First-Time Home Buyer Programs in Montana

Montana Housing Division Programs:

Montana Housing (Department of Commerce / Montana Board of Housing) offers 30‑year fixed first mortgages through approved participating lenders and two main state DPA options. Key program facts (links to official pages below): Montana DPA and Current rates & limits.

Montana First-Time Homebuyer Mortgage Programs:

Eligibility: Generally first‑time homebuyers (no ownership of a primary residence in the past 3 years; federal/state 'targeted area' exceptions can apply).
Offerings: Montana Board of Housing 30‑year fixed first mortgages (Regular Bond, Set‑aside, 80% Combined, Veterans' Home Loan — see state pages). These can pair with FHA, VA, USDA (RD) or conventional first loans through participating lenders.
Requirements:

• Income and purchase price must be ≤ county‑specific limits for most MBOH programs — see the Board's county chart. (Montana limits & rates).
• Minimum mid credit score commonly 620 for Montana DPA eligibility (MBOH DPA term PDFs). FHA/VA/USDA underwriting rules differ (FHA generally allows 3.5% down at ~580+ credit score per HUD). (Bond Advantage terms, MBOH Plus terms, HUD/FHA guidance).
• Debt‑to‑income: MBOH DPA programs commonly use a maximum DTI around 45%; lenders may impose overlays — confirm with your participating lender. (Montana DPA).
• Homebuyer education is required for most Montana Board of Housing programs; Montana provides an approved provider list. (Montana DPA).

Down Payment Assistance (DPA) Options:

Bond Advantage DPA: Available for up to 5% of the sales price (maximum $15,000), structured as a subordinate second lien (15‑year amortizing second) that pairs with an MBOH 30‑year first mortgage. Minimum mid credit score 620; homebuyer education required. See MBOH Bond Advantage terms and the state DPA page for details: Bond Advantage terms and Montana DPA.

MBOH Plus 0% Deferred DPA: Available for up to 5% of purchase price (maximum $15,000). The MBOH Plus is a 0% deferred second mortgage (no monthly payment; due on sale, transfer, refinance or payoff). Household income limits for this product are capped (example: $80,000 for 1–2 persons; $90,000 for 3+ — see the Board’s income chart). Minimum mid credit score commonly 620; maximum DTI guidance around 45%; borrower minimum cash contribution rules apply. See program terms: MBOH Plus terms and Montana DPA.

Set‑aside & partner programs: MBOH works with local nonprofits, HOME/CDBG programs, community land trusts and NeighborWorks partners for additional gap financing or lower‑rate options. Examples and program admin contacts are listed on the state site: MBOH set‑aside programs.

Veterans & public service options:

Montana Veterans' Home Loan Program (VHLP): State‑run VHLP provides 30‑year fixed first mortgages through Montana Housing. VHLP typically has no income or purchase‑price limits (it does have a loan cap). For example, the Board listed a VHLP loan limit of $517,020 (effective 05/13/25) and posted sample program rates on its 'Current Rates' page — check Montana Housing for the latest rates. (VHLP program page, Current rates & limits).

Local Programs (Examples):

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

Billings / Yellowstone County

Billings First‑Time Home Buyer Program: City‑administered deferred/zero‑interest loans commonly up to $15,000 for down payment/closing costs (income‑based; homebuyer education required). Check the city page and contact the program coordinator for current funding status. (Billings First‑Time Home Buyer).

Missoula / Missoula County (regional partner)

Human Resource Council (HRC) First Time Homebuyer DPA: HRC administers Missoula‑region first‑time buyer assistance (Mineral, Missoula, Ravalli counties). HRC's official page currently lists deferred second loans 'up to $90,000' in those counties — confirm the latest flyer and income/purchase caps directly with HRC. (HRC First Time Homebuyer DPA).

Great Falls / Cascade County

Great Falls / HOME‑funded assistance: Great Falls administers HOME funds and coordinates with NeighborWorks/other nonprofits to deliver down payment and closing‑cost assistance; amounts and affordability/recapture rules vary by HOME/CDBG regulations. See the city HOME page for contacts and program cycles. (Great Falls HOME / housing).

Additional Information:

• USDA Loans: USDA Rural Development single‑family programs offer low‑ or no‑down‑payment options in eligible rural areas — check USDA RD Montana for address‑level eligibility. (USDA RD - Montana).
• VA Loans: VA purchase loans often allow 0% down for eligible veterans/active members; confirm eligibility and lender options at VA.gov. (VA Home Loans).
• FHA Loans: HUD/FHA guidance: FHA commonly allows a 3.5% minimum down payment for borrowers with a qualifying credit score (~580+); lower credit tiers (500–579) usually require ~10% down — lenders may require higher scores. (HUD/FHA guidance).

Montana programs are designed to be stackable — many buyers combine state DPA with federal loans or local HOME/CDBG assistance. Contact a participating lender or program administrator early to reserve funds and confirm eligibility.

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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