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The purpose of the Montana Housing Community Land Trust Mortgage Program (CLT) is to provide purchase money loans secured by a leasehold estate on property owned by a Community Land Trust. Community land trusts are created to preserve long-term affordable housing by building or purchasing homes in their communities, then leasing the land using a long-term ground lease to low- and moderate-income families at affordable monthly ground rents. By removing the cost of land associated with a home purchase, borrowers can purchase homes they can afford in high cost areas. Eligible community land trusts must be nonprofit organizations or public entities, such as state or local governments, counties, school districts, universities or colleges.

Program Offers

  • If over 80% LTV, loan insured or guaranteed by FHA, VA, RD or HUD-184
  • If under 80% LTV, Non-Insured option available; following Fannie Mae Guidelines
    • $1,000 Borrower investment required
  • 30 year, low fixed rate, fully amortized loan
  • Serviced locally by lender or Montana Housing
  • Montana Housing pays 1% of the origination fee to the lender

Borrower Eligibility

  • Must be a first time homebuyer
    • Not owned a principal residence any time in past three years
    • Homeownership requirement not applicable in 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)
  • NO cash back at closing; principal reduction only
  • Owner-occupancy required for life of loan
  • Hazard Insurance deductibles cannot exceed the greater of $1,500 or 1% of dwelling coverage
    • Except for Wind/Hail which cannot exceed the greater of $2,500 or 1%
  • IRS Recapture tax provisions apply

Property Requirements

  • Leasehold Estate held by community land trust ground lease must constitute real property
  • Ground lease must be valid, enforceable, and in full force and effect; no longer than 75 years
  • Appraised according to Fannie mae Community Land Trust Appraisal Requirements
  • No related community land trust ground lease occupancy and resale restrictions, covenants or agreements that "run with the land"
  • No existing mortgage loans/liens on the fee estate, except as may be permitted under MBOH Community Land Trust Ride 


Additional Useful Information:


CLT Terms & Conditions

Title & Recording Guidelines

First Time Homebuyer Education

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 and Servicing Agreement and the Terms and Conditions of the 2018 Homeownership Program .  Additional resources not linked to on this page are available by contacting Montana Housing at 406-841-2840 and asking for a Program Specialist.

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