Score Advantage Down Payment Assistance Program

The Montana Board of Housing (MBOH) recognizes that although many potential homebuyers can afford monthly mortgage payments, they may not have the funds to make heavy down payments or pay closing costs. For this reason, MBOH has partnered with organizations around the state to help people get out of the “renters trap.”

One of the ways MBOH helps is with the Score Advantage Down Payment Assistance (DPA) Program. This program helps borrowers qualified for MBOH financing, but lack the money for down payment and closing costs. Eligible applicants are afforded between $1,500 and $6,500—or up to 5 percent of the purchase price—in addition to funds for 30-year FHA, VA, Rural Development or HUD-184 loans. This is an amortizing junior loan take out on the property closed in the lender's name and assigned to MBOH. The DPA and 30-year mortgage are fixed-rate loans, without a prepayment penalty.

Eligibility Requirements
Borrowers must have a mid-credit score of at least 620. Those with no credit history will be eligible for the program as long as the loan meets underwriting standards established by the insurer or guarantor of the first-position loan. In cases of multiple borrowers, the highest mid-credit score will be used to determine the mortgage rate. All applicants must complete a homebuyer education course, and be able to contribute a minimum of $1,000 cash in the purchase. MBOH also requires that the home being purchased as their primary residence.

Interest Rates
Based on credit scores at time of application and borrowers with higher credit scores enjoy lower rates:

• Regular rate without DPA 3.50% (or current regular bond rate)
• Rate with DPA and 740+ score 3.75% (or current regular bond rate + .25%)
• Rate with DPA and 700-739 4.00% (or current regular bond rate + .50%)
• Rate with DPA and 660-699 4.25% (or current regular bond rate + .75%)
• Rate with DPA and 620-659 4.50% (or current regular bond rate + 1.00%)

*All rates subject to change