Montana Veterans' Home Loan Program
Lender Information:
These loans are administered by the Montana Board of Housing (MBOH) and purchased by the Montana Board of Investments (BOI).
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Lender Eligibility
MBOH-approved current participating lender institution
Individual originator has completed Montana Veteran Home Loan Program Certification on-line course
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There is a ten-loan limit per lending institution until $10 million in loans has been reserved or purchased in the Program.
Borrower Eligibility:
Montana National Guard
Federal reserve under Title 10 of the US Code
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.
Additional Borrower Criteria:
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Resident of Montana (filed income tax in Montana in previous year) First-time homebuyer (no ownership in home for past three years as shown on federal taxes) Have certificate of completion for an Commit a minimum of $2,500 of their own cash into the purchase transaction, which must be applied towards the loan amount There are no income or asset limitations Maintain home as their primary residence |
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Primary Residence Requirement
Borrowers submit documentation of 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
Property Eligibility
Residential real property in Montana purchased under the Montana Small Tract Financing Act
Either existing home or new construction
Post-1976 detitled manufactured homes on permanent foundations are eligible if insured by FHA, VA, or HUD 184.
Loan Criteria
Interest rate and available funds (updated every two weeks)
First lien mortgage under the Montana Small Tract Financing Act
Must be insured by FHA, VA, or HUD 184
Loans are purchased by Montana Board of Investments (BOI) without recourse
Lenders allowed to charge up to 2% lender fees to borrower/seller
Servicing is purchased by MBOH
Servicing Release Premium of 75 basis points paid by MBOH once servicing package complete
Reservation Process
Disclosure and Notice of Primary Residence Requirement
Veteran Program Reservation Request
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NOTICE: MBOH will only accept reservations from individual originators who have completed Program certification (see information above). MBOH will not accept additional reservations from a lending institution that has reached its 10 loan limit until $10 million of loans |
Purchase Process
