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Best First-Time Home Buyer Programs in Montana

Owning a home is nothing short of the American dream. However, if you’re unable to make this dream a reality due to financial constraints, there are now a range of first-time buyer programs that can help you along the way. Read our guide to find out what’s available for those based in Montana.
Owning a home is nothing short of the American dream. However, if you’re unable to make this dream a reality due to financial constraints, there are now a range of first-time buyer programs that can help you along the way. Read our guide to find out what’s available for those based in Montana.

Purchasing a home for the very first time can be an awfully stressful time. Not only do you need to spend the time finding your dream home, but perhaps more importantly, you need to ensure that you're able to afford it.

This can cover a number of key hurdles such as saving up the required down payment, the costs associated with closing, and of course, the type of mortgage deal you're able to obtain. Moreover, the costs don't stop once you've been handed the keys, as there is likely to be additional expenses such as maintenance or repairs.

Nevertheless, there are now a number of notable programs in Montana that can help you deal with these financial roadblocks.

In our brief guide, we are going to discuss some of the best first-time home buyer programs in Montana right now. Not only this, but we'll explore what's available at a federal level.

Montana Programs for First-Time Home Buyers

In a nutshell, the state of Montana engages in the sale of tax-exempt mortgage revenue bonds with the view of easing homeownership for first-time buyers. In layman terms, this means the vast majority of Montana communities have access to participating lenders of the help to buy program.

Down Payment Assistance

One of the most notable services available to first-time buyers is a down payment assistance program. These are essentially loans contributed by stakeholders in the Montana area, and can range from between $1,500 and $40,000 in value.

The amount that you are able to get will ultimately depend on your individual circumstances and in some cases, your location. Although the down payment assistance program is a loan rather than a grant, the great thing about it is that in some cases you can defer payments until your home is sold.

MBOH Plus 0% Deferred Down Payment Assistance Program

An additional program that falls within the remit of first-time buyer assistance is that of the MBOH Plus 0% Deferred Down Payment Assistance Program. Essentially, the program offers up to $6,500 to first-time home buyers that are looking for assistance with their down payment.

These 0% deferred loans are serviced either by a local lender, or Montana Housing themselves. Take note, you'll need to have a mid-credit score of 620, and certain Montana counties such as Blane, Sanders, Deer Lodge, Silver Bow, Flathead, Mineral, Missoula & Hill are excluded.

Here’s the full list of participating lenders on a city-by-city basis, as per Montana Housing.

If you’re looking for more information on first-time home buyer programs at a state level, then be sure to read our comprehensive guide.

Federal First-Time Home Buyer Programs

If none of the aforementioned Montana state programs are sufficient for your individual needs, or you require additional funding on top, then it is well worth checking out what federal first-time home buyer programs are available. We have listed two of the most notable below, although feel free to check out guide to explore what else is available.

FHA Home Loan Program

If you're looking for federal assistance in your endeavors to become a homeowner for the very first time, then it might be worth considering the FHA Home Loan Program. The program offers those with a minimum credit score of 580 a home loan with a down payment of just 3.5%.

You'll still be eligible if your FICO score falls between 500-579, although in this instance you'll be required to commit to a 10% down payment. We should also note that the program rolls FHA closing costs into the loan agreement, subsequently meaning that you won't be required to pay them in advance.

HUD Good Neighbor Next Door Program

If you're working in the public sector as either a teacher, firefighter, a law enforcement officer, or medical technician, it is strongly recommended that you consider the HUD Good Neighbor Next Door Program. If you're eligible, you get a remarkable 50% off the listed price of the home. Even better, you'll only be required to contribute $100 as a down payment.

Take note, you can only purchase single-family homes with this particular program, and you must reside in the purchased property for a minimum of three years.

Private Lender Programs in Montana for First-Time Home Buyers

On top of state and federal based first-time buyer programs, it’s also worth taking a look at private lender programs. Although a more comprehensive overview is available in our dedicated guide, we should note that one of the most notable private lender programs for first-time buyers is that of the HomeOne.

Offered by Freddie Mac, the program facilitates mortgages with a down payment of just 3%. This particular program is also favorable because it does not base decisions on geographical location or income. Instead, you'll need to undergo a Freddie Mac risk assessment

Home Buyer Rebate

So now that you have a firm grasp of the types of assistance available for first-time buyers at a state, federal and private level, we should also make you aware of home buyer rebates.

For those unaware, a home buyer rebate is where a buyer's real estate agent gives the buyer a percentage of the commission that they received when they closed the deal. This particular program is available in Montana, alongside 39 other states. Rebates can be used for a number of things related to the purchase of your first time home, including down payments or closing costs.

In terms of how much you're likely to receive, this will depend on the agent in question as rebates need to be negotiated. Fortunately for you, there is no requirement to shop around for the best rebate deal, as Clever Partner Agents have all agreed to offer a commission rebate up to 1% of the home's purchase price. To find out how the Clever Home Buyer Rebate works, be sure you read more here,

Ultimately, by using a Montana agent via the Clever Network, they’ll be able to guide you through the Wild West for first-time buyer programs. They’ll have all of the required knowledge to get you the best funding program at a state, federal and potentially, private level.

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Ben Mizes

Ben Mizes is the co-founder and CEO of Clever Real Estate, the free online service that connects you with top agents to save thousands on commission. He's an active real estate investor with 22 units in St. Louis and a licensed agent in Missouri. Ben enjoys writing about real estate, investing, personal finance, and financial freedom. He's a serial entrepreneur, having run several successful startups before Clever Real Estate. Ben's writing has been featured in Yahoo Finance, Realtor News, CNBC, and BiggerPockets.

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