Down Payment Assistance in Montana

What is down payment assistance in Montana?

Montana’s home prices have climbed fast in recent years, especially near Bozeman and other mountain towns that have drawn a wave of new residents. Even with that growth, the right down payment assistance can still make homeownership achievable, whether you’re buying near Big Sky Country’s mountains or in one of its smaller, more affordable communities.

Homebuyers may be able to use down payment assistance (DPA) programs to help them purchase a property. Down payment assistance is made up of national, state, local, and employer-sponsored programs designed to support homebuyers who can afford a monthly mortgage payment but need help coming up with the upfront cash needed for a down payment and closing costs.

Offered by government agencies, nonprofits, and some private organizations, DPA provides financial support to help homebuyers cover the down payment, closing costs, or both. It helps to bridge the gap between what buyers have saved and the funding they need to buy.

It may also provide homebuyers with a financial cushion, so they don’t have to drain all of their savings to afford homeownership.

From the jagged peaks of Glacier National Park to the wide-open plains of the eastern prairie, Montana homebuyers can tap into statewide, local, and community-based programs that help cover the upfront costs of purchasing a home.

Assistance typically comes in one of three forms: a grant (money you don’t repay), a forgivable loan (which is gradually forgiven the longer you stay in the home), or a low-interest loan. The right option depends on the program and your individual situation.

Whether you’re a first-time homebuyer in Montana or returning to homeownership after years away, there may be money available to help make up the difference between how much you’ve saved and the amount you need to close on a home.  

How does down payment assistance work?

Every down payment assistance program has its own rules, but most follow a similar path from homebuyers researching their options to funding.

Research. The DPA landscape is larger than most people realize. In fact, there were more than 2,700 DPA programs as of July 2026, according to Down Payment Resource, a company that connects homebuyers to the programs. Assistance may be available at the state, county, city, or employer level, and different programs have different eligibility requirements. If one program doesn’t fit your situation, keep looking. There may be others that will.

Determine your eligibility. Common requirements include income limits, minimum credit scores, and property location restrictions. Understanding your financial profile, where you want to buy, and how long you plan to live in the home will help you identify which programs are worth pursuing.

Apply. Once you find a down payment program that fits your criteria and eligibility, you’ll submit an application and supporting documents. Expect to provide proof of income, personal identification, credit information, and details about the property you intend to purchase.

Get approved and receive funding. If your application is approved and your information verified, you’ll receive the assistance at closing. It’s typically applied directly toward your down payment, closing costs, or both, depending on the program’s terms.

It is important to note that most DPA programs have their own conditions, which may include having to repay the loan in part or full if you move early, sell, or refinance the home. Make sure to always review and understand the terms and conditions of any loan you use.

Additionally, some programs may run out of funding. That’s why it’s important to check availability and stay on top of deadlines.

Who qualifies for down payment assistance?

Many people don’t realize they may be able to qualify for down payment assistance. DPA isn’t just a tool for first-time and first-generation homebuyers or those with lower incomes.

The assistance is available for a wide variety of people in a range of financial situations. Nearly two-thirds, 62%, of current DPA programs serve homebuyers earning more than $100,000 a year and 11% have no income limits, according to Down Payment Resource.

Additionally, more than a third, 38%, of DPA programs don’t have a first-time homebuyer requirement.

There are DPA programs for: First-generation homebuyers, Native American homebuyers, veterans, educators, law enforcement, first responders, municipal employees, those who earn less than a certain threshold, and more. Some programs also exist for buyers who purchase properties in certain communities.

Some organizations also offer homeownership assistance programs for their employees, so make sure you check with your employer as well.

Types of down payment assistance

The majority of DPA programs fall into two categories: Second mortgages and grants.

Second mortgages are by far the most common form of down payment assistance, making up 56% of all programs, according to Down Payment Resource. This is a separate loan running alongside your primary mortgage, with its own monthly payment.

Second mortgages are often set up to be a deferred or forgivable loan to reduce the upfront cost. If you have a deferred loan, it means that it doesn’t have to be repaid until you sell, refinance, or move out. A forgivable loan is gradually forgiven if you live in the home for a set amount of time.

Grants make up 9% of DPA programs and are the most straightforward form of assistance. They’re a gift, with no repayment required under any circumstances. As always, read the terms carefully to make sure you understand any conditions attached.

Finding down payment assistance

Down Payment Resource offers an interactive search feature that allows you to search available DPA programs by location as well as by things like your occupation, military status, or disability status.

New American Funding (NAF) also offers a down payment assistance program called Pathway to Homeownership. Specifically available to first-time homebuyers, eligible borrowers may receive up to $6,000* in financial assistance. This money can be used to help with your down payment, closing costs, or other costs. It can also be combined with other DPA programs.

National down payment assistance programs

While there is not national database of nation-wide DPA programs available, there are several main ones that are notable. They include:

The Chenoa Fund

The Chenoa Fund is administered by CBC Mortgage Agency (a federally chartered tribal housing finance authority). It is one of the most accessible national DPA programs available because it drops two of the most common barriers to qualification. It has no income limits and no first-time homebuyer requirement.

The program covers the required 3.5% down payment on Federal Housing Administration (FHA) loans. The aid is structured either as a forgivable second mortgage or a repayable second mortgage, depending on the option selected.

Borrowers need a minimum 600 credit score to qualify. The program is available in all states except New York.

Since it works through a network of participating lenders nationwide, buyers can access it through their mortgage lender rather than applying directly.

The National Homebuyers Fund

The National Homebuyers Fund (NHF) is a nonprofit organization that provides down payment and closing cost assistance of up to 5% of the loan amount. It’s administered as a grant, meaning no repayment is required.

It has no first-time homebuyer requirement, making it available to repeat buyers who may not qualify for programs with that restriction. It works with FHA, U.S. Department of Veterans Affairs (VA), U.S. Department of Agriculture (USDA), and Conventional loans.

The credit score and debt-to-income requirements are flexible.

The NHF is available in most states and is accessed through a network of participating lenders rather than through a direct application to the fund itself.

Many of the national DPA programs are offered by various lenders and private non-profit organizations like the Homeownership Council of America.

Down payment assistance programs in Montana

The Montana Board of Housing (MBOH) is the state’s housing finance agency and the central source for statewide DPA programs. MBOH doesn’t lend directly to buyers. Homebuyers apply through an approved participating lender, which will combine the assistance with the mortgage.

All Montana Board of Housing loans share a few baseline requirements:

• Household income limits
• Maximum purchase limits
• Residence must be borrower’s primary residence
• Trade or business cannot exceed 15% of the residence’s total area
• Must be first-time homebuyer

MBOH Down Payment Assistance Program

In addition to offering various loan programs, MBOH offers two down payment assistance options that can be combined with any of their loans. In order to obtain down payment assistance, the borrower must be eligible for a regular bond program loan.

Bond Advantage Down Payment Assistance Program: This program offers 5% of sales price, up to $15,000. The funds are offered as a 15-year amortizing second loan with low monthly payments. Assistance can be used toward down payment and closing costs.

Program details and requirements include the following:

• Requires an MBOH 30-year first mortgage, both loans have the same fixed rate
• Minimum credit score of 620 for all borrowers
• Completion of homebuyer education course
• Borrower must provide a minimum of $1,000 cash investment in the purchase
• Repayment is required if the property is sold, transferred, or if the first mortgage is refinanced

MBOH Plus 0% Deferred Down Payment Assistance Program: This program offers 5% of sales price, up to $15,000. The funds are offered as a 0% second loan with no monthly payments. Assistance can be used toward down payment and closing costs.

Program details and requirements include the following:

• Household income limit of $80,000 for 1-2 people and $90,000 for 3 or more people
• Requires an MBH 30-year first mortgage, both loans have the same fixed rate
• Minimum credit score of 620 for all borrowers
• Maximum debt-to-Income (DTI) of 45% for all borrowers. DTI is your debt compared to your earnings.
• Completion of homebuyer education course
• Borrower must provide a minimum of $1,000 cash investment in the purchase
• Repayment is required if the property is sold, transferred, or if the first mortgage is refinanced or paid off

HomeStretch Homebuyer Assistance Program

Administered by nonprofit housing organizations NeighborWorks Montana (NWMT) and NeighborWorks Great Falls (NWGF), the HomeStretch shared-equity homebuyer assistance program offers up to 30% of a home’s purchase price for eligible homebuyers in participating counties. The funds are provided as a deferred second mortgage/shared-equity investment with no interest and no monthly payments required. In exchange, the buyer must agree to share a limited portion of future equity at the time of repayment.

Program details and requirements include the following:

• Borrower will keep up to 1% appreciation per year plus any down payment put in, and principal payments made
• Repayment is required when the property is sold or transferred, or the first mortgage is refinanced, the buyer no longer occupies the property, or the 30-year term ends
• Funds may be used toward the down payment or closing costs
• Applicant must be working with an approved participating lender
• Completion of HomeStretch-specific counseling session
• Household income must be between 60% and 140% of the AMI for the state or the county, whichever is less
• Borrower must contribute 1% of the purchase price from their own funds
• NWGF county list: Blaine, Cascade, Chouteau, Glacier, Pondera, Teton, Toole
• NWMT county list: Beaverhead, Fergus, Gallatin, Judith Basin, Lake, Lewis and Clark, Lincoln, Mineral, Missoula, Musselshell, Park, Petroleum, Powell, Sanders, Valley
• Property must be owner-occupied

Beyond these statewide programs, several Montana cities and counties have established their own DPA programs. Many of these can be stacked with MBOH assistance. That means some eligible buyers may be able to combine multiple programs and significantly increase their total help.

This can help them to cover their down payment, closing costs, or simply have a little left over as a financial cushion.

Billings down payment assistance program

Billings is Montana’s largest city, sitting along the Yellowstone River beneath the sandstone bluffs known as the Rimrocks. As the state's main hub for healthcare, energy, and agriculture, it offers buyers a broader job market than most of Montana's smaller towns, along with a more affordable cost of living than mountain destinations like Bozeman or Missoula.

Billings down payment assistance program includes:

First Time Homebuyer Program: This program offers up to 20% of the home’s purchase price to help low-income households buy their first home. The funds are provided as a non-forgivable loan with no interest and no monthly payments. Funding for this program is provided through the HOME Investment Partnership program (HOME) and the Community Development Block Grant program (CDBG). Each has their own requirements. 

Program details and requirements include:

• HOME applicants must contribute a minimum of $1,000 toward the purchase of the property
• CDBG eligible applicants must contribute up to 50% of the required down payment, which can be $2,500 or more
• Both funds can be used for closing costs or to subsidize mortgage principal amounts for income eligible homebuyers
• Household income must be at or below 80% of area median income (AMI). This is the midpoint of local earnings for an area, calculated by the U.S. Department of Housing and Urban Development.
• Households under 60% of AMI will be prioritized for HOME funding; Households with incomes from 61% to 80% AMI will be prioritized or CDBG funding
• Loan must be repaid in full if the home is sold, rented, the first mortgage is refinanced, or is no longer used as the primary residence
• Completion of a homeownership education course
• Must not have owned a home in the past three years
• Property must be used as a principal residence
• Property must be located within Billings city limits
• Maximum purchase price of $365,000 or less

Missoula, Mineral, and Ravalli counties down payment assistance program

Mineral, Missoula, and Ravalli counties sit in western Montana along the Bitterroot and Clark Fork valleys, anchored by Missoula and its university-driven economy centered around the University of Montana. The region blends college-town amenities with access to national forests, rivers, and mountain trails, while smaller communities in Mineral and Ravalli counties offer more affordable, rural alternatives to Missoula’s rising home prices.

Missoula, Mineral, and Ravalli counties down payment assistance program includes:

First Time Homebuyer Downpayment Assistance Program: The program offers up to $90,000 in down payment assistance. The funds are provided as a no interest, deferred payment second mortgage. Repayment is required when the property is sold, refinanced or the first mortgage is satisfied.  

Program details and requirements include:

• Applicants must qualify for 30-year, fixed-rate of interest first mortgage
• Household gross income must be at or below 80% AMI
• Must contribute a minimum down payment of 3% of the home’s purchase price
• Mortgage payments, including taxes and insurance must be at least 28% and 32% of monthly gross income
• Completion of homeownership course
• Home must be owner-occupied
• Maximum purchase price cannot exceed FHA mortgage limits of county of purchase
• must be your primary residence for a minimum of five years
• Must be a first-time homebuyer
• Meet eligibility requirements (available upon contacting HOAP)

These are some of the down payment assistance programs available across Montana. However, there may be more programs available to you based on your location in the state or your occupation.

For instance, some towns or cities may offer down payment assistance specifically for first responders or teachers. Make sure to do your own research to see if there is a program that may be right for you. And be aware that certain programs may only be available until all of the funding is used.

How to apply for Montana down payment assistance

The application process for different DPA programs may change. However, some general application steps include:

1. Check your eligibility. Review income limits, credit requirements, and first-time buyer status at commerce.mt.gov/housing. For local programs, contact the relevant city or county housing office.  
2. Find a participating lender. MBOH programs are only available through approved lenders in their network.
3. Get pre-qualified. Your lender reviews your income, credit, and debts to determine which programs you may qualify for to receive funding.
4. Complete homebuyer education. Enroll in an approved homebuyer education course and keep your completion certificate for closing.
5. Find your home. Work with a licensed agent to locate a qualifying Montana property. Your lender will confirm if it meets program requirements.
6. Close on your home. Your lender packages your first mortgage and DPA together. Assistance funds are applied at settlement.

Montana down payment assistance FAQs

^{Program details reflect August 2026 information. Down payment assistance programs are subject to change and depend on current funding availability. Always confirm income limits, eligibility requirements, and program details with your lender or the applicable program administrator before applying.}

^{*Credit up to $6,000 maximum. Due to maximum seller concession rules applicable to purchase loan transactions, this credit could be less than $6,000 in some cases where other concessions have been made to the consumer.}