Program Description
Bond Advantage Down Payment Assistance Program can be used for down payment and closing cost assistance. Available for up to 5% of sales price, maximum $15,000. Same fixed rate as the Montana Housing 30-year first mortgage. 15 years amortizing loan with low monthly payments. Minimum mid credit score of 620. Min $1,000 borrower investment (can be gifted). Homebuyer Education is required
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Montana Housing USDA DPA Advantage Program
Min. Credit Score
620
Min. Down Payment
0%
Max Loan Amount
No Limits
Qualification variables shown here are for 1-Unit Primary Residences, and loan amount ranges vary based on US County. Register Now to see if this loan program is a good fit for you, find your county limits, and find more options for purchasing a home.
Pros & Cons
- Affordable, long-term financing for first-time homebuyers with low income.
- Credit Score down to 620
- Income limits based on household members' income.
- Must first qualify for an FHA, VA, or USDA Loan
- Max DTI of 31% (front ratio) and 41% (back ratio)
- Min $1,000 borrower investment (can be gifted)
- Specific USDA-defined property zones
Program Availability
Montana Housing USDA DPA Advantage Programs are available in 1 state.
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“As a loan officer, I would advise homebuyers to consider Montana Housing's DPA Advantage Program for borrowers that have minimal cash available to purchase a home. $1,000 min investment can be gifted. USDA loans a a limited service area"
Occupancy & Property Types
Qualification factors for this program can vary based on how you intend to occupy the property and what type of property you are purchasing. By registering for a free account , you can check program limits for all property and occupancy types.
Occupancy Types
Available Property Types for Primary Residence
Income & Purchase Price Limits
Your Debt-to-Income Ratio (DTI), as well as purchase price and income limits, are important factors when qualifying for a home loan program. By registering for a free account , you can find the exact program limits for this program and others in your area and for your unique scenario.
Debt-to-Income Limit
41.00%
Purchase Price Limit
$471,176 - $717,436
Income Limit
$89,700 - $126,240
Annual Household (1-2) Income
Qualification variables shown here are for 1-Unit Primary Residences, and loan limit ranges vary based on US County. Amounts may be rounded. Exact amounts can be accessed by registering for a free account.
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Key Features
- $0 Down Payment
- Closing Cost Assistance
Additional Conditions
Other Limitations
In some circumstances, there are specific requirements you must meet or homebuyer education courses you must attend in order to be eligible for the loan program.
No other program limitations
A Homebuyer Education Class may be required for this loan program.
Class Name: NeighborWorks Montana
Neighborworks offers homebuyer education through a network of non-profits, government agencies, and private organizations specializing in first-time homebuyer services and loans. They provide comprehensive classes covering all aspects of homeownership to help buyers make informed decisions on both a home and a loan. The classes meet HUD requirements and are taught by certified educators from the National Center for Homeownership Education and Counseling.
Mortgage Insurance & Fees
Most mortgage programs require mortgage insurance when you are financing more than 80% of the purchase price or appraised value. Some programs may also have an associated funding fee, paid at the time of closing, or an annual fee. Learn all about the different fees here.
No Mortgage Insurance
This program does not require Private Mortgage Insurance (PMI).
Type: USDA Gurantee Fee
The USDA loan program required the borrower to pay a funding fee called the "Upfront Guarantee Fee" that is equal to 1.0% of the loan amount and can be financed into the loan
Type: USDA Annual Fee
The USDA loan charges and annual fee based on the total remaining balance of the mortgage at .35% rate
Estimated Closing Costs: 2.5%
These amounts are just an estimate. Your closing costs include things like loan origination fees, discount points, appraisal fees, title insurance, taxes, deed recording fees, and other charges.
Grants, Bonds & 2nd Mortgages
There are certain programs that can be combined with this MBOH USDA DPA Advantage Program program to help cover all or a portion of your down payment and closing costs, or provide additional borrower benefits.
Similar Loan Programs
If you think this home loan program may be a good fit for you, you may also want to check out the following programs that share many similarities with the current program.
Related Resources
2023 Down Payment Assistance Guide
Unless you're related to a dragon or leprechaun with a hoard of gold stashed away somewhere, chances are you are like one of the other 87% of homebuyers who need to finance their home purchase.
Read More
High Balance FHA Loans Explained
Explore high balance FHA loans: low down payment, relaxed credit guidelines, and higher loan limits in high-cost areas. Ideal for first-time homebuyers.
Read MoreVisit our Mortgage Education Center for more resources.
* Can be used for down payment and closing cost assistance. Available for up to 5% of sales price, maximum $15,000 as 15 yr loan.
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