD allocations. Confirm availability with the local administrator before relying on dollar amounts.

Billings / Yellowstone County

Billings First-Time Home Buyer Program: City-run deferred/zero-interest loans commonly up to $15,000 for down payment/closing costs (income-based; homebuyer education required). See the city page: Billings First-Time Home Buyer.

Missoula / Missoula County (regional partner)

Human Resource Council (HRC) First Time Homebuyer DPA: HRC administers a Missoula-region DPA (Mineral, Missoula, Ravalli counties). HRC's official guidance lists deferred second loans that can be substantially larger than many city programs (HRC lists assistance up to $90,000 in some counties) — confirm current flyer and income/purchase caps with HRC: HRC First Time Homebuyer DPA.

Great Falls / Cascade County

Great Falls / NeighborWorks (HOME-funded) assistance: Great Falls uses HOME funds and works with NeighborWorks Great Falls/Neighborhood Housing Services to deliver down payment and closing-cost assistance; amounts and recapture rules are governed by HOME/CDBG rules — see the City of Great Falls HOME info: Great Falls HOME / housing.

Additional Information:

• USDA Loans: USDA Rural Development programs offer low- or no-down-payment options in eligible rural areas — check USDA eligibility maps for an address-level determination. See USDA RD Montana single-family programs: USDA RD - Montana.
• VA Loans: VA purchase loans often allow 0% down for eligible veterans/active members — check VA.gov for eligibility and loan types. VA Home Loans.
• FHA Loans: FHA minimum down payment is commonly 3.5% with a credit score of 580 or higher (500–579 typically requires 10% down); lenders may set higher minimums. See HUD/FHA guidance: HUD / FHA guidance.

Montana programs are designed to be flexible — many buyers stack state DPA with federal loans or local HOME/CDBG assistance.

Always confirm current rates, income/purchase limits, and local program funding with Montana Housing and the program administrator or an approved participating lender before making decisions. See Montana Housing's main homeownership page: housing.mt.gov/Homeownership.

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