Who is an Eligible Veteran?
Eligible borrowers can either be serving, or have served in eligible military service. If no longer active duty, discharge must be honorable or general (not dishonorable).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.
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 Montana Board of Housing-approved homebuyer education class
- 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 Montana Board of Housing periodically
- If home ceases to be primary residence, Borrowers will pay off the loan within 12 months (refinance or sale of property)
- Montana Board of Housing may grant extensions to the 12 month period based on market factors and borrower’s circumstances
- Purchase price limit is $242,795 (95% of the Montana Board of Housing's statewide average).
- 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 de-titled 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.
- 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 Montana Board of Housing
- Monthly payments include taxes and insurance for escrow account
The first step is to complete an Montana Board of Housing-approved homebuyer education class.
Applications for loans are made through an originating lender certified for the program by Montana Board of Housing.