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.

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. Homebuyer 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.

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.

NeighborWorks Montana Statewide Low-Mod Amortizing Second is open to homebuyers who will live in the home as their primary residence. On credit, the program states: Middle score of 640 unless valid compensating factors. A homebuyer education course is required, through NeighborWorks Montana approved homebuyer education class. Non-occupying co-borrowers not permitted; total household assets cannot exceed $100,000; borrower cannot own residential rental property; ACH required; CLTV max 105%; not assumable.

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.

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.

NeighborWorks Montana Statewide Low-Mod Amortizing Second serves homebuyers purchasing anywhere in Montana. The program targets specific areas: Statewide Montana except Cascade County (served by NeighborWorks Great Falls).

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. Funds are reserved through NWMT Lender Portal. Hey Prescott is not a lender and does not accept applications; this page describes the program so a homebuyer can take it to a lender or housing counselor.