Downpayment Assistance Program

What is Downpayment Assistance Program?

Downpayment Assistance Program is a deferred second loan for homebuyers in Bozeman, Montana.

• HRDC District IX 0% deferred second mortgage up to $20,000-$30,000 for FTHBs in Gallatin, Park, and Meagher counties. HUD HOME-funded with state/local match.
• HRDC's Downpayment Assistance Program provides 0% deferred-payment second mortgages of up to ~$20,000-$30,000 (program-year and funding-cycle dependent) to first-time homebuyers in Gallatin, Park, and Meagher counties (HRDC District IX service area). Funds may be applied to down payment and closing costs. 0% interest, no monthly payments.
• balance due on sale, refinance, transfer, or non-owner-occupancy. Borrower must contribute 1% of purchase price. Required HRDC Homebuyer Education + 1:1 financial counseling session. Program funded through HUD HOME Consortium funds passed through Montana Department of Commerce, plus state and local affordability sources.
• Funding comes from Federal and HOME.

Do you have to pay it back?

Downpayment Assistance Program is deferred, so no payments are due until the home is sold, refinanced, or the first mortgage is paid off.

• Repayment is triggered by Full balance due on sale, refinance, transfer of title, or non-owner-occupancy. No monthly payments.
• 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?

Downpayment Assistance Program is open to first-time homebuyers and buyers who will live in the home as their primary residence.

What are the income limits?

Downpayment Assistance Program limits household income to 120% of the area median income, which varies by county and household size.

• HUD HOME income limits for Gallatin, Park, Meagher counties; per seed: $48,100 (1p, 30% AMI) up to $115,150 (8p, 80% AMI Gallatin County). Some sub-tiers extend to 120% AMI (workforce housing).
• 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?

Downpayment Assistance Program caps the purchase price as follows: Per first-mortgage product (typically MBOH limits where paired with MBOH first mortgage).

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

Is there eligibility for specific groups?

Downpayment Assistance Program 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?

Downpayment Assistance Program serves buyers purchasing in Bozeman, Montana.

How do you apply?

Applications for Downpayment Assistance Program go through the administering agency, which publishes the current terms and the application steps on its own site.

1. 1

   Take a homebuyer education course

   Required by the program, through HRDC Homebuyer Education classes (HUD-approved) + 1:1 housing/financial counseling session required. Provided in-house at HRDC Bozeman..

2. 2

   Contact the administering agency to reserve funds

   Funds are reserved through Direct application to HRDC Bozeman; subject to funding availability and counseling/education completion., and are subject to availability.

3. 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.