80% Combined Program

Montana Housing offers loans statewide to borrowers using insurance or guarantees by the Federal Housing Administration (FHA), the Veteran’s Administration (VA) or Rural Development (RD). Due to geographic and underwriting criteria, some transactions are limited to loans insured by FHA. Recent pricing adjustments to FHA loans have created barriers to homeownership, primarily in urban areas.

The purpose of this program is to provide borrowers eligible for Montana Housing financing under the 80% Combined Program (Bond Program) with an alternative to an FHA-insured loan. The 80% Combined Program (80% combined, or the Program), is a first-position mortgage loan that is paired with a second loan offered by a partner non-profit organization (i.e., NeighborWorks Montana, or one of the Human Resource Development Councils).

By partnering with a non-profit, Montana Housing can provide loans at 80% or less Loan-To-Value (LTV), eliminating the need for mortgage insurance. The 80% Combined Program is available statewide to buyers who qualify under the MBOH 80% Combined Program requirements and the requirements of the non-profit providing the secondary financing.


Program Offers

  • NO monthly mortgage insurance payment
  • 1st Mortgage is 80% of purchase price
  • 2nd Mortgage is 20% of purchase price
  • Serviced locally by lender or the Board of Housing

Borrower Eligibility

  • Must be a first time homebuyer
    • Not owned a principal residence any time in past three years
    • Homeownership requirement not applicable in certain targeted areas
  • Counties: Blaine, Sanders, Deer Lodge, Silver Bow, Flathead, Mineral, Missoula & Hill
  • Census Tracts: Gallatin County 6 & 11.01 and Lincoln County 2
  • City of Great Falls
  • Must be at or below annual household Income limits
    • Includes ALL people 18+ years expected to live in residence
  •  Buy/Sell amount cannot exceed Purchase Price Limits

Program Requirements

  • Purchase loans only (No refinances)
  • Homebuyer Education REQUIRED to participate
  • 1% of purchase price borrower investment (Min. $1,000)
  • NO cash back at closing; principal reduction only
  • Owner-occupancy required for life of loan
    • no more than 15% of the total area of the residence may be used in a trade or business.
  • Hazard Insurance deductibles required $1,500 or 1% of dwelling coverage
    • Except Wind/Hail can be $2,500 or 1%
  • Recapture tax applies

Property Requirements

  • Single family, “fee simple” residential property
  • Attached land of residence must maintain basic livability & not provide income source
  • Manufactured homes eligible if Post-1976, de-titled & on a permanent foundation
    • Appearance & functionality of a stick build house
  • Condominiums & Townhomes in multiple dwelling unit structures allowed
  • New construction allowed; property & improvements must be completed prior to closing


Additional Useful Information:

80% Combined Program Terms and Conditions

Frequently Asked Questions

First Time Homebuyer Education

MBOH Quick Reference Guide

Whole Loan Submission Voucher Details


Except as outlined above, all terms, conditions, definitions and program criteria applicable to the Regular Bond Program, set out in the Mortgage Purchase & Servicing Guide and the Terms & conditions for 2017 Programs will apply to loans originated under the MBOH 80% Combined Program. Additional resources not linked to on this page are available by contacting MBOH at 406-841-2840 and asking for a Program Specialist.



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301 S. PARK AVE, STE 240 | PO BOX 200528 | HELENA, MT 59620-0528 | P: 406.841.2840 | F: 406.841.2841 | TDD: 406.841.2702 | TOLL FREE: 800.761.6264