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Bridging the "Affordability Gap"
Many people face challenges to homeownership. Some are caught in a renters’ trap; they could afford a house payment, but are having a hard time saving funds for down payment and closing costs. Others face an "affordability gap" which occurs when the amount of a loan they qualify for, based on their income, isn't high enough to purchase a home in their area.
There are several groups in Montana that address these challenges. They are cities, counties, non-profits, lenders, employers and others who are willing to step in and help make home ownership happen.
The various Down Payment Assistance Programs are usually able to contribute anywhere from $1,500 to $40,000, depending on the homebuyer’s need, location, and the specific program limitations. The down payment assistance may take the form of a second loan that requires payments, or the payment on these second loans may be deferred until the home is sold. It is important for the you, the homebuyer, to know that these are loans, and not grants. Down the road when you sell your home, the non-profit gets paid off and is then able to use that money again to help someone else buy a home.
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Apsaalooke Nation Housing Authority in Crow Agency – Down Payment Assistance Program provides a grant to enrolled members of the Apsaalooke nation to be used for the purchase of a single family home on or near the Crow Indian reservation. The grant amount is not to exceed $10,000. Applicants must participate in a homebuyer education program. http://www.crowhousing.org/hoprog.htm
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DISTRICT 7 HRDC – IDA Program
“Families Saving for Tomorrow” is a matched savings program (IDA) for home ownership. Save $1,000 and receive a $3,000 match. This financial incentive to save coupled with support, encouragement, and financial education is a great way to invest in your future and develop assets that increase in value over time. CONTACT US: Hanna Pancheau, Asset Development Coordinator 406.247.4765 or hpancheau@hrdc7.org. Download an application: www.hrdc7.org/programs/savings_programs (Serving Big Horn, Carbon, Custer, Musselshell, Rosebud, Stillwater, Sweet Grass, and Yellowstone County)
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HRDC 9 in Bozeman - Road to Home Program - Depending on eligibility and need, our program can provide up to $30,000 to first time homebuyers to help with down payment and closing costs. http://www.thehrdc.org/programs/road-to-home-3/
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HUD website – Homeownership Assistance: Montanahttp://www.hud.gov/local/mt/homeownership/buyingprgms.cfm
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Human Resource Council in Missoula – Down Payment Assistance; a deferred payment simple interest second mortgage with no payment until first mortgage is satisfied with either a sale, refinance or is paid in full. Loans up to $35,000 in Mineral, Missoula and Ravalli Counties. Household income cannot exceed 80% of HUD median income. Household must contribute a minimum of 3% of the home’s purchase price. Maximum purchase price of home may not exceed FHA mortgage limits for county of purchase. http://www.hrcxi.org/housing_firsttime.php
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NeighborWorks Great Falls - Down Payment Assistance. For families that qualify for first mortgages from a financial institution, NWGF has loans for down-payment and closing costs. Depending on your family income and dependents, these loans can be as low at 1% interest and up to $20,000.
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For low income families that cannot afford to make full payments, NWGF has 0% deferred second mortgages which do not require monthly payments and are repaid with equity share when the home is sold, is no longer the principal residence, or when the first mortgage is repaid. http://www.nwgf.org/loans.html
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NeighborWorks Montana - Down Payment Assistance. For families that qualify for first mortgages from a financial institution, NWMT has loans for down-payment and closing costs up to $10,000 at various interest rates. In certain areas, we have loan programs that may provide up to $40,000 for low-income homebuyers. Most loans require monthly payments. Families below certain income limits may be able to qualify for 0% deferred second mortgages which do not require monthly payments and are repaid with equity share when the home is sold, is no longer the principal residence, or when the first mortgage is repaid. http://nwmt.org/loansavailable.html
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NeighborWorks Montana - Montana’s Garrity Individual Development Account is a matched savings account IDA that helps you open the door to homeownership. The program is a 4:1 match that helps you establish savings and budgeting habits in preparation for homeownership and establishes a relationship with a lending institution. http://nwmt.org/idaprogram.html
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Opportunity Link – An additional $1000 is provided at the closing of a home purchase in which the NWMT IDA is used and the homebuyer lives in one of the following counties: Blaine, Cascade, Choteau, Glacier, Hill, Judith Basin, Liberty, Pondera, Phillips, Toole, Teton.
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Northern Cheyenne Tribal Housing Authority - Down Payment and Closing Cost Assistance to Income Eligible Tribal members who are first time homebuyers to purchase single family homes which are to be used as their primary residence. Down Payment and Closing Cost forgivable loans are limited to either; the total down payment and loan closing costs, Ten Percent (10%) of the total loan, or a maximum of $10,000.00, whichever is less. http://www.nctribalhousing.org
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Salish & Kootenai Housing Authority Services in Pablo – Down Payment Assistance is available to qualified first time homebuyer families. SKHA offers a 0% interest loan for closing costs and up to $15,000 on buy down assistance loans that are deferred to the first mortgage. http://www.skha.org/SKHA%20Services.html
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