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Mortgage Rates for Today

Montana Assistance Programs

If you are a first-time home buyer in Montana and want to know more about mortgage rates, you don’t have to go anywhere. Total Mortgage is here to help you navigate various financing options in Montana and choose the best one. Our experts will help you purchase the perfect house with a Montana first-time home buyer program. To learn more about mortgage loans in Montana, get in touch with us. We can help you realize your dream of home ownership in the Treasure State.

If you have any questions about securing the best mortgage rates in Montana, please contact us today. We are here to assist you in finding the mortgage rates that best suit your needs.

Montana first-time homebuyer programs

Montana Housing Regular Bond Program

Montana Housing's flagship homebuyer program is the Regular Bond mortgage, which offers a 30-year fixed rate for first-time home buyers in Montana.

Borrower requirements:

  • Annual household income cannot surpass Montana Housing's thresholds, which fluctuate depending on family size and location.
  • Applicants must prequalify for an approved first lien like FHA, VA, HUD 184, or RD loans in Montana.
  • Homebuyer Education course is mandatory if credit is under 680, the front-end ratio is above 31%, or the back-end DTI exceeds 41%.

Property requirements:

  • Eligible properties encompass single-family homes, condominiums, and manufactured houses.
  • Must be within Montana Housing's purchase price limits, which range from $481,176 to $876,867, depending on the location in the state.

Montana Housing 80% Combined Program

The Eighty Percent Combined Program provides first-time home buyers in Montana with an opportunity to pair a Montana Housing-approved loan for eighty percent of the purchase price with an additional loan covering the remaining twenty percent from one of the agency's partners, such as NeighborWorks Montana. This two-loan structure enables those with limited funds and good credit to realize the dream of owning their home.

Borrower requirements:

  • Prospective buyers wishing to take advantage of this option must contribute at least one percent of the purchase price from their pocket, with $1,000 as the lowest amount.
  • Credit scores must be 640 or higher to qualify, while a front-end ratio of 32% is required.
  • The back-end ratio, totaling all debt compared to income, is capped at 45%.
  • Completing an approved homebuyer education class is compulsory; the income and price limits are the same as the Regular Bond program.

Montana Veterans' Home Loan Program

If you're a veteran looking to purchase your first home in Montana, the Montana Veterans' Home Loan Program can assist you greatly with an exceptionally affordable interest rate. This money-saving opportunity is exclusively for those seeking their first homeownership and has no restrictions regarding earnings.

The borrowing restriction of this home loan in Montana is $457,117. The qualified home types consist of single-family houses or particular manufactured houses—no condos. Like other Montana Housing programs, you must finish a homebuyer education course to be involved. You have to contribute no less than $2,500 of your money to the purchase.

It's a first-come, first-served program. Contact your Mortgage provider in Montana for the most recent information on availability.

Montana down payment assistance

Those used to disbursing monthly rent payments may not be confused by a similar mortgage amount, but what about the down payment and closing expenses? Montana Housing offers two options to resolve this issue for eligible first-time buyers. However, participation in the Regular Bond Program is necessary to qualify for either choice of assistance.

Bond Advantage Down Payment Assistance Program

The Bond Advantage assistance program provides a fifteen-year loan with monthly payments to help homeowners. Such Montana down payment assistance programs allow borrowers to acquire up to five percent of their home's sale price, with a ceiling of $15,000, to finance their down payment and closing costs.

Borrower prerequisites:

  • Applicants must possess a minimum credit rating of 620 for all names attached to the loan.
  • Furthermore, the borrower is responsible for investing at least $1,000 of personal funds into the property acquisition.
  • Finally, one must qualify for Montana Housing Mortgage.

MBOH Plus 0% Deferred Down Payment Assistance Montana

With the MBOH Plus 0% Deferred option, homeowners can gain up to 5% of their home's sale price, up to a maximum of $15,000, without monthly installments. Rather than constant payments, the assistance sum must be repaid upon selling the home or paying off or refinancing the primary mortgage. No additional interest is levied.

Those qualified for this program:

  • Minimum credit rating of 620
  • Maximum debt-to-income proportion of 45%
  • Gross annual income limit of $80,000 for single or two-member households and $90,000 for households of three or more people
  • Must contribute no less than $1,000 of personal funds toward the property acquisition
  • Must meet the borrowing standards for a Montana Housing Mortgage loan

Other Montana homebuyer assistance programs

Mortgage credit certificate (MCC)

While some may be rejected for a Montana Housing loan, the Mortgage Credit Certificate presents an alternate avenue to obtain Montana first-time homebuyer rewards. Through the MCC program in Montana, a tax credit equaling 20% of annual mortgage interest up to $2,000 is granted. Despite an initial $500 application charge to Montana Housing and a potential $250 fee from your lender, the MCC can translate to sizable savings throughout loan repayments.

Local homebuyer assistance programs

This program provides another avenue of aid for first-time home buyers in Montana. The municipality of Billings supports initial homeowners through interest-free, payment-deferring loans extending up to $15000. Qualifying depends on fulfilling distinct earnings conditions, and these monies are allocated in sequential order of application (on a first-come, first-serve basis).

FHA Loan

FHA loans in Montana, supported by the Federal Housing Administration, offer homeowners greater flexibility with minimum requirements. Borrowers need only a 580 credit score and a 3.5 percent down payment.

VA Loan

VA loans, assured by the Department of Veterans Affairs, are highly beneficial for active military personnel, veterans, and their surviving partners.

USDA Loan

One can consider USDA loans in Montana that require nothing at closing but have strict location limitations. Applicants must buy in designated rural areas while meeting administrative income standards.

HomeReady and Home Possible

First-time buyers have additional options through the Fannie Mae and Freddie Mac programs. HomeReady and Home Possible need just 3 percent down, making the dream of ownership attainable for more people.

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