Montana Board of Housing 80% Combined Program

What is Montana Board of Housing 80% Combined Program?

Montana Board of Housing 80% Combined Program is a second mortgage for homebuyers in Statewide, Montana, administered by Montana Board of Housing (Montana Department of Commerce).

• The Montana Board of Housing 80% Combined Program offers eligible buyers an alternative to FHA financing: a 30-year, first-position mortgage at 80% Loan-To-Value paired with a 20% LTV second loan from a partnering nonprofit such as NeighborWorks Montana or a Human Resource Development Council. By keeping the first lien at 80% or less LTV, the structure eliminates the need for mortgage insurance. Purchase price and income limits apply and homebuyer education is required.
• Eliminates mortgage insurance (80% first lien).
• Pairs with nonprofit 20% second financing.
• Alternative to FHA-insured loans.
• Statewide availability.
• Funding comes from Montana Board of Housing first mortgage + nonprofit-provided secondary financing.

How much assistance does it provide?

Montana Board of Housing 80% Combined Program provides assistance worth 20% of the purchase price, as set by the program.

• Award tiers: 30-year first-position mortgage at 80% LTV from Montana Board of Housing paired with a 20% LTV second loan provided by a partnering nonprofit (NeighborWorks Montana or a Human Resource Development Council).
• The program can be combined with Partnering nonprofit (NeighborWorks Montana or Human Resource Development Council) secondary financing.
• Amounts are the program's published maximums, not an offer — Montana Board of Housing (Montana Department of Commerce) determines any individual award.

Do you have to pay it back?

Montana Board of Housing 80% Combined Program is a second mortgage and is repaid under the terms set by Montana Board of Housing (Montana Department of Commerce).

• The assistance is recorded in First (80% LTV) paired with a partner nonprofit second (20% LTV) position.
• Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

Montana Board of Housing 80% Combined Program is open to buyers who will live in the home as their primary residence.

What are the income limits?

Montana Board of Housing 80% Combined Program sets its income limit as follows: Montana Board of Housing purchase price and income limits apply (see Current Rates, Income and Purchase Price Limits page); plus the requirements of the nonprofit providing the secondary financing.

• 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.

Where does it apply?

Montana Board of Housing 80% Combined Program serves buyers purchasing in Statewide, Montana.

How do you apply?

Applications for Montana Board of Housing 80% Combined Program go through Montana Board of Housing (Montana Department of Commerce), 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 Montana Board of Housing-approved homebuyer education..

2. 2

   Contact Montana Board of Housing (Montana Department of Commerce) to reserve funds

   Funds are reserved with the provider 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.