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Montana Veterans' Home Loan Program
Borrower Information:
Brief Description:
Created by the 2011 Montana Legislature (sponsor: Sen. Larsen, Missoula), and funded by $15 million of the Coal Tax Trust Fund, this program is designed to assist Montana National Guard and federally-qualified eligible veterans achieve the American dream of owning and living in their own homes. The benefit of the program is a fixed-rate, 30 year mortgage loan at 1% lower than either the FNMA or MBOH posted interest rate. Loans are originated by MBOH-participating and program-certified lenders, purchased and held by the Montana Board of Investments, and serviced by the Montana Board of Housing.
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Who is an Eligible Veteran:Eligible borrowers can either be serving, or have served in eligible military service. If no longer serving, discharge must be honorable or general (not dishonorable).
Military service includes:
Montana National Guard
Federal reserve under Title 10 of the US Code Active Duty under Title 10 of the US Code Borrower may also be the surviving spouse of a deceased eligible veteran killed in the line of duty who has not remarried.
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Additional Borrower Criteria:
Resident of Montana (filed income tax in Montana for full previous year)
First-time homebuyer (no ownership in home for past three years as shown on federal taxes)
Have certificate of completion of MBOH-approved homebuyer education class
First-time homebuyer (no ownership in home for past three years as shown on federal taxes)
Have certificate of completion of MBOH-approved homebuyer education class
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Commit a minimum of $2,500 of their own cash into the purchase transaction; which must be applied to the loan amount.
There are no income or asset limitations
Maintain home as their primary residence
Primary Residence Requirement:Home is maintained as primary residence (home of record)
Borrower submit documentation of ongoing primary residence to MBOH periodically If home ceases to be primary residence, Borrowers will pay off the loan within 12 months (refinance or sale of property) MBOH may grant extensions to the 12 month period based on market factors and borrower’s circumstances
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Property Eligibility:
There is a limit to the cost of the home purchased: Purchase price limit
Home must be Montana residential real property financed under the Montana Small Tract Financing Act
Home can be either existing home or new construction; no condominiums can be financed
Post-1976 detitled manufactured homes on permanent foundations are eligible if insured by FHA, VA, or HUD 184.
Home must be Montana residential real property financed under the Montana Small Tract Financing Act
Home can be either existing home or new construction; no condominiums can be financed
Post-1976 detitled manufactured homes on permanent foundations are eligible if insured by FHA, VA, or HUD 184.
For a manufactured home, an engineering certificate is required to show that the foundation is certified for that site and for that particular home.
Loan Criteria:Current Interest rate and available funds (updated every two weeks)
30-year amortized fixed rate loan Must be first lien mortgage under the Montana Small Tract Financing Act Loan must be insured by FHA, VA, or HUD 184 Loans are purchased by Montana Board of Investments (BOI) Lenders allowed to charge up to 2% lender fees to borrower/seller Borrowers make monthly payments to MBOH
Monthly payments include taxes and insurance for escrow account
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Application Process:
The first step is to complete an MBOH-approved homebuyer education class.
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Applications for loans are made through an originating lender certified for the program by MBOH.
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