First Time Home Buyer Loan Program

What is First Time Home Buyer Loan Program?

First Time Home Buyer Loan Program is a deferred second loan for homebuyers in Billings, Montana.

• City of Billings 0% deferred-payment second mortgage up to $15,000 for FTHB at <=80% AMI purchasing within Billings city limits. HUD HOME-funded.
• The City of Billings First Time Home Buyer Loan Program offers zero-interest, deferred-payment loans of up to $15,000 to assist low-income households purchase their first home within Billings city limits. Funds may be applied to down payment and closing costs. The loan is at 0% interest with no monthly payments.
• the full balance is due on sale, refinance, transfer, or when the home is no longer the borrower's primary residence (not put up for rent). Funded through HUD HOME / CDBG programs administered by the Billings Community Development Division. As of April 9, 2026, funding remains available on a first-come, first-served basis. Preference is given to applicants with families of five or more individuals and households that include a person with a disability.
• Funding comes from Federal and HOME.

Do you have to pay it back?

First Time Home Buyer Loan 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 when home is no longer borrower's primary residence (e.g., put up for rent).
• 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?

First Time Home Buyer Loan Program is open to first-time homebuyers and buyers who will live in the home as their primary residence.

What are the income limits?

First Time Home Buyer Loan Program limits household income to 80% of the area median income, which varies by county and household size.

• 80% AMI for Yellowstone County (Billings MSA) per HUD income limits. Per seed: $35,580 (1p) up to $89,400 (8p).
• The limit applies to total household income, not only the borrower&rsquo;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?

First Time Home Buyer Loan Program caps the purchase price at $262,000.

• Eligible property types include Single-family detached residentially zoned homes within City of Billings city limits.
• New construction is eligible.
• Manufactured homes are not eligible.

Is there eligibility for specific groups?

First Time Home Buyer Loan Program names veterans, active-duty service members, reservists and National Guard members, surviving spouses, and buyers with disabilities 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?

First Time Home Buyer Loan Program serves buyers purchasing in Billings, Montana.

How do you apply?

Applications for First Time Home Buyer Loan 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 HUD-approved homebuyer education required (NeighborWorks Montana, HRDC, NeighborWorks Great Falls, or other HUD-approved counseling agency)..

2. 2

   Contact the administering agency to reserve funds

   Funds are reserved through Direct application to City of Billings Community Development; first-come, first-served while funds last., 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.