Down Payment Path

Down Payment Assistance Programs in Montana

Montana offers several programs designed to help homebuyers cover the upfront costs of purchasing a home. These initiatives are available to a broad audience, making homeownership more accessible for both first-time and repeat buyers across the Treasure State.

MBOH Bond Advantage Down Payment Assistance Program

The Montana Board of Housing (MBOH) Bond Advantage Program provides financial assistance to help buyers manage down payment and closing costs.

  • Offers up to 5% of the loan amount as assistance.
  • Structured as a deferred loan with no monthly payments.
  • Repayment is deferred until the home is sold, refinanced, or the first mortgage is paid off.
  • Available for FHA, VA, USDA, and conventional loans through MBOH-approved lenders.

MBOH Regular Bond Program

The Regular Bond Program offers competitive fixed-rate mortgage options paired with down payment assistance.

  • Open to both first-time and repeat buyers meeting program requirements.
  • Income and purchase price limits apply, but the program supports a wide range of buyers.
  • Can be combined with down payment assistance for additional savings.

USDA Rural Development Loans

For buyers in rural Montana, the USDA Rural Development Loan provides affordable financing with no down payment required.

  • Open to low- and moderate-income buyers in USDA-eligible areas.
  • Flexible credit requirements and competitive interest rates.
  • Can be paired with state or local assistance programs to cover closing costs.

Mortgage Credit Certificate (MCC)

The Mortgage Credit Certificate (MCC) program offers significant tax savings to help reduce the overall cost of homeownership.

  • Allows buyers to claim a federal tax credit for a portion of their mortgage interest paid annually.
  • Can be combined with Montana Housing loans and down payment assistance programs.
  • Income and purchase price limits apply.

Local Assistance Programs

Several cities and counties in Montana provide additional support for homebuyers through grants or low-interest loans.

  • Programs in areas like Billings, Missoula, and Bozeman often target buyers purchasing in revitalization neighborhoods or first-time buyers.
  • Some initiatives offer benefits for public service workers or individuals purchasing homes in targeted areas.
  • Eligibility criteria and assistance amounts vary by location.

Montana’s down payment assistance programs are designed to make homeownership more attainable by reducing upfront costs. Whether you’re buying your first home or upgrading, these resources can help you achieve your dream of owning a home in the Treasure State.