City of Billings - MT First Time Home Buyer Program

The City of Billings designed the First Time Home Buyer Program to close an affordability gap for low-income households unable to purchase their first home without assistance. The program helps them qualify for traditional housing financing programs to purchase their first home.

Available Assistance
The First Time Home Buyer Program offers up to $15,000 assistance in the form of a zero-interest, deferred-payment loan. There are no monthly payments due, but it must be repaid in full if the borrower sells, refinances, or no longer occupies the home. This is a non-forgivable loan, secured with a Promissory Note, Deed Restriction and Trust Indenture (mortgage). Preference is given to applicants who have large families of five or more individuals and households that include a disabled individual.
 
Eligibility Requirements
In order to qualify for the First Time Homebuyer Program, all applicants must be first-time homebuyers; anyone who has owned a home in the last three years is ineligible. The primary applicant must be 18 years old or older, and their annual household income must fall under 80% of the Area Median Income (limits shown below). Their household assets must not exceed $15,000 and they are required to contribute a personal financial investment, ranging between $1,000 and $2,500.
 
Property Guidelines
Using program funds, borrowers can purchase residentially zoned, single-family homes located within the City of Billings limits. The property must serve as the borrower’s primary residence and cannot be put up for rent. The home cannot exceed the maximum purchase price, $209,000; 95% of the current median sales price of homes in the area, as determined by HUD. Homes built prior to 1978 with chipping/peeling paint are not eligible for the program.
 
Income Limits
For loans up to $15,000
1-person household: $28,440
2-person household: $32,520
3-person household: $36,600
4-person household: $40,620
5-person household: $43,920
6-person household: $47,160
7-person household: $50,400
8-person household: $53,640
 
For loans up to $10,000
1-person household: $37,950
2-person household: $43,350
3-person household: $48,750
4-person household: $54,150
5-person household: $58,500
6-person household: $62,850
7-person household: $67,150
8-person household: $71,500

Note: All information mentioned above was accurate at the time of publication and may no longer be current - visit the program website for updated information.