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Bond Advantage DPA

Statewide, Montana

Last verified
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Assistance

5%

Of the purchase price, as the program sets it

Income limit

$156,377

The household income limit the program publishes

Price cap

$783,192

Highest purchase price the program allows

Repayment

Deferred

No payments until the home is sold or refinanced

What is Bond Advantage DPA?

Bond Advantage DPA is a deferred second loan for homebuyers in Statewide, Montana.

  • MBOH bond-funded 15-year amortizing second mortgage of up to 5% of sales price (max $15,000) at the same fixed rate as the MBOH Regular Bond first mortgage. 620 FICO, 45% DTI, $1,000 borrower contribution. Statewide.
  • Bond Advantage DPA is the Montana Board of Housing's bond-funded amortizing second mortgage paired with an MBOH Regular Bond Program first mortgage. Eligible homebuyers receive a 15-year amortizing second mortgage of up to 5% of the sales price, with a maximum of $15,000 (and a minimum of $1,500). The second mortgage carries the same fixed interest rate as the first mortgage (rate depends on borrower credit score.
  • effective June 13, 2025 the Regular Bond rate was 5.625% / DPA rate 5.875% per MBOH rate sheet). Borrowers must provide a minimum $1,000 cash investment in the purchase (which can be gifted). Funds may be used for down payment and closing costs.
  • Funding comes from State and Bond.

How much assistance does it provide?

Bond Advantage DPA provides assistance worth 5% of the purchase price, as set by the program.

  • The program asks buyers to contribute $1,000 minimum borrower investment (may be gifted). Bond Advantage DPA + first-mortgage product (3.5% FHA, 0% VA/USDA, 3% conventional) typically covers all required cash to close.
  • Amounts are the program's published maximums, not an offer — the administering agency determines any individual award.

Do you have to pay it back?

Bond Advantage DPA is deferred, so no payments are due until the home is sold, refinanced, or the first mortgage is paid off.

  • Repayment is triggered by 15-year amortizing monthly payments. Balance due on sale, refinance, transfer of title, or non-owner-occupancy.
  • The assistance is recorded in 2nd Lien position.
  • Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

Bond Advantage DPA is open to first-time homebuyers and buyers who will live in the home as their primary residence.

The program requires

  • First-time homebuyer — with exceptions: Federally designated targeted census tracts and honorably discharged veterans waive the first-time-homebuyer requirement.
  • The home is occupied as a primary residence
  • On credit: 620 minimum representative mid-FICO across all MBOH bond programs.
  • A completed homebuyer education course, through MBOH-approved homebuyer education provider (NeighborWorks Montana, HRDC, NWGF, Framework, eHome America, or HUD-approved counseling agency).
  • Residency: Property must be located in Montana and serve as borrower's principal residence.
  • Citizenship or immigration status: U.S. citizen, permanent resident alien, or qualifying non-permanent resident alien per first-mortgage product overlays.
  • Must qualify for and be paired with an MBOH Regular Bond Program first mortgage. First-time homebuyer required (waived in federally targeted census tracts and for honorably discharged veterans). Owner-occupied principal residence. Income within MBOH Regular Bond limits ($97,335 1-2p non-targeted up to $156,377 3+p targeted by county). Acquisition price within MBOH limits ($544,232 non-targeted / $783,192 targeted per 2025-2026 schedule). 620 mid-FICO minimum. 45% maximum DTI. $1,000 minimum borrower contribution (giftable). MBOH-approved homebuyer education required.

The program excludes

  • Purchases above the $783,192 price cap
  • Households above $156,377

These are the program's own published rules, not a decision about any individual — the administering agency and a lender determine who actually qualifies.

What are the income limits?

Bond Advantage DPA limits household income to $156,377.

  • The limit applies to total household income, not only the borrower’s.
  • Area median income figures are published by HUD and updated annually, so check the current table for the county before relying on a number.

What kind of home can it be used for?

Bond Advantage DPA caps the purchase price at $783,192.

  • Eligible property types include Single-family detached, condominium, townhouse, PUD and manufactured home on permanent foundation per servicer overlays.
  • New construction is eligible.
  • Manufactured homes are eligible.

Is there eligibility for specific groups?

Bond Advantage DPA names veterans, active-duty service members, reservists and National Guard members, and surviving spouses among the groups it serves.

  • Being named here means the program mentions the group, not that membership alone qualifies an applicant — the rest of the eligibility rules still apply.

Where does it apply?

Bond Advantage DPA serves buyers purchasing in Statewide, Montana.

  • The program targets specific areas: Federally designated IRS targeted census tracts (per Section 143) and Qualified Census Tracts where MBOH waives the FTHB requirement and applies higher income / purchase price limits.

How do you apply?

Applications for Bond Advantage DPA go through the administering agency, which publishes the current terms and the application steps on its own site.

  1. Take a homebuyer education course

    Required by the program, through MBOH-approved homebuyer education provider (NeighborWorks Montana, HRDC, NWGF, Framework, eHome America, or HUD-approved counseling agency)..

  2. Contact the administering agency to reserve funds

    Funds are reserved through Reserved by approved participating lender via MBOH Lender Online portal at time of rate lock., and are subject to availability.

  3. Work with a lender who handles the program

    Hey Prescott is not a lender and does not accept applications; this page describes the program so a buyer can take it to a lender or housing counselor.

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