NeighborWorks Great Falls
NeighborWorks Montana
509 1st Avenue South , Great Falls, MT 59401
(406) 761-5861 Toll Free (866) 587-2244
FAX (406) 761-5852 or (406) 216-3850
Statewide Low & Moderate Amortizing Second Mortgage Program
Program Summary:
Second mortgage available to assist qualified Borrowers with their down payment and closing costs associated with purchasing a single family home. Borrowers are required to occupy the home as their principal residence for the duration of the loan. Borrower must qualify for a 1st mortgage (FHA/VA/CONV/RD) through a participating Lender. Loans are available for homes throughout the State of Montana.
Borrowers Income must be at or below 125% of the HUD median income guidelines adjusted for family size and for the county the home is located in. Native American Borrowers income can be up to 150%.
Minimum Loan Amount : $1,500.00 Maximum Loan Amount: $5,000.00
| Term : | Max 30 years for Borrowers <80% median income |
| Max 15 years for Borrowers >80% median income |
Interest Rate: Varies according to Borrowers income
** Interest Rate as of 10/1/08 (rates subject to change quarterly (next change due 1/1/09) – check web site):
| Borrowers Income | Interest Rate |
Term |
| <50% AMI | 1.00% |
(max 30 year term) |
| 51% - 65% | 3.00% |
(max 30 year term) |
| 66% - 80% | 5.25% |
(max 30 year term) |
| 81% - 150% | 6.25% |
(max 15 year term) |
Ratios: Maximum 29/41 unless valid compensating factors apply.
Loan to Value: Total loan to value cannot exceed 105% of the purchase price unless valid compensating factor apply
Cash requirement: Borrowers are required to contribute at least $500.00 of their own funds.
Total family liquid assets cannot exceed $5,000.00 and total family assets cannot exceed $70,000.00.
Fees: There will be a $350.00 loan packaging fee, a Title policy fee (estimated at $50.00), Recording of approximately $49.00, a Title Company closing fee (as charged by Title Company estimated at $50.00), and pre-paid interest.
Security: Second Mortgages will be secured by a deed of trust. NWGF will need to be in 2nd lien position (unless valid compensating factors apply). The second mortgage is not assumable.
Payments: Mandatory ACH payments are required
Borrowers are required to complete NWGF/NWMT approved Homebuyer Education class prior to loan closing.
Loan packages must be sent to the NWGF/NWMT office in Great Falls using our reservation checklist. Allow 1½ – 2 weeks processing time.
Revised 10/2/08