Set-aside Programs

Montana Housing’s Set-aside Loan Program is designed to assist borrowers earning on-average 80% of median income who receive down payment assistance from sources approved by the Montana Board of Housing.

These buyers can afford a monthly payment, but often struggle to save enough money for a down payment and to pay closing costs or they face an "affordability gap," the difference between what a buyer can afford to purchase and the cost of homes in their area.

Montana Housing partners with cities, counties, non-profits, and other resources to assist a borrower with a home purchase. A participating lender will qualify the homebuyer for a Montana Housing loan for most of the purchase price, and a non-profit will provide the balance. The difference can be as little as $1,500 or as much as $45,000, depending on location and the needs of the buyer. Borrowers must qualify for a Regular Bond Program loan, however, the set-aside interest rate is lower. Homebuyer Education is required.

Approved Set-aside Programs:

  • NeighborWorks Montana 2nd Mortgage
  • CAP NWMT Kalispell Community Land Trust
  • Missoula Combined HRDC XI HOME Funds
  • Bozeman District IX HOME Funds
  • Home$tart Program (FHLB)
  • HUD Section 184 Home Loan
  • Sparrow Homes
  • Dream Makers Matching Grant Funds (Veterans Only)
  • City of Billings First Time Homebuyer Program
  • New Construction Lot Refinance Program
  • Montana Street Homes CLT

Regular Bond and Set-aside Program Terms and Conditions