First Time Home Buyer

 Programs in Montana

Complete First Time Home Buyer Programs Available in Montana.

The state agency created by the legislature in Montana to offer first time home buyer programs is the Montana Department of Commerce, Housing Division. Here is a summary of the current first time home buyer programs that are offered:

Single Family Program

The Single Family Program began in 1977. Its purpose is to assist low and moderate income Montanans in purchasing homes in the State of Montana. The Board issues tax-exempt Mortgage Revenue Bonds to provide below market rate funds to either purchase existing housing or new construction. Primarily, this program is intended to be utilized by first time home buyers, however, in certain "targeted" areas, the borrowers do not need to be first time buyers. Other features include certain income requirements and house price restrictions which must be met. Loan fund availability and mortgage rates vary with each new bond issue. For more information call the Board at 406.841.2840, or, ask your local lender if they are a participant in our program. For more information, see our Q & A Brochure.

Disabled Accessible Affordable Homeownership Program

In 1993, the Board initiated its Disabled Accessible Affordable Homeownership Program for persons with disabilities to acquire affordable, architecturally accessible homes. Qualifying for this program requires that an eligible homebuyer, spouse, child or parent must have a permanent physical disability with a mobility impairment, an annual income not exceeding $30,000 or total family assets exceeding $50,000, and, be a first time homebuyer or have a home which was purchased prior to the disability and is no longer accessible to their needs. Interest rates vary from 2.75% up to 5%, depending on the buyers annual income.

Recycled Single Family Mortgage Program

Recycled Single Family Mortgage Programs. The Board may make additional mortgage funds available through the recycling of mortgage prepayments and other funds held under prior bond issues of the Single Family Bond Program. The Board works in partnership with local non-profit housing organizations, local governments, and other housing providers to develop programs to target specific housing needs within a local community. Below market rate funds are often coupled with federal grants or local funds to assist in making homeownership more affordable for lower income families and individuals.

For complete details on these first time home buyer programs available to Montana residents, visit the Montana Department of Commerce, Housing Division website.

It is highly recommend that you also visit the First Time Home Buyer Grants page for free  assistance with the down payment.

Best Lender For First Time Home Buyer Loans

Unfortunately, some lenders do not like to work with first time home buyers (due to not having a track record), and prefer instead to only provide mortgages to people who have previously owned a home. If you do not need help with the down payment and are not in need of any state program, but simply want to apply for a mortgage, we recommend  ING DIRECT Orange Mortgage They have great rates, an easy online application, and welcome first time home buyers. Additionally they have not been as severely hurt by the subprime mortgage crisis and are still approving the majority of applications.

Other First Time Home Buyer Programs & Resources