First-Time Home Buyer Programs in Montana

Montana Housing Programs:

Regular Bond Program:

Eligibility: Targets first-time homebuyers (no homeownership in the past three years) or buyers in targeted areas.
Offerings: Provides a 30-year fixed-rate mortgage (FHA, VA, USDA, or conventional) with below-market rates; can be paired with down payment assistance.
Requirements:

• Income must not exceed county-specific limits (e.g., $112,700 for a 1-2 person household in Gallatin County as of 2025).
• Minimum credit score of 620 (varies by loan type).
• Debt-to-income ratio capped at 45% (50% with compensating factors).
• Homebuyer education course required.
• Purchase price limit of $349,525 (non-targeted areas) or $427,198 (targeted areas).

Montana Down Payment Assistance:

Benefits: Offers up to $15,000 as a 0% interest second loan (repayable monthly over 10 years) for down payment and closing costs; available with Regular Bond or other Montana Housing loans.
Eligibility: Must use a Montana Housing first mortgage; income and purchase price limits apply (same as Regular Bond).

Veterans’ Program:

Description: Provides a 30-year fixed-rate mortgage with a reduced interest rate (about 1% below market) for veterans or surviving spouses; combinable with down payment assistance.
Requirements: Must meet Regular Bond income and purchase price limits; proof of veteran status required (e.g., DD-214).

Local Programs:

Billings

Billings Homebuyer Assistance: Offers up to $20,000 as a deferred loan (0% interest, due upon sale or refinance) for down payment and closing costs; income must be at or below 80% AMI (e.g., $62,400 for a family of four).

Missoula

Missoula Down Payment Assistance: Provides up to $15,000 as a forgivable loan (forgiven after 10 years) for first-time buyers; income capped at 80% AMI; targets workforce housing.

Great Falls

Great Falls First-Time Homebuyer Program: Offers up to $10,000 as a 0% interest deferred loan (repayable upon sale) for down payment and closing costs; income must be below 80% AMI.

Additional Information:

• Mortgage Credit Certificate (MCC): Provides a federal tax credit of up to 20% of annual mortgage interest (max $2,000 yearly) for first-time buyers; fee applies; combinable with Montana Housing loans.
• FHA Loans: Minimum 3.5% down payment, suitable for credit scores as low as 580 (10% if below 580).
• USDA Loans: Zero-down payment for rural Montana areas; income limits apply.
• VA Loans: Zero-down payment for eligible veterans or active military.