Home Deferred Mortgage

What is Home Deferred Mortgage?

Home Deferred Mortgage is a deferred second loan for homebuyers in Great Falls, Montana.

• NWGF 0% deferred second mortgage (typically $2,500-$25,000, up to $50,000) for FTHBs at <=80% AMI in Cascade County. HUD HOME-funded.
• NWGF's HOME Deferred Mortgage provides 0% interest deferred loans (typically $2,500-$25,000, up to $50,000 in some cases) to provide down payment and closing cost assistance or to fill the gap between the total financing needed for a home and the amount the first-mortgage lender will lend. NO interest, NO monthly payments. Full balance is due when the borrower refinances, pays off the first mortgage, or sells the home. Available to households with income at or below 80% Area Median Income (AMI) for Cascade County, based on family size. Funded primarily through HUD HOME and NWGF / NeighborWorks America capital. Pairs with MBOH or NWGF/NWMT first mortgage.
• Funding comes from Federal and HOME.

Do you have to pay it back?

Home Deferred Mortgage 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 when borrower refinances, pays off first mortgage, sells, or vacates as primary residence. 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?

Home Deferred Mortgage is open to first-time homebuyers and buyers who will live in the home as their primary residence.

What are the income limits?

Home Deferred Mortgage limits household income to 80% of the area median income, which varies by county and household size.

• At or below 80% AMI Cascade County per HUD MFI by family size; per seed: $47,050 (1p) up to $88,750 (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?

Home Deferred Mortgage caps the purchase price as follows: Per first-mortgage product.

• Eligible property types include Single-family detached, condominium, townhouse, PUD per NWGF underwriting.
• New construction is eligible.
• Manufactured homes are eligible.

Is there eligibility for specific groups?

Home Deferred Mortgage names 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?

Home Deferred Mortgage serves buyers purchasing in Great Falls, Montana.

How do you apply?

Applications for Home Deferred Mortgage 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 NWGF Homebuyer Education ($75 per household) required (HUD-approved)..

2. 2

   Contact the administering agency to reserve funds

   Funds are reserved through Direct application to NWGF; subject to funding availability., 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.