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Montana Veterans Home Loan Program


The Montana Veterans Home Loan Program provides first mortgage funds to Montana residents who are serving or have served in the military through the federal armed services and the Montana National Guard.  The financing interest rate is 1% lower than market and assists veterans in purchasing their first home.  Please refer to the Montana Board of Investments policies regarding this program for more information. 

NOTE:  MERS is NOT allowed in this program! 

Borrower Information:

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 If no longer active duty, discharge must be honorable or general (not dishonorable).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

  Property Eligibility: 

  • 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.

Loan Criteria:

  • 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

Informational Flyer (06/06/16)

Application Process: 

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.

Lender Information:

"How to" upload documents in Lender Online!

Current Rates & Availability

Lender Training (Mandatory to participate)

Terms and Conditions (02/26/16)

Frequently Asked Questions

Informational Flier (Under Construction)

First Time Homebuyer Education

Loan Program Criteria

Lender Documents to Reserve a Montana Veterans' Home Loan Program Loan:

Borrower Stat Sheet

Disclosure and Notice of Primary Residence Requirement

Email a copy of the original, color appraisal to Julie Hope and Danyel Bauer.  (After two days, check status on Lender On Line)

Lender Documents to Close a Montana Veterans' Home Loan Program Loan:

Early Delinquency Counseling Form

Veteran Mortgagor’s Affidavit

Veteran Program Closing and Purchase Checklist  (05/25/17)

Veteran Program Rider to Deed of Trust

Send purchase package to:   Montana Board of Housing, P.O. Box 200528, Helena, MT 59620-0528


Frequently Asked Questions

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Yes. Refinancing of land as part of construction of a new home is permissible.

Yes. Documentation of the Montana residency requirement is required at loan reservation. Residency for initial qualification for the Program requires a copy of a filed Montana tax return showing full year of residence in Montana. If the borrower doesn’t have a Montana Tax return showing a full year of residence in Montana, additional documentation of residency will be required, such as a copy of a current Montana driver’s license and a copy of a current Montana vehicle registration.

No, co-signers do not meet the definition of "eligible applicant".

Yes.  Loans on manufactured homes that meet the following criteria are eligible:  double-wide or larger; 1976 or newer; and the foundation must be certified by a qualified architect or engineer as meeting FHA requirements, even if a VA-guaranteed loan is placed on the home.

Yes. These Veteran Program loans are funded with Coal Tax dollars, not bond funds. Only loans purchased with tax-exempt bond funds are restricted from having MCCs.

Yes, However, the borrower's investment must be demonstrated when lenders request a commitment of funds for the loan.

No. The Montana Veteran’s Program is designed to purchase single family residences that have full ownership of the land they sit on.

No, However, funds the borrower actually contributes are counted.  For example, if the borrower provides $1,666.67 to obtain $5,000 in down payment assistance under the Home$tart Program, $1,666.67 is used towards the $2,500 investment.

Any borrower in the program is free to use the FHA, VA, or HUD 184 programs for the mortgage insurance on a loan. There is no requirement that the borrower use a guarantee from the Veteran’s Administration.

No. The veteran’s $2,500 cash investment must be applied to the loan amount.

As stated in the Terms and Conditions, lenders are allowed to charge up to 2% origination fee to either the borrower or seller. This sum may be further limited, given criteria of either FHA, VA, or HUD-184. Montana Board of Investments purchases the loans at 100%, and does not provide additional lender compensation. Montana Board of Housing pays .75% service-release premium.

Yes, upon verification that the Veteran/applicant is not on title to the prior home.

No. The Veterans Program loans are sold to the Montana Board of Investments, which does not participate in MERS. All loans must be assigned to the Montana Board of Investments via recorded Assignments with the County Clerk and Recorder.

The maximum loan amount is the lesser of the purchase price or the appraised value of the property, further reduced by the veteran’s $2,500 cash investment.

No. The Montana Veterans’ Home Loan Program is funded by the permanent coal tax trust fund. The Montana Board of Investments is required by statute to invest funds in accordance with prudent expert principles. All loans in the program must receive "approve/eligible" or other similarly high response from automated underwriting; no manual underwriting or underwriting exceptions are allowed.

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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