NeighborWorks Montana Statewide Low-Mod Amortizing Second

What is NeighborWorks Montana Statewide Low-Mod Amortizing Second?

NeighborWorks Montana Statewide Low-Mod Amortizing Second is a second mortgage for homebuyers in Montana, administered by NeighborWorks Montana.

• Amortizing subordinate mortgage for down payment and closing costs; $2,500-$20,000; 30-year term; rate is 1% below first mortgage rate (floor 2%); income up to 150% AMI (115% for FHA); no FTHB requirement; statewide except Cascade County.
• No first-time homebuyer requirement.
• 150% AMI income limit.
• Statewide coverage.
• Low interest rate (1% below first mortgage).
• Funding comes from NeighborWorks Montana.

How much assistance does it provide?

NeighborWorks Montana Statewide Low-Mod Amortizing Second offers between $2,500 and $20,000 in assistance.

• Award tiers: FHA 1st mortgages: max income 115% AMI; all others: 150% AMI.
• Buyer contribution: Borrowers must contribute minimum $1,000 from own funds; FHA borrower must contribute 3.5% down.
• The program can be combined with Montana Board of Housing and other 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 Statewide Low-Mod Amortizing Second is a second mortgage and is repaid under the terms set by NeighborWorks Montana.

• Repayment is triggered by Sale, no longer sole residence, death, or 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 Statewide Low-Mod Amortizing Second is open to buyers who will live in the home as their primary residence.

What are the income limits?

NeighborWorks Montana Statewide Low-Mod Amortizing 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 Statewide Low-Mod Amortizing 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 not eligible.
• Manufactured homes are eligible.

Where does it apply?

NeighborWorks Montana Statewide Low-Mod Amortizing 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 Statewide Low-Mod Amortizing Second 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 NeighborWorks Montana approved homebuyer education class.

2. 2

   Contact NeighborWorks Montana to reserve funds

   Funds are reserved through NWMT Lender Portal, 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.