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" where the amount of a loan you qualify for isn't high enough to purchase a home in your area.
The Montana Board of Housing (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. 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.
The interest rate on our set-aside loans is currently 3.125%.