Bond 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 Bond Advantage Down Payment Assistance Program. This program helps borrowers qualified for MBOH financing, but lack the money for the down payment and closing costs. Eligible applicants are afforded up to 5% of the purchase price or $10,000 -whichever is less- in the form of a junior loan. This requires a Montana Housing 30-year first mortgage, and both loans have the same fixed rate. 

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.

*Seller-funded down payment programs were eliminated in the Housing and Economic Recovery Act of 2008, but state and local government agencies are still permitted to help borrowers finance their homes with second mortgages and grants. These agencies set different requirements that a borrower needs to meet in order to qualify for the grant programs, such as property location, and purchase price, and income limits.

Note: These figures were accurate at the time of publication and may no longer be current - visit the program website for updated information.