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Down Payment Assistance

Bridging the "Affordability Gap"

Many people face challenges to home ownership. Maybe you are caught in a renters trap you can afford a house payment, but are having a hard time saving funds for down payment and closing costs. Or, you may face an "affordability gap" the amount of a loan you qualify for isn't high enough to purchase a home in your area.

MBOH partners with several groups statewide to address these challenges. Our partners include cities, counties, non-profits, lenders, employers and others who are willing to step in and help make home ownership happen. These housing partners apply to MBOH for funding, called set-aside funds. How it works is, you take out a loan from a local lender for what you qualify for, and the housing partner loans you the balance needed to purchase a home. The interest rate on our set-aside loans is currently 5.5%, which helps your purchasing power go farther. The various partners are able to contribute anywhere from $1,500 to $40,000, depending on your need, location, and their program limitations. The partner's help can be a second loan that requires payments, or the payment on these second loans may be deferred until you sell your home. It is important for you to know that these are loans, and not grants. Down the road when you sell your home, the non-profit gets paid off, and can use that money again to help someone else buy a home.

Each of these special programs has their own guidelines as to income limits and other special requirements. All our housing partners require homebuyer education classes prior to committing their help, and information about local programs is given out at each class. A listing of upcoming classes can be found

Application for these programs is made through our network of MBOH lenders. Your loan officer will qualify you for the loan, and coordinate the necessary down payment assistance with our housing partners.

Name of Program Geographic Area
Score Advantage DPA Program Statewide
First Time Home Buyer Savings Account Program Statewide
NeighborWorks Montana Statewide
HRDC District IX Bozeman, Gallatin, Madison, and Park County
HRDC Distric XI Missoula City, Ravalli, Missoula, and Mineral County
Clark Fork Commons Missoula City - Northside neighborhood
City of Billings City of Billings
HRDC VI - Set-aside Fergus, Musselshell, Petroleum, Golden, Valley, Judith Basin, Wheatland County
GR8 Hope Lewis and Clark and Jefferson County
Glacier Affordable Housing Foundation Flathead, Lincoln, and Sanders County