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NeighborWorks Montana 20+ Community Second

NeighborWorks Montana · Montana

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See what you qualify forOfficial program site →
Assistance

20%

Of the purchase price, as the program sets it

Income limit

150% AMI

Of area median income; varies by county and household size

Repayment

Repayable

Repaid on the terms set by NeighborWorks Montana

What is NeighborWorks Montana 20+ Community Second?

NeighborWorks Montana 20+ Community Second is a second mortgage for homebuyers in Montana, administered by NeighborWorks Montana.

  • Amortizing community second mortgage that brings the first mortgage to 80% LTV, eliminating mortgage insurance. Available statewide except Cascade County. Minimum $10,000; 30-year term; rate is 2.00% over first mortgage rate; income up to 150% AMI; no FTHB requirement.
  • Eliminates PMI by covering 20%+ of purchase price.
  • No first-time homebuyer requirement.
  • 150% AMI limit.
  • Statewide coverage.
  • Funding comes from NeighborWorks Montana.

How much assistance does it provide?

NeighborWorks Montana 20+ Community Second provides assistance worth 20% of the purchase price, as set by the program.

  • Buyer contribution: Borrowers must contribute 1.00% of purchase price with minimum $1,000 from own funds.
  • The program can be combined with Montana Board of Housing first mortgage products.
  • Amounts are the program's published maximums, not an offer — NeighborWorks Montana determines any individual award.

Do you have to pay it back?

NeighborWorks Montana 20+ Community Second is a second mortgage and is repaid under the terms set by NeighborWorks Montana.

  • Repayment is triggered by Sale, no longer primary residence, death, or in some cases 1st mortgage refinance.
  • The assistance is recorded in 2nd position.
  • Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

NeighborWorks Montana 20+ Community Second is open to buyers who will live in the home as their primary residence.

The program requires

  • The home is occupied as a primary residence
  • On credit: Middle score of 640 unless valid compensating factors
  • A completed homebuyer education course, through NeighborWorks Montana approved homebuyer education class
  • DRAFT (dpa-gap-finder 2026-06-13): pending review. Non-occupying co-borrowers not permitted; total household assets cannot exceed $100,000; borrower cannot own residential rental property; ACH payment required; max DTI 32/42; CLTV max 105%; not assumable

The program excludes

  • Households above 150% of area median income

These are the program's own published rules, not a decision about any individual — the administering agency and a lender determine who actually qualifies.

What are the income limits?

NeighborWorks Montana 20+ Community Second limits household income to 150% of the area median income, which varies by county and household size.

  • The limit applies to total household income, not only the borrower’s.
  • The program lists a maximum household size of 8.
  • 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?

NeighborWorks Montana 20+ Community Second caps the purchase price as follows: Limits only as defined by first mortgage loan.

  • Eligible property types include Single Family, Manufactured, Condo, Townhouse, PUD, Duplex, and ADU.
  • New construction is eligible.
  • Manufactured homes are eligible.

Where does it apply?

NeighborWorks Montana 20+ Community Second serves buyers purchasing anywhere in Montana.

  • The program targets specific areas: Statewide Montana except Cascade County (served by NeighborWorks Great Falls).

How do you apply?

Applications for NeighborWorks Montana 20+ Community Second go through NeighborWorks Montana, which publishes the current terms and the application steps on its own site.

  1. Take a homebuyer education course

    Required by the program, through NeighborWorks Montana approved homebuyer education class.

  2. Contact NeighborWorks Montana to reserve funds

    Funds are reserved through NWMT Lender Portal, and are subject to availability.

  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.

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