Educated homeowners are better prepared to navigate the home buying process, live in their homes longer and are less likely to foreclose. That’s why Montana Housing programs require homebuyer education, plus, we recommend all new homebuyers take a class.
Montana Housing programs require homebuyer education unless the homebuyer qualifies for a waiver. Classes are offered through NeighborWorks Montana which provides homebuyer education through a network of non-profit, governmental and private sector agencies that specialize in first-time homebuyer services and loan products.
NeighborWorks Montana network members offer in-depth classes on all aspects of homeownership to help homebuyers make the right choice in a home and a loan. All classes meet U.S. Department of Housing and Urban Development (HUD) requirements and are taught by National Center for Homeownership Education and Counseling Certified educators. Classes can be found on the NeighborWorks website.
Topics covered in these classes include:
- Assessing Readiness to Buy a Home
- Budgeting and Credit
- Financing a Home
- Selecting a Home
- Maintaining a Home and Finances
While online education cannot entirely replicate the experience of an in-person class, NeighborWorks does offer online homebuyer education options: eHomeAmerica and Frameworks. Once a borrower has completed the online class and before they receive their homebuyer education certificate, they must complete a one-time, face to face session with a HUD approved housing counselor. Contact NeighborWorks Montana by email or call 406.604.4540 for more information.
Montana Housing programs require Homebuyer Education for:
- All borrowers receiving loans through Set-aside programs
- All borrowers who don’t have established credit
- All borrowers in the Regular Bond Loan Program, unless they meet the criteria for an *exception (below)
- All borrowers using the Montana Veterans’ Home Loan Program
*Exceptions to the requirement for Homebuyer Education will be given for borrowers who meet all three of the following:
- Middle Credit Score of 680 or higher
- Front End Ratio of 31% or less
- Back End Ratio of 41% or less
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