NeighborWorks Montana HOME Down Payment & Closing Cost Assistance

What is NeighborWorks Montana HOME Down Payment & Closing Cost Assistance?

NeighborWorks Montana HOME Down Payment & Closing Cost Assistance is a deferred second loan for homebuyers in Statewide, Montana, administered by NeighborWorks Montana.

• NeighborWorks Montana provides federal HOME-funded down payment and closing cost second mortgages to fill the gap between total financing needed and the amount the first lender will lend, in counties not served by other HOME administrators. The primary tier offers $2,500-$25,000 (up to $40,000) at 0% interest with no payments for 15 years to buyers at or below 80% AMI. A second amortizing tier of $1,500-$10,000 serves households up to 125% AMI without a first-time-buyer requirement.
• 0% interest deferred for 15 years (Tier 1).
• Fills financing gap.
• Borrower can put in as little as 1%.
• Higher-income amortizing option available.
• Disabled-household and single-parent eligibility exceptions.
• Funding comes from Federal HOME Investment Partnerships Program funds.

How much assistance does it provide?

NeighborWorks Montana HOME Down Payment & Closing Cost Assistance offers between $2,500 and $40,000 in assistance.

• Award tiers: Tier 1 (HOME funds): $2,500-$25,000 (up to $40,000), 0% interest, no payments for 15 years, income at or below 80% AMI, must be first-time buyer/single parent/household with disabled individual. Tier 2 (higher-income amortizing): $1,500-$10,000 for households up to 125% AMI, not required to be first-time buyers, amortizing with monthly payments.
• 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 HOME Down Payment & Closing Cost Assistance is forgiven after 15 years, so a buyer who stays that long does not repay it.

• Repayment is triggered by Due in 15 years or when the borrower leaves or refinances the home (Tier 1, 0% deferred).
• The assistance is recorded in Second 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 HOME Down Payment & Closing Cost Assistance is open to first-time homebuyers and buyers who will live in the home as their primary residence.

What are the income limits?

NeighborWorks Montana HOME Down Payment & Closing Cost Assistance limits household income to 80% of the area median income, which varies by county and household size.

• Tier 1 (HOME): at or below 80% of county median income by family size. Tier 2: up to 125% of county median income by family size.
• 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.

Is there eligibility for specific groups?

NeighborWorks Montana HOME Down Payment & Closing Cost Assistance names buyers with disabilities 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?

NeighborWorks Montana HOME Down Payment & Closing Cost Assistance serves buyers purchasing in Statewide, Montana.

• The program targets specific areas: Counties/cities not served by other HOME-fund administrators (see residency requirement).

How do you apply?

Applications for NeighborWorks Montana HOME Down Payment & Closing Cost Assistance go through NeighborWorks Montana, 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 Homebuyer education class from a NeighborWorks Montana partner organization..

2. 2

   Contact NeighborWorks Montana to reserve funds

   Funds are reserved through Lender must check fund availability with NeighborWorks Montana prior to reservation., 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.