Guides / Down Payment Assistance / Montana

Down Payment Assistance in Montana

Montana does have a distinct state-level down payment assistance system, run by Montana Housing (a division of the Montana Department of Commerce, also called the Montana Board of Housing), rather than a single flagship program. First-time (and some repeat) buyers get down payment/closing-cost help through second-mortgage products layered on top of a required Montana Housing 30-year first mortgage: the repayable low-interest 'Bond Advantage' DPA and the 0%-interest deferred-payment 'MBOH Plus' DPA, both currently capped at 5% of sales price / $15,000, both requiring a 620 minimum credit score and homebuyer education. Veterans have an additional discounted-rate first-mortgage option (uncapped by income) that can be paired with either DPA loan. All figures below were verified directly from Montana Department of Commerce/Montana Housing's official program and rate pages as of their most recent posted update (rate sheet effective 03/06/26); income and purchase-price limits vary by county, so exact caps should be confirmed against the county-specific tables before advising an individual buyer."}

Programs

Bond Advantage Down Payment Assistance Program
Montana Housing (Montana Board of Housing / Montana Department of Commerce)
Amount: Up to 5% of the home's sales price, maximum $15,000, structured as a 15-year amortizing second mortgage at the same fixed interest rate as the accompanying 30-year first mortgage (first mortgage rate 5.625% as of the 03/06/26 rate sheet)
Type: Second mortgage loan (repayable, low monthly payments) for down payment and/or closing costs
Must be used with a Montana Board of Housing 30-year first mortgage (Regular Bond or Set-aside Loan Program); minimum credit score 620 for all borrowers; borrower must make a minimum $1,000 cash investment in the purchase (gifts allowed); homebuyer education course required; first-time buyer status generally required to qualify for the underlying Bond first mortgage (income and purchase-price limits apply and vary by county)
MBOH Plus 0% Deferred Down Payment Assistance Program
Montana Housing (Montana Board of Housing / Montana Department of Commerce)
Amount: Up to 5% of sales price, maximum $15,000, as a 0% interest, no-monthly-payment second loan; repayment deferred until sale, transfer, refinance, or payoff of the first mortgage
Type: Deferred-payment 0% second mortgage (silent second)
Requires a Montana Board of Housing 30-year first mortgage at a fixed rate (5.625% as of 03/06/26); household income limit of $80,000 for 1-2 person households and $90,000 for 3+ person households (these are the program's own caps; note some counties such as Yellowstone/Billings use higher county-specific bond program limits, so verify local figures); minimum credit score 620; maximum debt-to-income ratio 45%; $1,000 minimum cash investment (can be gifted); homebuyer education required
Montana Veterans' Home Loan Program
Montana Board of Housing / Montana Department of Commerce
Amount: First mortgage loan up to $538,139 loan amount cap at 4.375% (as of 03/06/26 rate sheet); functions as a favorable first-mortgage rate rather than direct down payment cash, but can be paired with Bond Advantage or MBOH Plus DPA for down payment help
Type: Discounted-rate first mortgage for veterans/active military, combinable with DPA programs
Must be a qualifying veteran or active-duty service member; no income, purchase price, or asset limits apply to this specific program (unlike other MBOH programs)

Facts on this page reflect research current as of 2026-07-05. Programs, rates, and laws change — confirm current figures with the relevant state agency before relying on them.

Related Resources
Property Taxes in MontanaTransfer Tax & Closing Costs in MontanaBuyer-Agent Agreements in MontanaSeller Disclosure Laws in MontanaFind Agents in MontanaDown Payment Calculator