MBOH Plus 0% Deferred Down Payment Assistance Program

What is MBOH Plus 0% Deferred Down Payment Assistance Program?

MBOH Plus 0% Deferred Down Payment Assistance Program is a deferred second loan for homebuyers in Statewide, Montana.

• MBOH 0% deferred soft second mortgage of up to 5% of sales price (max $15,000) with no monthly payments; full balance due on sale, refinance, payoff, or non-owner-occupancy. Lower-income alternative to Bond Advantage. Statewide.
• MBOH Plus is the Montana Board of Housing's 0% deferred-payment soft second mortgage paired with an MBOH Regular Bond Program first mortgage. Eligible homebuyers receive a 0% interest soft second of up to 5% of the sales price, maximum $15,000 (minimum $1,500), with NO monthly payments. The full balance is due upon refinance, payoff of the first mortgage, sale, transfer, or non-owner-occupancy. MBOH Plus is targeted at lower-income borrowers than Bond Advantage and carries lower household income caps ($80,000 1-2 person / $90,000 3+ person statewide). Funds may be used for down payment and closing costs.
• Funding comes from State and Bond.

How much assistance does it provide?

MBOH Plus 0% Deferred Down Payment Assistance Program offers up to $15,000 in assistance.

• The program asks buyers to contribute $1,000 minimum borrower investment (may be gifted).
• Amounts are the program's published maximums, not an offer — the administering agency determines any individual award.

Do you have to pay it back?

MBOH Plus 0% Deferred Down Payment 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 refinance, payoff of first mortgage, sale, transfer of title, or non-owner-occupancy. No monthly payments during the life of the first mortgage.
• 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?

MBOH Plus 0% Deferred Down Payment 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?

MBOH Plus 0% Deferred Down Payment Assistance Program limits household income to $90,000.

• 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?

MBOH Plus 0% Deferred Down Payment Assistance Program 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?

MBOH Plus 0% Deferred Down Payment Assistance Program 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?

MBOH Plus 0% Deferred Down Payment Assistance Program 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 purchase price limits.

How do you apply?

Applications for MBOH Plus 0% Deferred Down Payment 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 MBOH-approved homebuyer education provider (NeighborWorks Montana, HRDC, NWGF, Framework, eHome America, or HUD-approved counseling agency)..

2. 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. 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.