HRDC's Road to Home Down Payment Assistance

What is HRDC's Road to Home Down Payment Assistance?

HRDC's Road to Home Down Payment Assistance is a deferred second loan for homebuyers in Bozeman, Montana.

• SW MT Community Housing Trust 0% deferred second mortgage for FTHBs in Gallatin/Park/Meagher counties; pairs with an MBOH first mortgage. Independent 501(c)(3) sister org to HRDC.
• The Road to Home Down Payment Assistance program is administered by the Southwest Montana Community Housing Trust (SW MT CHT) - a separate 501(c)(3) Community Land Trust originally incubated by HRDC and continuing as an HRDC partner organization. Provides 0% deferred-payment second mortgages to first-time homebuyers purchasing in Gallatin, Park, or Meagher counties. Loan amount sized to need.
• pairs with an MBOH Regular Bond first mortgage. 0% interest, no monthly payments.
• balance due on sale, refinance, payoff, or non-owner-occupancy. Borrower must contribute 1% of purchase price. Net Asset cap applies post-closing. Required SW MT CHT / HRDC Homebuyer Education. The proposed first-mortgage interest rate must be fixed for the entire term and cannot exceed the MBOH loan rate by more than 1.5 points.
• Funding comes from Federal and HOME.

Do you have to pay it back?

HRDC's Road to Home Down Payment Assistance 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, payoff of first mortgage, transfer, 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?

HRDC's Road to Home Down Payment Assistance is open to first-time homebuyers and buyers who will live in the home as their primary residence.

What are the income limits?

HRDC's Road to Home Down Payment Assistance 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) up to $115,150 (8p Gallatin County 80% AMI). Some workforce-housing tiers extend to 120% AMI.
• 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?

HRDC's Road to Home Down Payment Assistance caps the purchase price at $513,000.

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

Is there eligibility for specific groups?

HRDC's Road to Home Down Payment Assistance 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?

HRDC's Road to Home Down Payment Assistance serves buyers purchasing in Bozeman, Montana.

How do you apply?

Applications for HRDC's Road to Home Down Payment Assistance 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 SW MT CHT or HRDC-administered Homebuyer Education (HUD-approved curriculum, e.g., Framework or eHome America) plus 1:1 counseling..

2. 2

   Contact the administering agency to reserve funds

   Funds are reserved through Direct application to SW MT CHT; subject to funding availability and homebuyer 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.