Program Updates for Lenders

Recent Montana Housing updates and program announcement memos for lenders are archived below.

September 29,2021 - 80% Combined Prog revisions and other reminders

We have recently implemented changes to the MT Housing 80% Combined Program Terms and Conditions, ratio requirements have been updated to better pair with the 20% loan program providers.

Please remember for loans that closed on or after September 1st our tax service fee has increased to $73.00.  This will affect all loans going forward.  If you haven’t already, be sure to update your origination process to accommodate this change. 

A Community Land Trust (CLT) training module has been added to our online training library on the Montana Housing Website.  Please take this training and contact our staff with questions before closing a loan for a land trust property that will be financed by Montana Housing.

When originating loans in either of the Montana Housing Down Payment Assistance Programs, MERS cannot be used on the DPA Loan, these loans must be assigned to Montana Board of Housing.

Montana Housing continues to see Notes with incorrect loan amounts and maturity dates.  Please be sure these documents are correct and final prior to having the borrower sign at closing, corrections after the fact are time consuming and slow down the purchase of the loans. Also, be sure to inform staff if the final loan amount changes and no longer matches the amount that was initially reserved so the reservation can be updated in our system.

When stacking a purchase package for submission to Montana Housing, be sure the documents are stacked in the order they are listed on the Submission Voucher and be sure the top and bottom sections of the Loan Submission Vouchers are filled out and signed. 

Thank you to all our participating lenders for timely submission of your recertification documents, and much appreciation for your partnership over this past Summer – we look forward to our continued partnership through this year and beyond!


April 30, 2021 - Montana Housing Income Limits Update

By popular demand, new income limits have been calculated for the Montana Housing bond programs.  The IRS released their latest rule earlier this month and attached is the Quick Reference Guide which includes the 2021 income limits and program matrixes.  Our system has been updated to reflect these changes and they are available to start to use today.
Some program reminders:

Please remember discount points are not allowed, be sure not to include them on the CDs
Be sure that ALL sections of the Purchase Submission Voucher are completed – including the bottom section with the appraisal, HOA dues (if applicable), signature, etc.

The MT Veteran’s Home Loan Program has funds available for your homebuyer.  This program provides first mortgage funds to Montana residents who are serving or have served in the Montana National Guard or in the national armed forces and reserves. As you know, it has an interest rate that is much lower than the regular bond program and the program has no income or purchase price limits.  There is a loan limit, which has also increased and is now $296,380 statewide.

Montana Housing staff are always available to assist with any questions.

  • Charlie Brown, Program Supervisor, chbrown@mt.gov, 406-841-2850  
  • Julie Hope, Training and Development Specialist, jhope@mt.gov, 406-841-2851
  • Jim Neary, Loan Program Specialist, james.neary@mt.gov, 406-841-2853 
  • Kinsey Super, Loan Program Specialist, kinsey.super@mt.gov, 406-841-2847
Our website has all program information including Terms and Conditions, loan program parameters and up to date interest rates: Housing.mt.gov under the Lenders Section.
We hope you’re all doing well and enjoying the Montana Spring weather we’re having!

February 4, 2021 - Rate Decrease Memo

In anticipation of favorable rates on an upcoming sale of bonds, we are able to lower the rate for MT Housing’s Regular Bond Program to 2.50%.  This new rate will take effect immediately!!! 
The Set-aside Rate will drop to 2.25%.

This rate will also affect the down payment assistance programs (MBOH + and Bond Advantage), both are now 2.75%.

Thanks for all your help working with staff to complete our pipeline of loans and submitting final documents as requested.  Please remember to continue to check our Lender Online System regarding missing documents, conditions and to-follow documents related to loans you’ve sold to MT Housing.  The loan purchase process isn’t complete until all conditions have been resolved.  To-follow documents are due no later than 90 days after the purchase of a loan, fees may be imposed for documents not received in a timely manner.

Also remember to endorse your notes to Montana Board of Housing or Montana Board of Investments (for MT Vet Program Loans).  We have more and more notes coming in without an endorsement.

We truly appreciate your help promoting our program and look forward to working more closely as permitted.  Thanks for your partnership!!


December 17, 2020 - MT Housing Update and Holiday Greeting

Happy Holidays!

A few end of the year things to remember:

We still have awesome rates with MT Housing’s Regular Bond Program Rate at 2.75%.  The down payment assistance programs (MBOH + and Bond Advantage) are at 3.00% and the set-aside rate is at a very low 2.50%.  Please remember to utilize this rate whenever using programs listed on our website including Home$tart Funds, NWMT, City of Billings, and HRDC Programs.
Community Land Trusts continue to be a popular program in high cost areas.  Whenever working with these CLT’s, be sure to check our website for our Terms and Conditions, this program has some special requirements.  Work with Montana Housing and CLT staff prior to closing to ensure all documents are completed correctly and recorded properly.  New trainings on our website will be available soon!

Rural Development (RD) has issued announcements lately regarding their availability of funds to guarantee loans.  Montana Housing will work with lenders and temporarily accept Conditional Commitments issued from RD at the time of funding, with the Loan Note Guarantee (LNG) being a “to-follow” final document.  This is not without risk, if a LNG can’t be obtained once RD funding is restored, the lender would be liable to re-purchase the loan.  This has never occurred and we have confidence in RD’s ability to guarantee all loans purchased.

A reminder that the MT Veteran’s Home Loan Program does have funding off and on so please keep that low interest rate option in mind for Montana’s qualifying veterans.  The loan limit is different than the regular program and these are sold to the Board of Investments, so they differ in some major ways from our MBOH Programs.  Be sure to inform MBOH Staff if any loan amounts change immediately because of funding limitations.

Please be sure to complete any Mortgage Credit Certificates (MCC’s) as soon as you can for this year.  We don’t want a bunch coming in at the last minute – especially since we’ll have limited staff the last week of the year.  Pay attention to email replies and phone messages to determine how long a staff member may be out.  I’ll include a list of staff so that you can get quick replies when the Specialist you call is out of the office.

Staff list includes:

  • Vicki Bauer, Program Manager, vibauer@mt.gov, 406-841-2849
  • Charlie Brown, Loan Program Supervisor, chbrown@mt.gov, 406-841-2850
  • Julie Hope, Training and Development Specialist, jhope@mt.gov, 406-841-2851
  • Jim Neary, Loan Program Specialist, James.Neary@mt.gov, 406-841-2853
  • Kinsey Super, Loan Program Specialist, Kinsey.Super@mt.gov, 406-841-2847
  • Doug Jensen, Default Specialist, DoJensen@mt.gov, 406-841-2854


We’re so thankful to have you all as partners and look forward to continued success with you in 2021!


September 17, 2020 - Rate Decrease

The decision was made to decrease MT Housing’s Regular Bond Program Rate to 3.00%.  This new rate will take effect immediately!!! The Set-aside Rate will drop to 2.75%.  This rate will also affect the down payment assistance programs (MBOH + and Bond Advantage).  They are now 3.25%.

Please remember to send purchase files as completely as possible and stacked in the proper order.  This allows us to complete the review process and have loans purchased quickly – which is what we all strive for!

We hope you’re all safe and well.  Enjoy your Fall and thank you for your partnership!


July 30, 2020 - Rate Decrease

The decision was made to decrease MT Housing’s Regular Bond Program Rate to 3.25%.  This new rate will take effect immediately!!!  The Set-aside Rate will drop to 3.00%.  This rate will also affect the down payment assistance programs (MBOH + and Bond Advantage).  They are now 3.50%.

As you package loans for MT Housing, please remember to make certain the submission voucher is the first item in our purchase package and that the order of the documents is correct – this is vitally important to ensure loans are reviewed and purchased on a timely basis.

Thanks for all your help working through the remote work issues and helping the borrowers of Montana attain their dreams of homeownership.  We all hope you’re enjoying your Summer!


June 8, 2020 - Montana Housing Rate Decrease

Good Morning,  

Effective immediately the rates for Montana Housing loan programs have gone down.  The rate for the Regular Bond Program is now set at 3.50%,  the rate for set-aside loans has dropped to 3.25% and the rate for both down payment assistance programs (MBOH + and Bond Advantage) is now 3.75%.

We want to remind lenders that Montana Housing’s Set-aside Loan Program is designed to assist borrowers earning up to 80% of median income who receive down payment assistance from specific sources or special programs approved by our Board.  If your borrower is using Home$tart, Dream Makers Grant Funds, HOME funds from an HRDC or NeighborWorks, etc. they may be eligible for this lower rate first mortgage.  Check our website HOUSING.MT.GOV to see all approved Set-aside partners.

Also, title insurance is not required on MBOH Plus and Bond Advantage DPA loans, since they can only be paired with a Montana Housing first mortgage.

There is no interim servicing allowed for loans sold to Montana Housing.  Please instruct borrowers to make their first and all subsequent payments to Montana Housing Loan Servicing.  Please DO NOT pay FHA MIP or property taxes after the loan is closed, these will be paid by our loan servicing department.

Copies of the recorded Deeds of Trust are required as part of the purchase package for a loan to be funded.  Please do not submit the purchase package until the recorded documents are available and can be included.

We need to receive 2019 tax returns when 3 years of returns are required in a purchase package.  If a borrower has not filed their 2019 taxes, they can be “To Follow” documents since the deadline for 2019 tax returns has been extended.

Thanks to all our partners for helping Montanans become homeowners.


May 19, 2020 - Montana Housing Updated Income and Purchase Price Limits

The new 2020 Income and Purchase Price Limits were established and approved by the Board today.  They are effective immediately for any loans that close today and going forward.


May 8, 2020 - Montana Housing Regular Bond Program Rate Decrease

Due to favorable rates on the recent sale of bonds, we are able to lower the rate for MT Housing’s Regular Bond Program to 3.75%.  This new rate will take effect immediately!!! The Set-aside Rate will drop to 3.50%.  This rate will also affect the down payment assistance programs (MBOH + and Bond Advantage), both are now 4.00%. 

Thanks for all your help working with the borrowers of Montana and helping them overcome the barriers in place during these trying times.

Please remember to continue to check our Lender Online System regarding missing documents, conditions and to-follow documents related to loans you’ve sold to MT Housing.  The loan purchase process isn’t complete until all conditions have been resolved.  To-follow documents are due no later than 90 days after the purchase of a loan, fees may be imposed for documents not received in a timely manner.